Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Dividend policy of German firms: a panel data analysis of partial adjustment models

Andres, Christian, Betzer, André, Goergen, Marc and Renneboog, Luc 2009. Dividend policy of German firms: a panel data analysis of partial adjustment models. Journal of Empirical Finance 16 (2) , pp. 175-187. 10.1016/j.jempfin.2008.08.002

Full text not available from this repository.

Abstract

German firms pay out a lower proportion of their cash flows, but a higher proportion of their published profits than UK and US firms. We estimate partial adjustment models and report two major findings. First, German firms base their dividend decisions on cash flows rather than published earnings as (i) published earnings do not correctly reflect performance because German firms retain parts of their earnings to build up legal reserves, (ii) German accounting is conservative, (iii) published earnings are subject to more smoothing than cash flows. Second, to the opposite of UK and US firms, German firms have more flexible dividend policies as they are willing to cut the dividend when profitability is only temporarily down.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Uncontrolled Keywords: Dividend policy ; Payout policy ; Target payout ratio ; Lintner dividend model ; Dividend smoothing ; Partial adjustment model ; Corporate governance
Publisher: Elsevier
ISSN: 0927-5398
Last Modified: 04 Jun 2017 03:33
URI: http://orca-mwe.cf.ac.uk/id/eprint/22720

Citation Data

Cited 76 times in Google Scholar. View in Google Scholar

Cited 46 times in Scopus. View in Scopus. Powered By Scopus® Data

Actions (repository staff only)

Edit Item Edit Item