Declining propensity to pay? A re-examination of the lifecycle theory

@inproceedings{Banyi2014DecliningPT,
  title={Declining propensity to pay? A re-examination of the lifecycle theory},
  author={Monica Banyi and Kathleen M. Kahle},
  year={2014}
}
Our results indicate that the declining propensity to pay is a function of the changing composition of firms over time and not a declining propensity in individual firms themselves. In particular, the propensity to pay is greater than expected following the 2003 dividend tax cut. The decade a firm went public is also a major determinant of its initial payout policy. Finally, while the strength of the relation between earned/contributed capital and payout propensity declines across IPO decades… CONTINUE READING