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Dividend policy issues in the European pharmaceutical industry: new empirical evidence
This paper examines dividend policy issues in the European pharmaceutical industry. This sector is of particular interest because of the high research and development expenditures and the associated risks characterizing the business models of many firms in this industry. In fact, from the perspectiv...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer Berlin Heidelberg
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10198850/ https://www.ncbi.nlm.nih.gov/pubmed/36018442 http://dx.doi.org/10.1007/s10198-022-01510-5 |
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author | Basse, Tobias Schwarzbach, Christoph Graf von der Schulenburg, J.-Matthias |
author_facet | Basse, Tobias Schwarzbach, Christoph Graf von der Schulenburg, J.-Matthias |
author_sort | Basse, Tobias |
collection | PubMed |
description | This paper examines dividend policy issues in the European pharmaceutical industry. This sector is of particular interest because of the high research and development expenditures and the associated risks characterizing the business models of many firms in this industry. In fact, from the perspective of corporate finance theory, this is a particular challenge for the managers of these corporations that may also have implications for the dividend policy implemented by the firms forming this sector. Moreover, the level of internal financing and litigation risks also seem to be high in the pharmaceutical industry. These facts could also affect the payout policy of the firms. Employing techniques of time series analysis, there is no evidence for dividend signaling and clear evidence for dividend smoothing in the European pharmaceutical industry. Given that dividend increases under certain assumptions can negatively affect the firms' ability to finance new investments in general and research and development projects in particular, these results of our empirical investigations could be described as highly plausible. |
format | Online Article Text |
id | pubmed-10198850 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Springer Berlin Heidelberg |
record_format | MEDLINE/PubMed |
spelling | pubmed-101988502023-05-21 Dividend policy issues in the European pharmaceutical industry: new empirical evidence Basse, Tobias Schwarzbach, Christoph Graf von der Schulenburg, J.-Matthias Eur J Health Econ Original Paper This paper examines dividend policy issues in the European pharmaceutical industry. This sector is of particular interest because of the high research and development expenditures and the associated risks characterizing the business models of many firms in this industry. In fact, from the perspective of corporate finance theory, this is a particular challenge for the managers of these corporations that may also have implications for the dividend policy implemented by the firms forming this sector. Moreover, the level of internal financing and litigation risks also seem to be high in the pharmaceutical industry. These facts could also affect the payout policy of the firms. Employing techniques of time series analysis, there is no evidence for dividend signaling and clear evidence for dividend smoothing in the European pharmaceutical industry. Given that dividend increases under certain assumptions can negatively affect the firms' ability to finance new investments in general and research and development projects in particular, these results of our empirical investigations could be described as highly plausible. Springer Berlin Heidelberg 2022-08-26 2023 /pmc/articles/PMC10198850/ /pubmed/36018442 http://dx.doi.org/10.1007/s10198-022-01510-5 Text en © The Author(s) 2022 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) . |
spellingShingle | Original Paper Basse, Tobias Schwarzbach, Christoph Graf von der Schulenburg, J.-Matthias Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title | Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title_full | Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title_fullStr | Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title_full_unstemmed | Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title_short | Dividend policy issues in the European pharmaceutical industry: new empirical evidence |
title_sort | dividend policy issues in the european pharmaceutical industry: new empirical evidence |
topic | Original Paper |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10198850/ https://www.ncbi.nlm.nih.gov/pubmed/36018442 http://dx.doi.org/10.1007/s10198-022-01510-5 |
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