Danske udbyttedeterminanter før og efter finanskrisen

Kaare Ekmann Poulsen

Student thesis: Master thesis


The thesis aims to examine the factors, which affect dividend policy among Danish companies registered on the Copenhagen Stock Exchange. In particular the thesis wish to look at the determinants of dividend policy. This is done through a theoretical study of asymmetric information, the pecking order hypothesis and signal theories. This is, firstly, explored through research of former studies on the subject, that shows that there are many disagreements in the literature, the most important determinants of dividend policy, however, are earnings and the desire to have a continuously smooth dividend. The same conclusion is found by a study of the descriptions of the dividend policy in annual reports from 11 OMXC20 companies from 2005 until today. Furthermore the thesis finds that 6 out of the 11 companies decrease their annual DPS as a consequence of the recession given by the financial crisis while they later on heavily increase their DPS. This can be explained through signal motives and growing earnings. Finally, the thesis explores factors that can determine the level of DPS that is distributed by 86 non-financial Danish companies. This is explored through cross sectional and first difference regression. Based on the sample of the 86 Danish companies, it is found that there is a highly positive significant correlation between both level and changes in DPS and earnings and company growth respectively. It is also shown that the market value of the company has a significantly negative correlation to DPS.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
Publication date2012
Number of pages98