Dividend policy in Nordic listed firms

Tor Brunzell, Eva Liljeblom, Anders Löflund and Mika Vaihekoski

Global Finance Journal, 2014, vol. 25, issue 2, 124-135

Abstract: In this paper we analyze the results from a survey among all publicly listed Nordic firms on their dividend payout policy. The results show that 72% of the Nordic companies have a specified dividend policy. Larger and more profitable companies are more likely to have a defined dividend policy in place. The dividend policy is mostly influenced by capital structure considerations and the outlook of future earnings. We also find that the likelihood for a firm having an explicit dividend policy is positively related to ownership concentration as well as to the presence of large long-term private or industrial owners. Our results support the use of defined dividend policies for agency or monitoring reasons rather than signaling reasons.

Keywords: Corporate finance; Dividend policy; Payout; NASDAQ OMX (search for similar items in EconPapers)
JEL-codes: G31 M21 O16 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:25:y:2014:i:2:p:124-135

DOI: 10.1016/j.gfj.2014.06.004

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