University of Twente Student Theses
Differences and Similarities in company specific determinants for payout policies in the consumer staples and the consumer discretionary sectors in Europe and the US
Rittinghaus, A.J.C. (2024) Differences and Similarities in company specific determinants for payout policies in the consumer staples and the consumer discretionary sectors in Europe and the US.
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| Abstract: | This thesis studies determinants for total payouts, the combined spending of cash dividends and share repurchases, of companies in both consumer sectors, discretionary and cyclical, in the US and Europe. Furthermore, also the individual components of total payout are looked at with the help of the same model to find out whether one or the other is explained better by the variables chosen. The purpose of the analysis was to find significant influences on payout decisions based on the companies’ size, growth opportunities, profitability, debt levels, ownership concentration, and age. The method used is a multiple linear regression analysis that is fed by yearly data over a time period of two business cycles. The companies chosen stem from the indices of the corresponding sectors. Both the companies’ sizes and their price-to-book value, which proxies their future growth opportunities, were statistically significant for all six regression analyses conducted in this thesis. The companies’ growth opportunities impacted the payout decisions differently from what had been expected, namely in a positive instead of a negative way. In the field of total payout debt and ownership concentration were found to be statistically significant for at least one of the two sectors. For the dividend payout all variables were statistically significant for at least one sector, and for share repurchases besides size and growth opportunities only the ownership concentration has proven to have a statistically significant impact. Conclusions drawn in this thesis are that further growth opportunities do not have any negative influence on payouts in the consumer sectors, and that the linear regression model has the highest explained variance and the largest number of statistically significant variables with the model used here. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/99837 |
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