THE PROPENSITY TO PAY DIVIDENDS: THE CASE OF THAI LISTED FIRMS

Abstract

This paper investigates thepropensity to pay dividends ofthe listedfirms in the developing capital market of Thailand. It adopts similar methodology to Fama and French (2001) and explores the propensity to pay dividends given the particular characteristics offirms. These characteristics include profitability, investment opportunities and size. Thefindings suggest that thepropensity to pay dividends slightly decline in pre-crisis, largely decline during crisis, but is resumed later in post-crisis period.