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The Analysis of Non-Linear Dividend Hypothesis: International Evidence

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Listed:
  • Ionel Bostan
  • Marilen-Gabriel Pirtea
  • Claudiu Boțoc
  • Eugen-Axel Mihancea

Abstract

The main aim of this paper is to examine the non-linear relationship between financial performance and level of dividends for a recent period and an international sample. Subsidiary, we have included some firm characteristics to revisit their influence over the level of dividends paid. Using both GMM and Quantile Regression, we found that there is a non-linear relationship between the level of dividends paid and financial performance. Among the dividend theories, the signaling effect theory, the lifecycle theory, and the catering theory of dividends are supported through our results.

Suggested Citation

  • Ionel Bostan & Marilen-Gabriel Pirtea & Claudiu Boțoc & Eugen-Axel Mihancea, 2023. "The Analysis of Non-Linear Dividend Hypothesis: International Evidence," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 59(9), pages 2882-2893, July.
    • Handle: RePEc:mes:emfitr:v:59:y:2023:i:9:p:2882-2893
    DOI: 10.1080/1540496X.2023.2202795
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    References listed on IDEAS

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