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Do dividends signal future earnings in the Nordic stock markets?

Liljeblom, Eva; Mollah, Sabur; Rotter, Patrik


Eva Liljeblom

Sabur Mollah

Patrik Rotter


We study the informational content of dividends on three Nordic civil law markets, where other simultaneous but blurring motives for dividends may be weaker. Using aggregate data on real earnings per share and payout ratios, long time series from 1969 to 2010, and methodologies which address problems of endogeneity, non-stationarity and autocorrelation (including a Vector Error Correction Model approach), we find evidence on dividend signaling in Nordic markets. However, we also find heterogeneity in the relationship between dividends and earnings on markets similar in many respects, suggesting that even small variations in the institutional surroundings may be important for the results.


Liljeblom, E., Mollah, S., & Rotter, P. (2015). Do dividends signal future earnings in the Nordic stock markets?. Review of Quantitative Finance and Accounting, 44(3), 493-511.

Acceptance Date Jul 3, 2013
Online Publication Date Nov 7, 2013
Publication Date Apr 1, 2015
Deposit Date Nov 22, 2016
Publicly Available Date Nov 22, 2016
Journal Review of quantitative finance and accounting
Print ISSN 0924-865X
Electronic ISSN 1573-7179
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Volume 44
Issue 3
Pages 493-511
Keywords Dividend signaling; Information content; Nordic markets; Vector error correction model
Public URL
Publisher URL
Copyright Statement ©2016 Springer
Additional Information This is the author's accepted manuscript of an article published in: Review of quantitative finance and accounting, 2015, v.44.


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