Analysis of the policy of dividend payout in Chilean firms

This article analyzes the dividend payout ratio, remembering that Chilean firms are characterized by mandatory dividends, a strong ownership structure, growth opportunities, and institutional investors. This research was carried out for the 2001-2007 period using multiple linear regressions with variable selection by means of a stepwise approach and parameter estimation by maximum likelihood. We found evidence of the use of the dividend payout ratio to provide information about the future projects of a company and the fair treatment of shareholders. It also highlights the control exerted on the part of institutional investors.