Industry Influence on Dividend Policy in a Firm-Specific Model

12 Pages Posted: 19 May 2006

See all articles by Michael S. Rozeff

Michael S. Rozeff

SUNY at Buffalo - Department of Financial & Managerial Economics

Date Written: September 1982

Abstract

Industry classification is known to be related to the dividend payouts of firms. This occurs because industry variables proxy for underlying factors (such as investment opportunities) that affect firms' payout policies and vary systematically across industries. Hence, a well-specified dividend payout model at the firm level should pre-empt any role for industry effects. This paper shows that industry effects can be reduced nearly to zero by employing a set of firm-specific variables to explain dividend payouts across firms.

Keywords: Dividend policy, payout, industry influence

JEL Classification: G35

Suggested Citation

Rozeff, Michael S., Industry Influence on Dividend Policy in a Firm-Specific Model (September 1982). Available at SSRN: https://ssrn.com/abstract=903221 or http://dx.doi.org/10.2139/ssrn.903221

Michael S. Rozeff (Contact Author)

SUNY at Buffalo - Department of Financial & Managerial Economics ( email )

Buffalo, NY 14260
United States

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