How Corporations Set Their Dividend Payout Ratios

Chase Financial Quarterly, pp. 69-83, Winter 1982

15 Pages Posted: 19 May 2006

See all articles by Michael S. Rozeff

Michael S. Rozeff

SUNY at Buffalo - Department of Financial & Managerial Economics

Abstract

This article provides an accessible account of why dividend policy matters and how companies may set dividend payout ratios. Important variables include rates of growth of revenues and/or internal investment, financial and operating leverage, and ownership structure.

Keywords: dividend policy, agency costs, ownership structure

JEL Classification: G32, G35

Suggested Citation

Rozeff, Michael S., How Corporations Set Their Dividend Payout Ratios. Available at SSRN: https://ssrn.com/abstract=903306

Michael S. Rozeff (Contact Author)

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

Buffalo, NY 14260
United States

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