Dividend Policy and Product Market Competition

@article{Grullon2007DividendPA,
  title={Dividend Policy and Product Market Competition},
  author={Gustavo Grullon and Yelena Larkin and Roni Michaely},
  journal={POL: Other Resource Based Strategy \& Policy (Topic)},
  year={2007}
}
This paper investigates whether product market competition affects managers' decision to distribute cash to shareholders. Using a large sample of manufacturing firms, we find that firms in less competitive industries have significantly lower payout ratios than firms in more competitive markets. Further, we find that this negative relation between industry concentration levels and corporate payouts is much stronger among those firms whose overall characteristics make them (a) more likely to have… 
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