Dividend policy and cash flows: a study in the light of the Theory of Signs

The present study investigates, from the perspective of the Theory of Signs, the relationship between the distribution of dividends and the future cash flows of 47 companies listed on the BM&FBovespa between 2007 and 2013, containing 329 observations. This is a study of descriptive and exploratory nature, with respect to their goals, and quantitative approach, to the extent that the data collected were subjected to statistical tests. Data analysis occurred using a multiple regression model, using a panel data analysis, adopting as the dependent variable ROA t (cash flow proxy) and as independent variables Div./Stock in t-1 (dividend policyproxy), and other control variables. In regression analysis, it was found that the variable Div./Stock cannot explain with significance the ROA, rejecting the hypothesis of the study. This research contributes to broaden the spectrum of research on the dividend policy, helping in the understanding of possible explanatory factors for the position of Brazilian companies with respect to the subject.