Corporate Payouts, Macroeconomic Influences and Industry Effects

Lauren LoRe, Mahfuz Raihan


The objective of this study is to examine the dynamic nature of dividends and repurchases by examining the effect of industry group and macroeconomic factors on aggregate payout activity between 1985 and 2011. The article applies new tools that include a random-effect, a fixed-effect, and a Generalized Method of Moments (GMM) model. The results highlight new perspectives and support the need to interpret corporate payout determinants within the context of macroeconomic factors and industry group effects.

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