engleski

Influence of the size of a company on the dividend level

Important reason for dividends still staying an unresolved issue can be found in the complexity of factors that influence dividend policy. The aim of this study is to research the influence of the size on the dividend level. By using the data from 20 countries study shows significant and negative influence of the size of the company on the dividend level. The reasons for that can be found in the signaling theory and the stronger need of smaller companies to pay higher dividends as a compensation for the higher risk of their more volatile and less predictable cash flows.

dividend policy; size of a company; dividend level

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