Abstract
ABSTRACTIn general, the dividend payout pattern for Russian corporations during their formative period from 1998 to 2006 was seemingly independent of company earnings, size, growth opportunities and capital structure, as such firm policies appear not to conform to any of the main extant dividend payout theories. The only exception we find is that of utility firms, which were inclined to pay consistent dividends. Utility firms tended to be partly owned by the state and were subject to price regulation. Consequently, they may have had limited investment prospects. Our findings suggest that dividend payout policies in non‐market economies may be driven by non‐traditional determinants, such as the state's overall industrial strategy.
Highlights
This paper examines the dividend policies of Russian corporations during their formative years
We argue that one possible reason for this is that the utility sector is associated with extremely unattractive investment opportunities and dividend policy is used to attract shareholders
When we examine various characteristics of firms, we see that, as measured by the value of total assets, non-paying firms tended to be smaller companies, and inconsistent dividend payers tended to be slightly larger than consistent payers
Summary
This paper examines the dividend policies of Russian corporations during their formative years. Data sources Our goal is to test whether the usual factors, namely firm size, profitability, growth prospects, debt levels and dividend tax effects had any impact on corporate dividend policy in Russia during the 1998-2006 period.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
