Note(s): This table presents the results of the effect of high earnings volatility. High earnings volatility is represented by a dummy variable, where the value is 1 if the three-year standard deviation of the ROA is higher than the median, and 0 otherwise. Ln (1 + Dividend) is the dependent variable in specification 2, and Dividend Payout Ratio is the dependent variable in specification 3. Year and industry fixed effects are taken into account in both specifications.  Appendix Table A1 provides an explanation of each variable. Robust standard errors, clustered at the firm level, are in parentheses. Significance at the 1%, 5%, and 10% levels is denoted by the symbols ***, **, and *, respectively