Fulltext

Dividend Policy in Switzerland

Stacescu, Bogdan

In: Financial Markets and Portfolio Management, 2006, vol. 20, no. 2, p. 153-183

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    Titel
    • Dividend Policy in Switzerland
    Autor
    • Stacescu, Bogdan. Swiss Banking Institute, University of Zurich, Plattenstrasse 14, 8032, Zurich, Switzerland
    Dokumententyp
    • Postprint
    Sprache
    • Englisch
    Veröffentlicht in
    • Financial Markets and Portfolio Management, 2006, vol. 20, no. 2, p. 153-183. Kluwer Academic Publishers-Plenum Publishers; http://www.springer-ny.com
    Andere elektronische Ausgabe
    OAI-PMH-ID
    • oai:doc.rero.ch:322174
    Summary
    The paper examines dividend policy for a sample of Swiss companies. Several factors that determine cross-sectional variations in dividend policy - such as profitability, growth opportunities, and riskiness - are identified. Price volatility seems to stand out as the most significant factor. Looking at the relationship between dividends and earnings over time, dividend changes are more closely linked to past and current rather than future net income growth. However, they do confirm a persistent shift in the level of earnings. There is also a significant relationship between losses and dividend cuts. These findings suggest that it is the managers' reluctance to cut dividends that gives informational content to dividend changes