Flexible firm-level dividends in Latin America

Henk von Eije, Abhinav Goyal () and Cal B. Muckley

Finance Research Letters, 2017, vol. 23, issue C, 133-136

Abstract: We show, for a sample of up to 757 industrial firms, in seven Latin American countries from 1994–2014, that these firms exhibit comparatively flexible payout behavior. Flexibility is defined in respect to (i) variability in firm payout status and amounts and (ii) parameters of the Lambrecht-Myers (2012) theory on the Lintner (1956) dividend equation. The results indicate that Latin American firms have higher speeds of adjustment and target payout ratios as well as lower rates of habit formation than found in the payout policies of United States firms. This note, thus, highlights an open question regarding conspicuously flexible payout policies in Latin American firms.

Keywords: Dividends; Flexibility; Latin America (search for similar items in EconPapers)
JEL-codes: G15 G32 G35 O16 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:23:y:2017:i:c:p:133-136

DOI: 10.1016/j.frl.2017.02.012

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