Flexible firm-level dividends in Latin America

von Eije, Henk, Goyal, Abhinav ORCID: 0000-0002-9859-2117 and Muckley, Cal B (2017) Flexible firm-level dividends in Latin America. FINANCE RESEARCH LETTERS, 23. pp. 133-136.

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Abstract

We show, for a sample of up to 757 industrial firms, in seven Latin American countries from 1994–2014, that these firms exhibit comparatively flexible payout behavior. Flexibility is defined in respect to (i) variability in firm payout status and amounts and (ii) parameters of the Lambrecht-Myers (2012) theory on the Lintner (1956) dividend equation. The results indicate that Latin American firms have higher speeds of adjustment and target payout ratios as well as lower rates of habit formation than found in the payout policies of United States firms. This note, thus, highlights an open question regarding conspicuously flexible payout policies in Latin American firms.

Item Type:	Article
Additional Information:	Source info: Finance Research Letters, Forthcoming
Uncontrolled Keywords:	Dividends, Flexibility, Latin America
Depositing User:	Symplectic Admin
Date Deposited:	14 Nov 2017 08:10
Last Modified:	19 Jan 2023 06:50
DOI:	10.1016/j.frl.2017.02.012
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3012087