A dividend function for Greek manufacturing

In this article an attempt is made to measure the amount of dividends allocated each year to shareholders in the large scale Greek manufacturing (establishments employing more than ten people).

The construction of a dividend function is made and the factors affecting dividend distribution in Greece are discussed.

While the original model provides for the effect of dividend taxation parameters – in addition to income considerations – in payout decisions, it is finally proved that a company's income is the sole main determinant of dividend distribution in Greek manufacturing.

The equilibrium income elasticity is found very close to one which indicates that dividends in Greece are proportional to profits.