Abstract

http://ssrn.com/abstract=889330
 
 

References (35)



 


 



On the Determinants and Dynamics of Dividend Policy


Sami Ben Naceur


ESSEC Tunis; International Monetary Fund (IMF)

Mohamed Goaied


IHEC Carthage

Amel Belanes


IHEC Carthage



Abstract:     
The authors study the dividend policy of 48 firms listed on the Tunisian Stock Exchange during 1996-2002 period. The study tests whether managers of Tunisian listed firms smooth their dividends or not. Beside, the study outlines the main determinants that may drive the dividend policy of Tunisian quoted firms. To answer the first question, we use Lintner's model in a dynamic setting. The results clearly demonstrate that Tunisian firms rely on both current earnings and past dividends to fix their dividend payment. However, the study shows that dividends tend to be more sensitive to current earnings than prior dividends. To find out the determinants of dividend policy, dynamic panel regressions have been performed. First, profitable firms with more stable earnings can afford larger free cash flows and thus, pay larger dividends. Furthermore, they distribute larger dividends whenever they are growing fast. However, neither the ownership concentration nor the financial leverage seems to have any impact on dividend policy in Tunisia. Besides, the liquidity of stock market and size negatively impacts the dividend payment. The results are somewhat robust to different specifications.

Number of Pages in PDF File: 28

Keywords: Dividend policy, dynamic panel data, corporate governance, partial adjustment model, dividend policy

JEL Classification: G32, G35

working papers series


Download This Paper

Date posted: March 14, 2006  

Suggested Citation

Ben Naceur, Sami and Goaied, Mohamed and Belanes, Amel, On the Determinants and Dynamics of Dividend Policy. Available at SSRN: http://ssrn.com/abstract=889330 or http://dx.doi.org/10.2139/ssrn.889330

Contact Information

Sami Ben Naceur (Contact Author)
ESSEC Tunis ( email )
4 rue Abou Zakaria El Hafsi
Montfleury, 1089
Tunisia
International Monetary Fund (IMF) ( email )
700 19th Street NW
Washington, DC 20431
United States
Mohamed Goaied
IHEC Carthage ( email )
SAHLOUL3
Carthage 2016
Tunisia
Amel Belanes
IHEC Carthage
SAHLOUL3
Carthage 2016
Tunisia
Feedback to SSRN


Paper statistics
Abstract Views: 7,042
Downloads: 1,806
Download Rank: 2,209
References:  35

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.375 seconds