Financial Constraints and the Sustainability of Dividend Payout Policy

This article investigates the relation between dividend payout policy and financial constraints, focusing on Italian SMEs 2015 2019 adopting credit ratings as a measure of access to external resources. According our findings, there is positive firm solvency payment dividends, suggesting that, when companies’ constraints are higher, we can expect lower odds that they will pay out dividends. Nevertheless, also evidence younger interested in signaling their expected profitability attract future investors support capital market.