Table 3 also provides summary statistics for four

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Table 3 also provides summary statistics for four measures of dividend pol- icy. In addition to dividend yield and the dividend payout ratio, it reports statistics for aggregate dividends divided by total assets and by stockholders equity. The latter two measures are reported to avoid pricing problems that may exist with the
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Emerging Market Firms 377 TABLE 3. Basic Financial Data. United Korea India Malaysia Thailand Zimbabwe Jordan Pakistan Turkey States Tangibility 0.49 0.40 0.57 0.38 0.44 0.51 0.38 0.41 0.35 0.50 0.38 0.56 0.37 0.41 0.50 0.36 0.39 0.31 0.15 0.17 0.22 0.18 0.13 0.24 0.20 0.19 0.15 Busrisk 0.03 0.05 0.05 0.04 0.08 0.08 0.06 0.05 0.04 0.03 0.04 0.04 0.03 0.05 0.07 0.06 0.05 0.03 0.02 0.03 0.04 0.04 0.14 0.05 0.04 0.03 0.03 Size 0.12 0.14 0.12 0.13 0.10 0.08 0.06 0.10 0.07 0.12 0.14 0.11 0.13 0.10 0.07 0.06 0.10 0.07 0.01 0.01 0.01 0.01 0.01 0.02 0.01 0.02 0.01 Debt ratio 0.73 0.67 0.42 0.58 0.42 0.46 0.66 0.59 0.41 0.75 0.69 0.42 0.59 0.42 0.45 0.66 0.61 0.41 0.12 0.13 0.21 0.20 0.13 0.19 0.19 0.17 0.12 Coverage 2.46 5.77 20.96 13.36 20.33 N/a 5.25 11.21 12.90 1.48 2.27 6.11 5.60 7.27 N/a 1.16 2.49 5.85 5.44 15.38 31.47 20.03 29.51 N/a 13.32 23.48 28.74 Current 1.16 1.23 1.66 N/a N/a 1.80 1.28 1.44 2.36 1.07 1.18 1.36 N/a N/a 1.34 1.15 1.27 2.23 0.50 0.37 1.18 N/a N/a 1.84 0.68 0.76 0.98 ROE 0.08 0.16 0.06 0.16 0.13 0.07 0.21 0.23 0.12 0.08 0.15 0.07 0.15 0.13 0.08 0.19 0.22 0.13 0.11 0.11 0.19 0.26 0.13 0.31 0.48 0.18 0.16 M/B 0.75 1.42 2.32 2.47 0.58 1.42 0.92 1.90 1.86 0.58 1.13 1.85 1.82 0.39 1.19 0.86 1.44 1.53 0.67 1.17 1.81 2.07 0.62 0.68 0.75 1.25 1.33 Payout 0.42 0.35 0.50 0.43 0.35 0.40 0.27 0.60 0.33 0.33 0.30 0.40 0.44 0.36 0.44 0.00 0.62 0.31 0.42 0.41 0.86 0.40 0.33 0.39 0.88 0.41 0.84 Yield 0.13 0.04 0.02 0.04 0.10 0.04 0.06 0.15 0.05 0.04 0.04 0.02 0.03 0.10 0.04 0.06 0.13 0.04 0.25 0.04 0.02 0.04 0.08 0.04 0.05 0.13 0.04 Div/TA 0.01 0.02 0.04 0.06 0.05 0.04 0.03 0.06 0.02 0.01 0.02 0.03 0.05 0.04 0.04 0.00 0.06 0.02 0.01 0.05 0.07 0.04 0.04 0.05 0.09 0.06 0.02 Div/BV 0.03 0.05 0.04 0.08 0.05 0.06 0.05 0.16 0.05 0.03 0.05 0.03 0.07 0.04 0.06 0.00 0.14 0.04 0.02 0.05 0.05 0.10 0.05 0.07 0.18 0.14 0.03 Note: The individual ratios for each country are the average, the median, and the standard deviation of each value across all the firms in the sample. N/a is not available. Tangibility is the tangibility of assets: total assets minus current assets dividend by total assets. Busrisk is the standard deviation of the return on investment. Size is the natural logarithm of sales in local currency. The debt ratio is total liabilities divided by total assets. The current ratio is current assets divided by current liabilities. ROE is the net income divided by stockholder s equity. M/B is the market value of the common stock divided by its book value. Coverage is the interest coverage ratio, EBIT/I. Payout is the dividend per share divided by the earnings per share. Yield is the dividend per share divided by the average of the high and low price for the year. Div/TA is the aggregate dividends divided by total assets. Div/BV is the aggregate dividends divided by the book value of stockholder s equity.
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378 The Journal of Financial Research dividend yield measure and to avoid the instability of the payout ratio when earnings are low. The average dividend payout ratio for the U.S. sample is 33%, and the medianis31%.Themediandividendpayoutratiosfortheeightdevelopingcountries are similar to those for the United States, averaging 36% across all eight countries. The significant outliers are Turkey with a median payout of 62% and Pakistan with a median payout of 0%. In Turkey, firms are constrained to provide dividends equal to the larger of 50% of earnings or 20% of paid-in capital, up to 75% of earnings.
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