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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).

Record type: Monograph (Discussion Paper)


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.

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Published date: 2004
Additional Information: ISSN 1356-3548


Local EPrints ID: 36388
ISSN: 1356-3548
PURE UUID: 796d7daf-8e81-4c5a-b8dd-f8e02f49e464

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Date deposited: 24 May 2006
Last modified: 17 Jul 2017 15:45

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Author: Owain Ap Gwilym
Author: James Seaton
Author: Karina Suddason
Author: Stephen Thomas

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