Abstract: | Purpose is to focus on the empirical patterns and regularity of dividend behaviour as it can be observed and explained. A survey of studies of empirically based models of dividend behaviour revealed the observed dividend policies of American and British firms (thirty companies). An analysis was made of their earnings/dividend relationships in the periods 1968-72 or 1969-73, according to different financial years ends. This data formed the 'backbone' of the study. Three approaches to the assessment of Rhodesian corporate dividend policy were used: 1. formal interviews, 2. a Lintner (1956) inspired study of corporate dividend payout ratios, 3. a Dobrovolsky (1951) - Florence (1959) type approach in which equity profitability (net income expressed as a percentage of net worth) was related to dividends expressed as a percentage of net worth. Bibl., diagram, list of the companies included in the study. |