Dividend policy in Nordic listed firms

Tor Brunzell; Eva Liljeblom; Anders Löflund; Mika Vaihekoski

doi:10.1016/j.gfj.2014.06.004

Dividend policy in Nordic listed firms

Tor Brunzell, Eva Liljeblom, Anders Löflund, Mika Vaihekoski

Research output: Contribution to journal › Article › Scientific › peer-review

17 Citations (Scopus)

Abstract

In this paper we analyze the results from a survey among all publicly listed Nordic firms on their dividend payout policy. The results show that 72% of the Nordic companies have a specified dividend policy. Larger andmore profitable companies aremore likely to have a defined dividend policy in place. The dividend policy is mostly influenced by capital structure considerations and the outlook of future earnings. We also find that the likelihood for a firm having an explicit dividend policy is positively related to ownership concentration as well as to the presence of large long-term private or industrial owners. Our results
support the use of defined dividend policies for agency or monitoring reasons rather than signaling reasons.

Original language	English
Peer-reviewed scientific journal	Global Finance Journal
Volume	25
Issue number	2
Pages (from-to)	124-135
Number of pages	12
ISSN	1044-0283
DOIs	https://doi.org/10.1016/j.gfj.2014.06.004
Publication status	Published - 08.2014
MoE publication type	A1 Journal article - refereed

Keywords

512 Business and Management
Corporate finance
Dividend policy
NASDAQ OMX
Payout
KOTA2014

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Dividend policy in Nordic listed firms

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Keywords

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