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 (IfW Kiel)

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 (4)

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

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