DETERMINANTS OF DIVIDEND POLICY IN PORTUGAL
Keywords:
Capital Markets, Euronext, Dividends, Cash Flows, Panel Data.Abstract
Dividends abreast of investment and financing are regarded as the most important financial decisions in corporate life. However the determinants of dividend policy do not get consensus in the world of business finance. Black (1976) described the issue as "dividend puzzle" because it is a matter still unresolved. Theories like the theory of relevance of dividends, agency theory, and signaling theory or information asymmetry, have contributed arguments and financial determinants to explain the dividend policy followed by companies. In order to further contribute in solving this issue if test-major financial, non-financial companies listed on the Euronext Lisbon, the time period between 1997 and 2011. The conclusions found lead us to conclude that for the Portuguese capital market companies follow a policy of matching dividend relevance theory of dividends proposed by Lintner (1956).
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