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Purpose - The purpose of this paper is to examine cash dividends and stock repurchases in Canada from 1988 to 2006 and their relationship with earnings. Design/methodology/approach - The study uses logistic regressions to examine the likelihood of paying dividends and the timing of repurchases and OLS regressions to examine the level of payout. Findings - The fraction of dividend-paying firms declines from 1988 to 2001 and then slightly rebounds until the end of the sample period in 2006. Firm size, profitability, investment opportunities, and catering incentives explain the likelihood of paying dividends. Unlike US firms, Canadian repurchase-only firms do not become important payers in terms of either the percentage of firms or the level of payout. Dividend-only firms pay out significant amounts of cash. Firms with both regular dividends and regular repurchases pay out the largest amount. The payout of different groups of payers is determined by their earnings. Testing firms with both regular dividends and regular repurchases reveals that earnings, undervaluation, and availability of cash explains the timing of repurchases but earnings mainly explains the level of repurchases. Research limitations/implications - Canadian data are unavailable after 2006, which precludes investigating the potential implications of the financial crisis beginning in 2007. Originality/value - This is the first paper to analyze the evolution of the relationship between payout and earnings in Canada. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this research is to analyze survey results on the perception of dividends by managers of dividend-paying firms listed on the Toronto Stock Exchange (TSX). Design/methodology/approach – Managers from a sample of 291 dividend-paying TSX-listed Canadian firms were surveyed about their views on dividends. Findings – The most important factors influencing dividend policy are the level of current and expected future earnings, the stability of earnings, and the pattern of past dividends. Despite dramatic differences in the level of ownership concentration between Canadian and US firms, their corresponding managers' views on the determinants of dividends are similar. Canadian managers believe that dividend policy affects firm value but express little agreement with the theory of a residual dividend policy. They express strong support for the signaling and lifecycle explanations for paying dividends, but not for the bird-in-the-hand, tax-preference and dividend clientele, agency cost, or catering explanations. Compared with non-dividend payers, Canadian dividend-paying firms are significantly larger and more profitable, have greater cash reserves and ownership concentration, and have fewer growth opportunities. Originality/value – This study updates and expands previous survey-based research on dividends and provides new evidence from managers of Canadian firms. [ABSTRACT FROM AUTHOR]