Green Innovation and Dividend Policy Through the Lens of Controversy Analysis: The Role of National Culture

In today’s business world, green innovation and cultural dimensions have become key determinants of competitiveness and financial resilience. No prior study has examined how national culture may moderate the relationship between dividend policy and green innovation. Our objective is to investigate the link between dividend policy and green innovation in energy companies and to assess how national culture influences this relationship. Our sample consists of 1,899 firm-year observations from 291 international companies over the period 2014–2023. We employ panel data regressions. We show a negative relationship between dividend payments and green innovation. However, this relationship turns positive in countries with high power distance. The findings also indicate that engagement in green innovation does not lead to a reduction in dividend payments in countries with high uncertainty avoidance. This study provides important implications by highlighting the interplay between financial policies and cultural factors in shaping green innovation.