Does gross financial leverage influence firms' dividend policy? An empirical analysis in the Italian market.

Francesco BAVAGNOLI, Giacomo Buchi, Maurizio COMOLI, Alberto Iodice

Risultato della ricerca: Contributo su rivistaArticolo in rivista

Abstract

How companies return their dividends is a matter of interest for many traders and academic researchers. The goal of this paper is to show how quantitative easing and level of corporate leverage affect companies’ dividend policy. Our main interest concerns the possible relationship between the gross financial debt to Ebitda ratio and dividend payout. In this study we consider 10 Italian listed companies (both public and private) from different and not related sectors. Considering a period of four years (2012-2015), after famous President Draghi’s “Whatever it takes”, we test our hypothesis through a data-panel regression. The results highlight no significant relationship between level of debt and dividend payout ratio and potentially highlight the Board of Directors crucial role in managing dividend choices.
Lingua originaleInglese
pagine (da-a)449-466
Numero di pagine18
RivistaIL NUOVO DIRITTO DELLE SOCIETÀ
Volume16
Numero di pubblicazione2
Stato di pubblicazionePubblicato - 1 gen 2018

Keywords

  • Dividend policy - Leverage - Listed companies

Fingerprint

Entra nei temi di ricerca di 'Does gross financial leverage influence firms' dividend policy? An empirical analysis in the Italian market.'. Insieme formano una fingerprint unica.

Cita questo