Abstract:
The study aims to find out whether the disappearing dividends, the decline in the number
of dividend payers, the size effect and the increasing dividend/earnings concentration found
in several developed and emerging markets exist among the industrials traded in the ISE. The
study also analyzes the effects of the reinstatement of mandatory dividend policy in 2003.
Using univariate statistical tests, we detect a size effect as well as a high level but stable dividend/earnings
concentration. We find a significant decrease in the number of dividend payers,
but we also detect an increasing level of real/nominal dividends driven by the high dividend/earnings
concentration and the increasing level of earnings. The reinstatement of the
mandatory dividend policy regulation in 2003 has not been successful in changing the payout
policy of industrials.
