Factors Influencing Dividend Policy Decisions of NASDAQ Firms.
This study reports the results of a 1999 survey of Nasdaq-listed firms. Respondents provided information about the importance of 22 different factors that influence their dividend policy. Our results suggest that many managers of Nasdaq firms make dividend decisions consistent with Lintner's (1956) survey results and model. The results also show significant differences between the manager responses of financial and non-financial firms on nine of the 22 factors. This finding implies the presence of industry effects on dividend policy decisions. In general, the same factors that are important to Nasdaq firms are also important to NYSE firms. Copyright 2001 by MIT Press.
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ABSTRACT: This paper re-examines the dividend policy issue by conducting a simultaneous test of the alternative explanations of corporate payout policy using a two-step procedure that involves factor analysis and multiple regression. Several new proxies for theoretical attributes that have appeared in the literature are introduced, including the role of managerial dimensions in determining dividend policy. Strong support is found for the transaction cost/residual theory of dividends, pecking order argument, and the role of dividends in mitigating agency problems. Strong support is also found for the role of managerial consideration in affecting the firm's payout policy; specifically, firms that maintain stable dividend policies and firms that enjoy financial flexibility pay higher dividends. The results appear to support the tax clientele argument. Copyright 1993 by MIT Press.Financial Review 11/1993; 28(4):523-47. DOI:10.1111/j.1540-6288.1993.tb01361.x
Article: The Pricing of Dividend Consistency[Show abstract] [Hide abstract]
ABSTRACT: This study investigates the pricing of dividend consistency. The approach used is to study the announcement effects around significant dividend changes; specifically dividend omissions, resumptions, and increases or decreases of 25% or more. We focus on the relation between the magnitude of the announcement effect and the firm's history of dividend payment consistency using an ARIMA model. We find that dividend consistency is not priced.Journal of Economics and Finance 06/1996; 20(2):47-61. DOI:10.1007/BF02920891 · 0.42 Impact Factor
- The Journal of Business 02/1961; 34(4):411-411. DOI:10.1086/294442
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