Dividend Policies in Practice: Is There an Industry Effect?
Quarterly Journal of Business and Economics, Vol. 32, No. 4, Autumn 1993
11 Pages Posted: 23 May 2006
This paper presents evidence concerning industry influences on the dividend decision after controlling for other firm-specific determinants known from prior research to affect payouts. Two sharply contrasting economic periods are examined: 1974 to 1980 and 1981 to 1987. Industry affiliation is found to possess significant explanatory power when modeling payout behavior at the individual firm level. The specific industries found to be significant are relatively few in number, however, and they do not exhibit persistence in their effect over time, for the most part. Consequently, only modest support is found for the industry-related dividend leadership effect posited by Lintner (1956).
Keywords: dividend policy, industry effect
JEL Classification: G35
Suggested Citation: Suggested Citation