The Factors that Affect the Dividend Policy of the Greek Listed Firms Prior to the Economic Crisis: A Comparison to Nyse, Nasdaq, Norwegian and U.K. Firms"

Abstract

This study presents, analyzes and compares the factors affecting the dividend policy of the Greek listed firms, prior to the Greek economic crises, to NYSE, NASDAQ, Norwegian and U.K. firms. Our empirical investigation has a dual objective, to record the dividend policy of the Greek firms and to compare their dividend choices to other, more financially mature, markets. We sent to all Athens Exchange listed firms a detailed questionnaire concerning their dividend choices. Our findings proved to be very interesting since the average listed Greek firm shares the same opinion with the average firm of the compared studies in the following areas: Price affection, risk bearing, past dividends’ pattern and agency costs. Some of our findings proved to be quite close with some of the results of the compared studies in the following subjects: The sector of the company, the target payout ratio, the financing ability and the information content of dividends. Finally, some of our findings are in contradiction to some of the results of the previous studies, these are: The impact of taxation on dividends and the legislation framework.