How Corporations Set Their Dividend Payout Ratios
Chase Financial Quarterly, pp. 69-83, Winter 1982
15 Pages Posted: 19 May 2006
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: Suggested Citation