Abstract
This study examines the underlying factors which influence and cross-sectionally explain differences in the degree of dividend smoothing of firms. Differences in corporate dividend smoothing are documented by estimating the sensitivity of corporations' dividend payout ratios to changes in earnings. Theoretical determinants of dividend smoothing are investigated by cross-sectionally regressing the degree of dividend smoothing of firms against firm characteristics. The results show that riskier firms and smaller firms are more likely to smooth dividends. The empirical relationship between dividend smoothing and firm characteristics is much more significant for high growth firms, and varies considerably amongst sub-groups of the data that differ with respect to firm risk.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
