Dividend Puzzle

ISBN-13: 9783659183669 / Angielski / Miękka / 2012 / 80 str.

Josephat Lotto

Opis

While we are still in the dilemma yet to have a consensus in our understanding of dividends, the empirical modeling of dividend policy has overwhelmingly relied on the model proposed by Lintner (1956). Despite the huge literature in dividends, a number of key issues remain unresolved and clear guidelines for an "optimal payout policy" have not emerged. The aim of this manuscript is to assess whether Lintners dividend model supports dividend payments in corporate firms. In attempt to test whether the Lintners model explains the dividend payments of the corporate firms, the manuscript tries to answer the following questions; Do corporate firms have long-term target dividend payout ratios?, Do managers focus more on dividend changes than on absolute levels?, Does Dividend follow a smoother path than earnings? And Are managers reluctant to make changes to dividends that might have to be reversed?

O autorze

Dr Josephat Lotto is a lecturer at the Institute of Finance Management in Tanzania, East Africa. He holds PhD in Finance. Josephat started his PhD program in Leeds University, UK in January 2009 and completed it in the University of Strathclyde, UK in February 2012.His major writing and research areas are Corporate Governance and Corporate Finance.