Determinants of Corporate Dividend Policy: A Survey of NYSE Firms

Baker, H. Kent; Powell, Gary E.
March 2000
Financial Practice & Education;Spring/Summer2000, Vol. 10 Issue 1, p29
Academic Journal
This study reports the results of a 1997 survey of NYSE-listed US firms about managers' views of what factors determine dividend policy. The study updates and expands previous survey research on dividend policy and provides longitudinal comparisons between 1983 and 1997 on the determinants of dividend policy. The findings show that the most important determinants of a firm's dividend policy are the level of current and expected future earnings and the pattern or continuity of past dividends. The most important factors influencing dividend policy in the 1983 dividend survey are highly similar to those in the current survey. When taken together, these findings suggest little change in dividend determinants over time. Although industry type appears to influence the importance that respondents place on some determinants of dividend policy, some industry-based differences appear to have diminished between the 1983 survey and the current one.[JEL: G35]


Related Articles

  • How Norwegian managers view dividend policy. Baker, H. Kent; Mukherjee, Tarun K.; Paskelian, Ohannes George // Global Finance Journal;Sep2006, Vol. 17 Issue 1, p155 

    Abstract: We survey managers of Norwegian firms listed on the Oslo Stock Exchange about their views on dividend policy. The key factors that drive dividend policies are the level of current and expected future earnings, stability of earnings, current degree of financial leverage, and liquidity...

  • Long-term stock performance following extraordinary and special cash dividends. Chou, De-Wai; Liu, Yi; Zantout, Zaher // Quarterly Review of Economics & Finance;Feb2009, Vol. 49 Issue 1, p54 

    Abstract: Using essentially all declared extraordinary and special cash dividends between 1926 and 2001 which are not preceded or followed by the same for a period of three years, we find no robust post-declaration long-term abnormal stock returns, even in sub-samples defined by the special...

  • The Effect of Dividends on Consumption. Baker, Malcolm; Nagel, Stefan; Wurgler, Jeffrey // Brookings Papers on Economic Activity;2007, Issue 1, p231 

    This article estimates the effects of dividends on consumption and the implied effects of the 2003 dividend tax cuts. "The Effect of Dividends on Consumption" was a paper presented at the Brookings Panel on Economic Activity on March 29 and 30, 2007. In traditional models, the division of stock...

  • Good Yields AND Good Growth.  // DRIP Investor;Apr2005, Vol. 14 Issue 4, p4 

    The article reports that the most potent aspect of dividend investing is the benefit that comes from owning stocks with rising dividend streams. Companies that regularly boost their dividends provide a nice inflation hedge as well as a growing cash stream that can have a huge impact on total...

  • Tech Dividends.  // DRIP Investor;Oct2010, Vol. 19 Issue 10, p1 

    The article presents a question and answer advisory related to Dow Jones Industrial Average and dividend. It states that Cisco Systems (CSCO) has around 40 billion dollars in cash and investment, so the rumor that it can afford to pay a dividend is not true. According to the author, he would...

  • The Effect of Ownership Structure on Dividend Payout Policy: Evidence from Jordanian Context. Warrad, Lina; Abed, Suzan; Khriasat, Ola; Al-Sheikh, Imad // International Journal of Economics & Finance;Feb2012, Vol. 4 Issue 2, p187 

    The article presents information on a study that examines the possible association between ownership structure and dividend payout policy of Jordanian industrial public shareholding companies. The study examined the payout behavior of dividends for the industrial public shareholding companies of...

  • The Lifetime Consumption, Dividends, and Leverage Problem: An Application of Spreadsheet with Real Data. Ang, James S.; Hunsader, Kenneth J. // Financial Practice & Education;Fall/Winter96, Vol. 6 Issue 2, p30 

    This article discusses the use of spreadsheets to teach some of the more important but conceptually complex problems in finance. The multi-period problem includes those such as the lifetime utility, consumption or wealth maximization problem by the individual, the pursuit of long-term objectives...

  • The week's profits and dividends.  // Finance Week;2/21/2005, p33 

    The article presents a tabular representation of profits and dividends earned by various business enterprises in South Africa for the week ending February 21, 2005

  • Rise In Dividends Hits Record In Q1. VINCENT MAO // Investors Business Daily;4/10/2014, pB09 

    The outlook for Q1 earnings is not so hot.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics