How Norwegian managers view dividend policy

We survey managers of Norwegian firms listed on the Oslo Stock Exchange about their views on dividend policy. The key factors that drive dividend policies are the level of current and expected future earnings, stability of earnings, current degree of financial leverage, and liquidity constraints. No significant correlation exists between the overall rankings of factors influencing dividend policy between Norwegian and U.S. managers. Norwegian managers express mixed views about whether a firm's dividend policy affects firm value. In general, management views provide support for the signaling hypothesis of payout policy but not the tax-preference explanation.