Chapter

When do Firms Change the Dividend Policy? <sup>*</sup>

Luis Correia Da Silva, Marc Goergen and Luc Renneboog

in Dividend Policy and Corporate Governance

Published in print February 2004 | ISBN: 9780199259304
Published online April 2004 | e-ISBN: 9780191600852 | DOI: http://dx.doi.org/10.1093/0199259305.003.0007
 When do Firms Change the Dividend Policy?  *

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Focuses on the flexibility of German dividends. The evidence obtained from analysing the data suggests that the dividend policy of German firms is much more flexible than that of UK or US firms. Contrary to what Lintner (1956) predicts, dividend are cut or omitted when profits are only temporarily, rather than permanently, depressed.

Keywords: dividend cuts; dividend flexibility; dividend increases; dividend omissions; dividend policy; Germany; Lintner model; UK; US

Chapter.  8547 words. 

Subjects: Financial Markets

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