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Investigating The Dividend Policy Determinants Using A Poisson Regression

Author

Listed:
  • LEONIDA, Ionel

    (Centre for Financial and Monetary Research “Victor Slavescu”, N.I.E.R., Romanian Academy, Bucharest, Romania Author-Name: CEPOI, Cosmin Octavian
    Centre for Financial and Monetary Research “Victor Slavescu”, N.I.E.R., Romanian Academy, Bucharest, Romania)

Abstract

Using a sample of 4815 companies operating in various sectors of activity in EU countries, we investigate the firm-related factors influencing the frequency of dividend payments. Using a Poisson regression, we bring strong empirical evidence that the frequency of dividends payouts is influenced by the size of the firm, its profitability, indebtness and ownership structure. Furthermore, we find inconclusive results relating the frequency of the dividend payouts to the liquidity of the firm. When accounting for overdispersion problems via a Zero-Inflated Poisson (ZIP), the coefficients remain stable as sing and statistical significance, but their impact is diminished.

Suggested Citation

  • LEONIDA, Ionel, 2022. "Investigating The Dividend Policy Determinants Using A Poisson Regression," Journal of Financial and Monetary Economics, Centre of Financial and Monetary Research "Victor Slavescu", vol. 10(1), pages 108-113, October.
    • Handle: RePEc:vls:rojfme:v:10:y:2022:i:1:p:108-113
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    References listed on IDEAS

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    1. Ye, Dezhu & Deng, Jie & Liu, Yi & Szewczyk, Samuel H. & Chen, Xiao, 2019. "Does board gender diversity increase dividend payouts? Analysis of global evidence," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 1-26.
    2. Beladi, Hamid & Hu, May & Li, Silei & Yang, JingJing, 2022. "Dual-class share structure on the dividend payout policy: Evidence from China Concepts Stocks," International Review of Financial Analysis, Elsevier, vol. 82(C).
    3. Jansakul, N. & Hinde, J. P., 2002. "Score Tests for Zero-Inflated Poisson Models," Computational Statistics & Data Analysis, Elsevier, vol. 40(1), pages 75-96, July.
    4. Cameron, A. Colin & Trivedi, Pravin K., 1990. "Regression-based tests for overdispersion in the Poisson model," Journal of Econometrics, Elsevier, vol. 46(3), pages 347-364, December.
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    More about this item

    Keywords

    Dividend policy; Poisson regression; Overdispersion.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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