The Impact of Changing Firm Characteristics and Proclivity on Dividend Payment Decision: An Empirical Analysis of the United Kingdom and Japan
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School of Business |
Bachelor's thesis
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Authors
Date
2023
Department
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
28
Series
Abstract
This thesis decomposes the changes in the percentage of dividend-paying firms in the United Kingdom and Japan between 1983 and 2021. Building on the research of Michaely and Moin (2022), the impact of firm characteristics and proclivity to pay dividends is analyzed. The results indicate that larger and more profitable firms are more likely to pay dividends, while firms with greater earnings volatility are less likely to pay dividends. In the United Kingdom, changes in firm characteristics and proclivity to pay each drive roughly half of the decrease. In Japan, while the percentage of dividend-paying firms has decreased, firm characteristics suggest that the decrease should have been more significant, indicating that firms have become more inclined to pay dividends over the period.Description
Thesis advisor
Keloharju, MattiKeywords
dividends, payout policy, firm characteristics, dividend decrease, dividend dissapearance