Considering scenarios with taxation, then the share price of a company operating under TPT is lower than that under DPT, this difference becomes smaller under higher dividend payout ratios
Caption: Figure 12: Changes of relations of the dividend to net profit for last fiscal year, dividend payout ratios
, dividend yield ratios in the years 1993-2014 (%)
The banks' high dividend payout ratios
could be curbed if the Basel Committee on Banking Supervision's efforts to harmonise risk weights come into force because this could result in lower risk-weighted capital ratios and buffers at the Swedish banks.
High dividend payout ratios
have also contributed to this stagnation.
Some evidence suggests that there is significant variation in dividend payout ratios
among industries [Baker (1988); Michel (1979)].
Consequently, we also decreased dividend payout ratios
for most banks.
Using a relatively exogenous measure that incorporates state antitakeover laws and the differences-in-differences approach, our analysis indicates that dividend payout ratios
and propensities fall when managers are insulated from takeovers.
Following the expiration of buyout offers, the boards of directors of all interregional telecoms (IRs) (Far East Telecom excluded) have already set dividend payout ratios
for interim 9M10 dividends and set record dates for EGMs to approve payments.
Analysts at JPMorgan Chase said that European banks are more likely to lower dividend payout ratios
. New rules under Basel III are seeking to prevent another financial crisis by raising the quality of banks' capital.
Hexter, Langrehr, and Holder (1998) concluded that corporate focus is negatively related to dividend payout ratios
. The authors define a corporation as being focused when the firm's sales are attributable to a distinct business line.
Although dividend payouts are generally smaller for repurchasing firms, as compared to their industry peers, the dividend payout ratios
increase once the stock buyback program is over.
With the emergence of share repurchases and desire by firms to increase their financial flexibility, dividend payout ratios
, on average, are decreasing.