Publication
Title
The long-run persistence in dividend policy
Author
Abstract
Dividend policy is not set de novo each year, but dividends are smoothed from one year to the next, leading to a short-term persistent component. In this paper, we investigate whether there is also long-run persistence in dividend policy, by using a unique sample of firms listed on the Brussels Stock Exchange since 1824. We show that dividend smoothing leads to a long-term persistent component in dividend policy, as we find evidence that the initial dividend policy, as measured in the first calendar year after listing, has a long-lasting effect on future dividend policy. Although this effect persists for many years, it fades away over time. When this happens, a new slowly changing dividend policy emerges.
Language
English
Source (journal)
Cliometrica. - Heidelberg, 2007, currens
Publication
Heidelberg : Springer heidelberg , 2024
ISSN
1863-2505 [print]
1863-2513 [online]
DOI
10.1007/S11698-023-00279-8
Volume/pages
(2024) , 31 p.
ISI
001153490400001
Full text (Publisher's DOI)
Full text (open access)
The author-created version that incorporates referee comments and is the accepted for publication version Available from 01.02.2025
Full text (publisher's version - intranet only)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Web of Science
Record
Identifier
Creation 04.03.2024
Last edited 09.04.2024
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