Norwegian Managers Reveal Key Factors in Dividend Policy Decisions.
Managers of Norwegian firms were surveyed about their views on dividend policy. Key factors in making dividend decisions include current and future earnings, earnings stability, financial leverage, and liquidity. Norwegian and U.S. managers have different views on dividend policy factors. Norwegian managers are unsure if dividend policy affects firm value but see it as a signaling tool. There is no evidence supporting the idea that tax preferences influence dividend payments.