Name: Harvinder Singh
Country: India

Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: Harvinder Singh
DOI: https://doi.org/10.5281/zenodo.19754050

ABSTRACT:
The current study uses a correlational research design to investigate the impact of corporate debt refinancing risk (CD_RFR) on the change in retention ratio and cash dividend payout ratio. The COMPUSTAT of Wharton Research Data Services provided data on American publicly traded firms from 2014 to 2023.This study used ordinary least square regressions to estimate the results from the panel data. Data analysis shows that CD_RFR increases the plowback ratio and decreases the payout ratio. Empirical research also shows that CD_RFR encourages American publicly traded firms to reduce debt leverage in the capital structure and have an optimal capital structure to maximize shareholders‟ wealth. Analysis also shows that changes in corporate debt leverage moderate the association between refinancing risk, dividend payout, and retention ratio. The current study adds to the literature on the association of refinancing risk with the plowback and payout ratios and thus may help investors make stock investment decisions and financial management consultants to provide consulting services.

Keywords: Corporate debt refinancing risk, retention ratio, cash dividend payout ratio,
American firms