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Determinants of Dividend Policy in the U.S. Utilities Sector

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  • Andrei Costin Neacsu
  • George Alexandru Neacsu
  • Danut Georgian Mihai
  • Catalina Ioana Toader

Abstract

This paper examines the determinants of dividend policy in the U.S. utilities sector using annual firm-level panel data for the period 2011 - 2024. The analysis combines theoretical perspectives on dividend distribution with empirical evidence from fixed-effects econometric models. Three measures of dividend policy are considered as dependent variables: dividends per share, dividends over assets, and dividends over equity. The explanatory variables include firm size, leverage, operating cash flow, sales growth, and market-to-book ratio with the main financial ratios winsorized to limit the influence of extreme observations. The results show that the relevance of dividend determinants depends on how dividend policy is measured. Firm size is the most robust determinant of dividends per share, while operating cash flow scaled by assets is more relevant for dividends over assets. However, the dividends-over-equity specification does not provide statistically significant evidence for the selected firm-level variables.

Suggested Citation

  • Andrei Costin Neacsu & George Alexandru Neacsu & Danut Georgian Mihai & Catalina Ioana Toader, 2026. "Determinants of Dividend Policy in the U.S. Utilities Sector," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 18(1), pages 83-91, June.
    • Handle: RePEc:rfb:journl:v:18:y:2026:i:1:p:83-91
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