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The Financial Flexibility Piece in the Dividend Puzzle - A Study of Firms Listed in Sweden

Sköld, Gustaf and Bengtsson, Magnus (2009)
Department of Business Administration
Abstract
The purpose of this master thesis is to examine in which way dividend policies are affected by managers strive for financial flexibility in listed Swedish firms. The underlying reason for the thesis is to attain a broader knowledge regarding dividend policies. Since present theories do not provide a satisfactory explanation or are not satisfactory tested, we find it relevant to perform a study within this field. Hypotheses are generated and the means of these tests are compared using independent sample t-test. Further, a panel data multivariate regression is used to control for time trends.
Theoretical framework consists of signaling theory regarding dividends, free cash flow hypothesis and financial flexibility.
Our study shows that... (More)
The purpose of this master thesis is to examine in which way dividend policies are affected by managers strive for financial flexibility in listed Swedish firms. The underlying reason for the thesis is to attain a broader knowledge regarding dividend policies. Since present theories do not provide a satisfactory explanation or are not satisfactory tested, we find it relevant to perform a study within this field. Hypotheses are generated and the means of these tests are compared using independent sample t-test. Further, a panel data multivariate regression is used to control for time trends.
Theoretical framework consists of signaling theory regarding dividends, free cash flow hypothesis and financial flexibility.
Our study shows that financial flexibility is a piece of the dividend puzzle and therefore managers who value financial flexibility do incorporate this when deciding dividend policy. (Less)
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author
Sköld, Gustaf and Bengtsson, Magnus
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Financial flexibility, dividends, dividend policy, Management of enterprises, Företagsledning, management
language
Swedish
id
1437391
date added to LUP
2009-06-04 00:00:00
date last changed
2012-04-02 17:39:20
@misc{1437391,
  abstract     = {The purpose of this master thesis is to examine in which way dividend policies are affected by managers strive for financial flexibility in listed Swedish firms. The underlying reason for the thesis is to attain a broader knowledge regarding dividend policies. Since present theories do not provide a satisfactory explanation or are not satisfactory tested, we find it relevant to perform a study within this field. Hypotheses are generated and the means of these tests are compared using independent sample t-test. Further, a panel data multivariate regression is used to control for time trends.
Theoretical framework consists of signaling theory regarding dividends, free cash flow hypothesis and financial flexibility.
Our study shows that financial flexibility is a piece of the dividend puzzle and therefore managers who value financial flexibility do incorporate this when deciding dividend policy.},
  author       = {Sköld, Gustaf and Bengtsson, Magnus},
  keyword      = {Financial flexibility,dividends,dividend policy,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {The Financial Flexibility Piece in the Dividend Puzzle - A Study of Firms Listed in Sweden},
  year         = {2009},
}