2024-11-0920120378-426610.1016/j.jbankfin.2011.10.0082-s2.0-84856277891http://dx.doi.org/10.1016/j.jbankfin.2011.10.008https://hdl.handle.net/20.500.14288/6449Thisstudyexaminesthepatternsinpayoutpoliciesworldwide.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.BusinessFinanceEconomicsJournal Article1872-6372301829600005Q2950