Do Dividends Pay Dividends
(2005)Department of Business Administration
- Abstract
- The main intention with this thesis is to investigate the relationship between dividends and investments. We hypothesize that firms may be forced to cut back on investments if dividends are not curtailed in times of poor annual earnings. According to contemporary theories, we argue that firms may be reluctant to cut back on dividends even when annual earnings decline and the level of investments will consequently be determined by the financial mobility of companies. The survey is carried out by means of a quantitative analysis, which includes all firms quoted on the exchange of Stockholm from 1980 through 2000. On the contrary of previous research, we conclude that even firms with high dividends can be forced to curtail investments if... (More)
- The main intention with this thesis is to investigate the relationship between dividends and investments. We hypothesize that firms may be forced to cut back on investments if dividends are not curtailed in times of poor annual earnings. According to contemporary theories, we argue that firms may be reluctant to cut back on dividends even when annual earnings decline and the level of investments will consequently be determined by the financial mobility of companies. The survey is carried out by means of a quantitative analysis, which includes all firms quoted on the exchange of Stockholm from 1980 through 2000. On the contrary of previous research, we conclude that even firms with high dividends can be forced to curtail investments if payouts to shareholders are maintained or increased when companies are faced with a decline in annual earnings. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1351900
- author
- Nyman, Johan and Kantmark, Robert
- supervisor
- organization
- year
- 2005
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Dividends, Investments, Financing constraints, earnings, Management of enterprises, Företagsledning, management
- language
- Swedish
- id
- 1351900
- date added to LUP
- 2005-06-07 00:00:00
- date last changed
- 2012-04-02 15:32:06
@misc{1351900,
abstract = {{The main intention with this thesis is to investigate the relationship between dividends and investments. We hypothesize that firms may be forced to cut back on investments if dividends are not curtailed in times of poor annual earnings. According to contemporary theories, we argue that firms may be reluctant to cut back on dividends even when annual earnings decline and the level of investments will consequently be determined by the financial mobility of companies. The survey is carried out by means of a quantitative analysis, which includes all firms quoted on the exchange of Stockholm from 1980 through 2000. On the contrary of previous research, we conclude that even firms with high dividends can be forced to curtail investments if payouts to shareholders are maintained or increased when companies are faced with a decline in annual earnings.}},
author = {{Nyman, Johan and Kantmark, Robert}},
language = {{swe}},
note = {{Student Paper}},
title = {{Do Dividends Pay Dividends}},
year = {{2005}},
}