IDEAS home Printed from https://ideas.repec.org/a/taf/eurjfi/v30y2024i5p457-480.html
   My bibliography  Save this article

Do dividend policies of privately held firms follow a life cycle?

Author

Listed:
  • Jovana Cadenovic
  • Marc Deloof
  • Ine Paeleman

Abstract

We investigate whether the dividend policies of privately held firms follow a predictable pattern that parallels their life cycles. Our analyses are based on a large sample of 113,599 Belgian privately held firms with 666,135 firm-year observations that cover the period from 2005 to 2018. We find that as the retained earnings of privately held firms increase, they are more likely to pay dividends and to pay higher amounts. We find a significant effect of retained earnings on dividend policy in a subsample of established firms, but not in a subsample of young firms. Firms are also more likely to initiate (omit) a dividend as their retained earnings increase (decrease) over time. Overall, our results support the life cycle theory in the context of privately held firms.

Suggested Citation

  • Jovana Cadenovic & Marc Deloof & Ine Paeleman, 2024. "Do dividend policies of privately held firms follow a life cycle?," The European Journal of Finance, Taylor & Francis Journals, vol. 30(5), pages 457-480, March.
    • Handle: RePEc:taf:eurjfi:v:30:y:2024:i:5:p:457-480
    DOI: 10.1080/1351847X.2023.2206523
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1351847X.2023.2206523
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1351847X.2023.2206523?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Noha Said Mohamed Gabr & Rawan Hamed Abd Elkhaliq Mohamed, 2024. "Retained Earnings and Dividends in Real Estate Sector in Egypt," International Real Estate Review, Global Social Science Institute, vol. 27(2), pages 249-274.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:eurjfi:v:30:y:2024:i:5:p:457-480. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/REJF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.