Dividend payout ratio follows a Tweedie distribution: International evidence

Victor Dragotă, Daniel Traian Pele () and Hanaan Yaseen

No 2019-41, Economics Discussion Papers from Kiel Institute for the World Economy

Abstract: Dividend policy is still a largely discussed issue in corporate finance literature. One of the main indicators used in analysing the dividend policy is the dividend payout ratio. Using a database consisting of 12,085 companies operating in 73 countries, for the period 2008-2014, the authors found that the dividend payout ratio follows a Tweedie distribution, and not a normal one. This distribution is stable over time for the entire analysed period. In addition, it describes the case of almost all the countries included in the sample. Thus, a better estimation of the probability that dividend payout ratio is lower or higher than a benchmark can be provided. Also, an analysis of dividend policy, distinctly considering payer versus non-payer companies, can offer additional important information for both practitioners and academics.

Keywords: dividend policy; dividend payout ratio; Tweedie distribution (search for similar items in EconPapers)
JEL-codes: C01 C51 C55 G35 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.economics-ejournal.org/economics/discussionpapers/2019-41
https://www.econstor.eu/bitstream/10419/200115/1/1668596229.pdf (application/pdf)

Related works:
Journal Article: Dividend payout ratio follows a Tweedie distribution: International evidence (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201941

Access Statistics for this paper

More papers in Economics Discussion Papers from Kiel Institute for the World Economy Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().