Catering and Dividend Policy: Evidence from the Netherlands over the Twentieth Century
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by earnings. The second epoch of Dutch dividend policy, until the 1980s, was characterized by dividend smoothing. Dividends were still strongly related to earnings, but because of shareholder’s preferences for stable dividend income, earnings changes are incorporated in dividends with a lag. Finally, dividend policy in the most recent episode is inspired by shareholder wealth maximization, based on agency and signalling motives. In this period, dividends have become largely decoupled from earnings.
|Number of pages||44|
|Journal||Financial History Review|
|Journal publication date||19 Aug 2019|
|Publication status||Accepted - 19 Aug 2019|