ORCID

Abstract

The purpose of this research is to investigate dividend policy, including its impact on share prices of transportation providers and related service companies, by comparing generalized regression neural networks with conventional regressions. Our results using regressions reveal that for Europe and for the US and Canada the market-to-book-value, as a surrogate for growth opportunities, fulfils expectations of pressures on dividends leading to a negative association with dividend yields in accordance with the pecking order theory. Neural network analysis indicates a clear role for growth opportunities for the US and Canada pointing to an underlying confidence on the part of transportation companies in their own internal policies. Finally, risk is rewarded especially in Europe.

DOI

10.1016/j.intfin.2012.04.008

Publication Date

2012-10-01

Publication Title

Journal of International Financial Markets, Institutions and Money

Volume

22

Issue

4

ISSN

1042-4431

Organisational Unit

Plymouth Business School

Keywords

Dividend yield, Retention, Market-to-book value, Neural networks, Transportation

First Page

796

Last Page

813

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