International evidence on payout ratio, returns. earnings and dividends

Ap Gwilym, Owain, Seaton, James, Suddason, Karina and Thomas, Stephen (2004) International evidence on payout ratio, returns. earnings and dividends. Southampton, UK, University of Southampton, 35pp. (Discussion Papers in Accounting & Finance, AF04-23).


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Recent US evidence has shown that, contrary to popular wisdom, the greater the proportion of earnings paid out as dividends, the greater the subsequent real earnings growth. We extend previous work by examining whether a similar relationship exists in eleven international markets as well as considering the role payout ratio plays in explaining future real dividend growth and returns. Higher payout ratios do indeed lead to higher real earnings growth, although not to higher real dividend growth. Despite the ability to anticipate earnings growth, we find limited use for this to predict future returns.

Item Type: Monograph (Discussion Paper)
Additional Information: ISSN 1356-3548
ISSNs: 1356-3548 (print)
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Divisions : University Structure - Pre August 2011 > School of Management
ePrint ID: 36388
Accepted Date and Publication Date:
2004Made publicly available
Date Deposited: 24 May 2006
Last Modified: 31 Mar 2016 12:04

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