Discussion Paper

No. 2019-41 | July 02, 2019
Dividend payout ratio follows a Tweedie distribution: international evidence

Abstract

Dividend policy is still a largely discussed issue in corporate finance literature. One of the main indicators used in analysing the dividend policy is the dividend payout ratio. Using a database consisting of 12,085 companies operating in 73 countries, for the period 2008–2014, the authors found that the dividend payout ratio follows a Tweedie distribution, and not a normal one. This distribution is stable over time for the entire analysed period. In addition, it describes the case of almost all the countries included in the sample. Thus, a better estimation of the probability that dividend payout ratio is lower or higher than a benchmark can be provided. Also, an analysis of dividend policy, distinctly considering payer versus non-payer companies, can offer additional important information for both practitioners and academics.

Data Set

JEL Classification:

G35, C01, C51, C55

Assessment

  • Downloads: 142

Links

Cite As

Victor Dragota, Daniel Traian Pele, and Hanaan Yaseen (2019). Dividend payout ratio follows a Tweedie distribution: international evidence. Economics Discussion Papers, No 2019-41, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2019-41


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