Publication: Yes, dividends are disappearing: worldwide evidence
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Fatemi, Ali
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Abstract
Thisstudyexaminesthepatternsinpayoutpoliciesworldwide.Utilizingdatafromasampleofmorethan 17,000companiesfrom33differentcountries,wefindevidenceinsupportofasignificantworldwide declineinthepropensitytopaydividends.Mostofthedeclineisduetothepayoutpoliciesofsmaller andlessprofitablefirmswithcomparativelymoreinvestmentopportunities.Wefindthat largerfirms, thosewithhigherprofitability, andfirmswithlowgrowthopportunitieshaveagreaterpropensityto paydividends.Theproportionofdividendpayersvariessubstantiallyacrossindustriesaswell.However, theproportionoffirmspayingdividendshasdeclinedovertime,evenafterfirms’ characteristicshave beencontrolledfor.Moreover, aggregatedividendsarehighlyconcentratedinthat theyarepaidonly byasmallgroupoffirms.Ourfindingsindicatethattherehasbeenasignificantdeclineintheaverage dividendpayoutratiosovertheyears.Thedeclineinthemeandividendpayoutratiosaswellastheproportionofpayersismuchmorepronouncedincivil lawcountries.
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Subject
Business, Finance, Economics
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Has Part
Source
Journal of Banking & Finance
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DOI
10.1016/j.jbankfin.2011.10.008