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Financial Crisis and Dividends

Atul K. Saxena

Georgia Gwinnet College

Abstract

This paper re-examines Michael Rozeff’s study of 1982 on variables affecting dividend payout ratios using data surrounding the Great Recession of 2008-2009. The research suggests that his findings do not necessarily translate into periods of financial distress. However, there are two variables that are consistent with his findings, namely past and future growth of firms. Results are mostly consistent with Boban (2011) conducted on a different dataset from the same time period.