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The impact of a financial crisis on the dividend payout of Dutch publicly listed firms

Bisschop, Bas (2014) The impact of a financial crisis on the dividend payout of Dutch publicly listed firms.

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Abstract:As a result of the global financial crisis of 2007 many firms all around the world encountered serious liquidity problems, whereas others went bankrupt; a serious decrease in profitability was seen and investments dropped to zero. This paper examines whether these negative corollaries of the financial crisis had any consequence for the dividend payout of Dutch publicly listed firms. It does so by assessing the dividend payout ratios of 78 Dutch publicly listed firms during the pre-crisis, crisis, and post-crisis period (2006-2012). First of all, mean values of dividend payout ratio turns out to be higher during the crisis period, opposed to the pre- and post-crisis period, the mean differences are not statistically significant. Secondly important variables and derterminants of dividend payout with their corresponding relationships are identified by means of related literature after which they are tested by means of the data provided by these firms. All relationships between dividend payout ratio and the independent variables profitabilty, firm size, growth opportunities, earned equity and liquidity show to be statistically insignificant in the results of both the correlation and regression analysis. However, the self-constructed dummy variable crisis did show to be close significant dunring the regression analysis, so that this paper found a substantial yet not statistical significant impact of the financial crisis on the dividend payout ratio of Dutch publicly listed firms.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
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