Dividend payouts of travel and leisure companies in Western Europe: An analysis of the determinants
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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 the subsectors. Panel data random-effects Tobit estimation methodology is used during a 10-year period (2005–2015). In addition to the traditional dividend determinants, sector and country-specific determinants such as leverage, asset intangibility, capital intensity (CI), and effective dividend tax rate are used. The estimation results demonstrate that company size, profitability, investment opportunities, and asset intangibility are positive drivers of dividend payout, whereas the leverage ratio and CI deter dividend payout. Additionally, the study provides international empirical evidence for the positive relationship between investment opportunities and dividend payout. This positive relationship, which is regarded as a puzzle, is unique for companies operating in the travel and leisure sector. The identification of unique dividend determinants and the recognition of differences among the subsectors help investors and managers to shape their investment and financial management decisions.
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Any increase above the optimal level of cash leads to financial issues.
“Firms should operate efficiently, whereby any increase above this level leads to financial issues (Bahreini & Adaoglu, 2018;Ghazouani, 2013;Jahanzeb et al., 2013).”
From Does the Efficiency of a Firm's Intellectual Capital and Working Capital Management Affect Its Performance? (2024) · cites this paper as Bahreini & Adaoglu, 2018
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“…should operate efficiently to achieve an optimal level of cash with the balance of its associated costs and benefits through WCM. Firms should operate efficiently, whereby any increase above this level leads to financial issues (Bahreini & Adaoglu, 2018; Ghazouani, 2013; Jahanzeb et al., 2013).”
- Authors
- Bahreini, M., & Adaoglu, C.
- Affiliations
- Eastern Mediterranean University (CY)
- Eastern Mediterranean University, Turkey
- Venue
- Tourism Economics
- Publisher
- SAGE Publications
- Published
- 2018-06-04
- Volume
- 24
- Issue
- 7
- Pages
- 801-820
- ISSN
- 1354-8166 (ISSN-L)
- 2044-0375
- OpenAlex
- W2806192445
- Cited by
- 16
- References
- 51
- Citations by year
- 2025: 2 · 2024: 2 · 2023: 3 · 2022: 3 · 2021: 4 · 2019: 2
- FWCI
- 4.41
- Type
- journal article
- Language
- en
- Open access
- green
- hdl.handle.net
- Licence
- Locations
- Tourism Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Eastern Mediterranean University Institutional Repository (Eastern Mediterranean University) (submittedVersion, cc-by-nc-nd)
- Topics
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
- Social Sciences › Business, Management and Accounting › Accounting › Financial Analysis and Corporate Governance
- Social Sciences › Business, Management and Accounting › Accounting › Corporate Taxation and Avoidance
- Keywords
- dividend payout, investment opportunities, capital intensity, leverage, firm size, profitability, Western Europe
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