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Dividend Policies of Privately Held Companies: Stand†Alone and Group Companies in Belgium

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  • An Rommens
  • Ludo Cuyvers
  • Marc Deloof

Abstract

This study examines the dividend policies of privately held Belgian companies, differentiating between stand†alone companies and those affiliated with a business group. We find that privately held companies typically do not pay dividends. Compared to public companies, they are less likely to pay dividends and they have lower dividend payouts. Our results also suggest that group companies pay more dividends than stand†alone companies, consistent with the hypothesis that tax†exempt group firms redistribute dividend payments on the group's internal capital market. Group companies pay higher dividends if they have minority shareholders.

Suggested Citation

  • An Rommens & Ludo Cuyvers & Marc Deloof, 2012. "Dividend Policies of Privately Held Companies: Stand†Alone and Group Companies in Belgium," European Financial Management, European Financial Management Association, vol. 18(5), pages 816-835, November.
    • Handle: RePEc:bla:eufman:v:18:y:2012:i:5:p:816-835
    DOI: 10.1111/j.1468-036X.2010.00554.x
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    References listed on IDEAS

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    1. Anneleen Michiels & Wim Voordeckers & Nadine Lybaert & Tensie Steijvers, 2015. "Dividends and family governance practices in private family firms," Small Business Economics, Springer, vol. 44(2), pages 299-314, February.

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