Research-Thesis: The Determinants of Dividend Payment in Privately Held Firms: Evidence from Belgian Firms.

Abstract

This thesis explores the factors that shape dividend policy in privately held firms in Belgium. It focuses on how profitability, firm size, growth opportunities, risk, and liquidity affect dividend payments. Using regression and variance decomposition analysis, the study assesses both the influence and relative importance of these variables. The results show that profitability, size, and liquidity are the most important drivers of dividend decisions, while risk has a negative effect, suggesting that riskier firms tend to retain earnings rather than distribute them. Overall, the findings provide evidence that dividend policy in Belgian private firms is shaped by a combination of financial characteristics, offering useful insights for managers and researchers alike.