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Dividend payout ratio follows a Tweedie distribution: International evidence

Author

Listed:
  • Dragota, Victor
  • Pele, Daniel Traian
  • Yaseen, Hanaan
Abstract
Dividend policy is still a largely discussed issue in corporate finance literature. One of the main indicators used in analysing the dividend policy is the dividend payout ratio. Using a database consisting of 12,085 companies operating in 73 countries, for the period 2008-2014, the authors found that the dividend payout ratio follows a Tweedie distribution, and not a normal one. This distribution is stable over time for the entire analysed period. In addition, it describes the case of almost all the countries included in the sample. Thus, a better estimation of the probability that dividend payout ratio is lower or higher than a benchmark can be provided. Also, an analysis of dividend policy, distinctly considering payer versus non-payer companies, can offer additional important information for both practitioners and academics.

Suggested Citation

  • Dragota, Victor & Pele, Daniel Traian & Yaseen, Hanaan, 2019. "Dividend payout ratio follows a Tweedie distribution: International evidence," Economics Discussion Papers 2019-41, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201941
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    References listed on IDEAS

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    Cited by:

    1. Hanaan Yaseen, . "Does Social Progress Explain the Dividend Payout Decision?," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    2. Hanaan Yaseen, 2021. "Does Social Progress Explain the Dividend Payout Decision?," Prague Economic Papers, Prague University of Economics and Business, vol. 2021(1), pages 90-114.
    3. Victor Dragotă & Camelia Delcea, 2019. "How Long Does It Last to Systematically Make Bad Decisions? An Agent-Based Application for Dividend Policy," JRFM, MDPI, vol. 12(4), pages 1-34, November.
    4. Codruț-Florin Ivașcu, 2024. "Understanding Dividend Puzzle Using Machine Learning," Computational Economics, Springer;Society for Computational Economics, vol. 64(1), pages 161-179, July.

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    More about this item

    Keywords

    dividend policy; dividend payout ratio; Tweedie distribution;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C55 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Large Data Sets: Modeling and Analysis

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