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Profits, dividends and industry restructuring: The Swedish paper and pulp industry between 1945 and 1977
Umeå University, Faculty of Social Sciences, Department of Geography and Economic History, Economic history.
Umeå University, Faculty of Social Sciences, Department of Geography and Economic History, Economic history.
Umeå University, Faculty of Social Sciences, Department of Geography and Economic History, Economic and social geography.ORCID iD: 0000-0003-3570-7690
2016 (English)In: Scandinavian Economic History Review, ISSN 0358-5522, E-ISSN 1750-2837Article in journal (Refereed) Accepted
Abstract [en]

This paper explores the role of profit distribution in the restructuring of the Swedish paper and pulp industry between 1945 and 1977. In addressing this issue, we will draw on the life-cycle theory and market imperfection arguments to examine whether the less profitable firms shared more of their profits as dividends, or remained on the market longer by reinvesting the majority of the profits. Our study shows that an increasing share of the profits was distributed to owners over time, and thus less profit was reinvested in industrial renewal. We find that the observed general upward trend in dividends can be attributed to the decline in profit and firm legacy, as firms in the Swedish pulp and paper industry kept dividends up while reducing reinvestment as their profit margins decreased over time. Our study shows that the market imperfections related to capital taxation and investment funds increased rather than decreased dividends.

Place, publisher, year, edition, pages
2016.
Keyword [en]
life-cycle theory, dividend, market imperfection, paper and pulp industry
National Category
Economic History Social and Economic Geography
Research subject
Economic History; Social and Economic Geography
Identifiers
URN: urn:nbn:se:umu:diva-124626DOI: 10.1080/03585522.2016.1223745OAI: oai:DiVA.org:umu-124626DiVA: diva2:953567
Funder
Forte, Swedish Research Council for Health, Working Life and Welfare, 2013-1313
Available from: 2016-08-18 Created: 2016-08-18 Last updated: 2016-08-25

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Andersson, Lars-FredrikBergquist, Ann-KristinEriksson, Rikard
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Economic historyEconomic and social geography
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Scandinavian Economic History Review
Economic HistorySocial and Economic Geography

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