Abstract
The article is devoted to the analysis and assessment of the impact of dividends on the market value of the company. The study is based on data from company reports and statistics from the Moscow Exchange. This paper presents a regression analysis of a choice consisting of 1) 20 systems of Russian companies and 2) 5 largest companies in the oil and gas sector for the period 2013-2019. The regression results show that dividends have a positive effect on capitalization only if the policy is based on the residual principle. The conclusions made in the work, which provide recommendations and a statistical assessment of dependence, can find practical application in determining the dividend policy of an organization and predicting changes in the capitalization of companies.
Highlights
An effective dividend policy is extremely important for a company in its quest to maximize the wealth of its shareholders
The independent variables under consideration include the factors mentioned in the first chapter, the influence of which is presumably the strongest: the amount of dividends, the share of profit allocated to dividend payments, return on equity ROE, leverage (DEED), as well as the Moscow Exchange's IMOEX index
Free and equal accessibility of information for all investors, no transaction costs, rationality of shareholders' behavior guaranteed placement of issued shares Other theories are based on criticism of these premises, in order to get as close as possible to the conditions of a perfect market and to minimize the influence of other variables, it is advisable to consider the largest Russian companies in terms of capitalization, the so-called blue chips
Summary
An effective dividend policy is extremely important for a company in its quest to maximize the wealth of its shareholders. Dividend policy has attracted the attention of financial analysts around the world. It has been a source of controversy and the subject of intense theoretical and empirical research. Despite the significant amount of research carried out, practically none of them concerned Russian companies and, in particular, the oil industry, so this work differs from previous studies in several respects. Recent studies of dividend policy in Russia focus on the analysis of factors influencing the development of dividend policy and the size of dividend payments [1], rather than its impact on the value of the firm
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