Dividend policy: Empirical evidence from Greek firms

Abstract

For a sample of fifty firms that give the higher annual average dividend, using data from 1995 up to 2004, it was found that dividends are more important in the determination of share prices that are traded in the Greek market. As to aspects that influence dividend payout rations, it was found that the size, leverage, liquidity or growth do not influence it. The P/E ratio is not affected by the dividend payout ratio, but is significantly related to the market risk and growth of the firm, while stock return and dividend yield are once more unrelated.