Dividend Payout Policy

This study examines the dividend payout determinants of travel and leisure companies in five Western European countries that are ranked among the world’s top 10 tourist destinations namely France Spain Italy Germany and the United Kingdom. The study analyzes the sector and carries out a comparative analysis of six sub-sectors: gambling hotels airlines recreational services restaurants and bars and travel and tourism. Hypotheses are developed focusing on three main theories of dividend policy namely “pecking order” “free cash flow” and “life-cycle” and theories. Panel data random-effects Tobit estimation methodology is used during a ten year period (2005- 2015).