{"id":7066,"date":"2020-12-09T16:03:08","date_gmt":"2020-12-09T16:03:08","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2020\/12\/09\/kevin-carmichael-on-the-question-of-cews-and-dividends-investors-will-ultimately-decide\/"},"modified":"2020-12-09T16:03:08","modified_gmt":"2020-12-09T16:03:08","slug":"kevin-carmichael-on-the-question-of-cews-and-dividends-investors-will-ultimately-decide","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2020\/12\/09\/kevin-carmichael-on-the-question-of-cews-and-dividends-investors-will-ultimately-decide\/","title":{"rendered":"Kevin Carmichael: On the question of CEWS and dividends, investors will ultimately decide"},"content":{"rendered":"

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Article content continued<\/h2>\n

\u201cThey blew it,\u201d said Cheryl Kim, a Toronto-based consultant who advises corporate leaders on reputation issues. \u201cYou saw a bunch of leaders who were not willing to make a hard decision and say, `You know what? That money was given to us to help keep our company functioning well.\u2019 The fact they gave it to their shareholders, to me, is an absolute abdication of leadership from the CEO, CFO and the board.\u201d<\/p>\n

The owners probably don\u2019t see it that way.<\/p>\n

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There are valid reasons why companies don\u2019t cut dividends, even in current times<\/p>\n

Preetika Joshi, an assistant professor of accounting at McGill University in Montreal<\/p>\n<\/blockquote>\n

It\u2019s easy from the lower rungs of the social ladder to accuse them all of greed, but there is also plenty of academic literature that supports paying dividends, at least if you define your job as protecting a corporation\u2019s share price. The corporate research catalogue is also heavy with evidence that dividends correlate with stock prices.<\/p>\n

If you were running an oil company this year, a dividend might be one of the few things propping up your company\u2019s value. If that\u2019s the case, maybe the moral obligation is to do all you can to avoid wiping out your shareholders.<\/p>\n

\u201cThere are valid reasons why companies don\u2019t cut dividends, even in current times,\u201d said Preetika Joshi, an assistant professor of accounting at McGill University in Montreal. Still, she admits that it\u2019s no longer clear that running a publicly traded corporation is as straightforward as that.<\/p>\n

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Joshi\u2019s research focuses on international tax dodging, and she said it\u2019s clear investors reward companies that find legal ways to lower their tax bills, even if those methods test a standard definition of ethical behaviour. At the same time, the demand for shares in companies that can demonstrate commitments to environmental, social, and governance (ESG) concerns is growing rapidly. The sustainable investing market was worth almost US$40 trillion at the start of 2018, a 34 per increase from 2016, according to the Global Sustainable Investment Alliance.<\/p>\n<\/div>\n\n
Kevin Carmichael: On the question of CEWS and dividends, investors will ultimately decide<\/a>
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2020-12-09 16:03:08<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article content continued \u201cThey blew it,\u201d said Cheryl Kim, a Toronto-based consultant who advises corporate leaders on reputation issues. \u201cYou saw a bunch of leaders who were not willing to…<\/p>\n","protected":false},"author":2,"featured_media":7067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-7066","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=7066"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/7066\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/7067"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=7066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=7066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=7066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}