Financial Markets and Portfolio Management

, Volume 20, Issue 2, pp 153–183

Dividend Policy in Switzerland


DOI: 10.1007/s11408-006-0013-7

Cite this article as:
Stacescu, B. Fin Mkts Portfolio Mgmt (2006) 20: 153. doi:10.1007/s11408-006-0013-7


The paper examines dividend policy for a sample of Swiss companies. Several factors that determine cross-sectional variations in dividend policy – such as profitability, growth opportunities, and riskiness – are identified. Price volatility seems to stand out as the most significant factor. Looking at the relationship between dividends and earnings over time, dividend changes are more closely linked to past and current rather than future net income growth. However, they do confirm a persistent shift in the level of earnings. There is also a significant relationship between losses and dividend cuts. These findings suggest that it is the managers’ reluctance to cut dividends that gives informational content to dividend changes.


DividendsPayout policySignalingExpected earnings

JEL Classification Numbers


Copyright information

© Swiss Society for Financial Market Research 2006

Authors and Affiliations

  1. 1.Swiss Banking InstituteUniversity of ZurichZurichSwitzerland