Has the Propensity to Pay Dividends Declined? Evidence from the US Banking Sector

This article examines the propensity to pay dividends in U.S banking sector during 1973–2014. Although has been declining over 52 years of our sample period, banks are consistently more likely than non-financial firms. Using coefficients from logit models estimated early period forecast percentage dividend payers each subsequent year, we conclude that there a decline likelihood paying sector. However, started very high level as compared non-banking sectors. In addition, variables taken firm literature do not explain difference between actual and expected We also conduct exploratory analyses with bank-specific variables. newly included significantly related dividends, they