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Factors Influencing Dividend Policy Decisions of NASDAQ Firms

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  • Baker, H Kent
  • Veit, E Theodore
  • Powell, Gary E

Abstract

This study reports the results of a 1999 survey of Nasdaq-listed firms. Respondents provided information about the importance of 22 different factors that influence their dividend policy. Our results suggest that many managers of Nasdaq firms make dividend decisions consistent with Lintner's (1956) survey results and model. The results also show significant differences between the manager responses of financial and non-financial firms on nine of the 22 factors. This finding implies the presence of industry effects on dividend policy decisions. In general, the same factors that are important to Nasdaq firms are also important to NYSE firms. Copyright 2001 by MIT Press.

Suggested Citation

  • Baker, H Kent & Veit, E Theodore & Powell, Gary E, 2001. "Factors Influencing Dividend Policy Decisions of NASDAQ Firms," The Financial Review, Eastern Finance Association, vol. 36(3), pages 19-37, August.
  • Handle: RePEc:bla:finrev:v:36:y:2001:i:3:p:19-37
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    Cited by:

    1. Eva Liljeblom & Sabur Mollah & Patrik Rotter, 2015. "Do dividends signal future earnings in the Nordic stock markets?," Review of Quantitative Finance and Accounting, Springer, vol. 44(3), pages 493-511, April.
    2. Baker, H. Kent & Powell, Gary E. & Veit, E. Theodore, 2002. "Revisiting the dividend puzzle: Do all of the pieces now fit?," Review of Financial Economics, Elsevier, vol. 11(4), pages 241-261.
    3. Peter Chemwile & Gregory Namusonge & Mike Iravo, 2016. "Relationship between Strategic Environmental Relations Practice and Organizational Performance of Companies Listed in Nairobi Securities Exchange," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(10), pages 339-355, October.
    4. Tom Van Caneghem & Walter Aerts, 2011. "Intra-industry conformity in dividend policy," Managerial Finance, Emerald Group Publishing, vol. 37(6), pages 492-516, May.
    5. Darakhshan Younis & Attiya Yasmin Javid, 2014. "Market Imperfections and Dividend Policy Decisions of Manufacturing Sector of Pakistan," PIDE-Working Papers 2014:99, Pakistan Institute of Development Economics.
    6. Stuart Archbold & Elisabete F. Simões Vieira, 2010. "Corporate Dividend Policies in Bank-based and Market-based Systems: Survey Evidence from UK and Portugal," Portuguese Journal of Management Studies, ISEG, Universidade de Lisboa, vol. 0(1), pages 34-64.
    7. Al-Habashneh, Fedel & Shhateet, Mohammad & AL-Bdore, Jaber & Amareen, Zainah, 2014. "العوامل المؤثرة على سعر السهم السوقي في بورصة عمّان خلال الفترة 1984-2011
      [Factors affecting the price of the stock market in the Amman Stock Exchange during the period 1984-2011]
      ," MPRA Paper 57274, University Library of Munich, Germany.
    8. Gürtler, Marc & Hartmann, Nora, 2003. "Behavioral dividend policy," Working Papers FW04V1, Technische Universität Braunschweig, Institute of Finance.
    9. Baker, H. Kent & Smith, David M., 2006. "In search of a residual dividend policy," Review of Financial Economics, Elsevier, vol. 15(1), pages 1-18.
    10. Baker, H. Kent & Mukherjee, Tarun K. & Paskelian, Ohannes George, 2006. "How Norwegian managers view dividend policy," Global Finance Journal, Elsevier, vol. 17(1), pages 155-176, September.
    11. Neil L. Fargher & Robert A. Weigand, 2009. "Cross-sectional differences in the profits, returns and risk of firms initiating dividends," Managerial Finance, Emerald Group Publishing, vol. 35(6), pages 509-530, May.
    12. Baker, H. Kent & Dutta, Shantanu & Saadi, Samir, 2008. "Impact of financial and multinational operations on manager perceptions of dividends," Global Finance Journal, Elsevier, vol. 19(2), pages 171-186.
    13. Gürtler, Marc & Hartmann, Nora, 2004. "The equity premium puzzle and emotional asset pricing," Working Papers FW10V3, Technische Universität Braunschweig, Institute of Finance.
    14. Robert A. Weigand & H. Kent Baker, 2009. "Changing perspectives on distribution policy: The evolution from dividends to share repurchase," Managerial Finance, Emerald Group Publishing, vol. 35(6), pages 479-492, May.
    15. Jabbouri, Imad, 2016. "Determinants of corporate dividend policy in emerging markets: Evidence from MENA stock markets," Research in International Business and Finance, Elsevier, vol. 37(C), pages 283-298.
    16. Xuan Minh Nguyen & Quoc Trung Tran, 2016. "Dividend Smoothing and Signaling Under the Impact of the Global Financial Crisis: A Comparison of US and Southeast Asian Markets," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 118-123, November.

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