The Effect of Company’s Characteristics on the Propensity to Pay Dividends

Bogna Kaźmierska-Jóźwiak

Abstract


Using a database of 246 nonfinancial companies listed on the WSE in the 2008–2014 period, the author analysed the characteristics of dividend payers and non-payers and the effect of company’s characteristics on the propensity to pay dividends. The results of the study show that dividend payers are larger, more profitable, less leveraged, with lower risk and lower investment opportunities than non-payers. The results of logit regression confirm that size of a company and profitability are positively related to the propensity to pay dividends. Higher leverage, higher risk and higher investment opportunities will reduce the likelihood of paying dividends.


Keywords


dividend policy; propensity to pay dividends

Full Text:

PDF (Język Polski)

References


Brav A., Graham J.R., Harvey C.R., Michaely R., Payout Policy in the 21st Century, “Journal of Financial Economics” 2005, Vol. 77, Issue 3, DOI: https://doi.org/10.1016/j.jfineco.2004.07.004.

De Angelo H., De Angelo L., Skinner D.J., Are Dividends Disappearing? Dividend Concentration and Consolidation of Earnings, “Journal of Financial Economics” 2004, Vol. 72, Issue 3.

Denis D., Osobov I., Why Do Firms Pay Dividends? International Evidence on the Determinants of Dividend Policy, “Journal of Financial Economics” 2008, Vol. 89, Issue 1, DOI: https://doi.org/10.1016/j.jfineco.2007.06.006.

Eije H. von, Megginson W., Dividends and Share Repurchases in the European Union, “Journal of Financial Economics” 2008, Vol. 89, DOI: https://doi.org/10.1016/j.jfineco.2007.11.002.

Fama E.F., French K.F., Disappearing Dividends: Changing Firms Characteristics or Lower Propensity to Pay?, “Journal of Financial Economics” 2001, Vol. 60, Issue 1, DOI: https://doi.org/10.1016/s0304-405x(01)00038-1.

Grullon G., Pay B., Underwood S., Weston J., Has the Propensity to Pay out Declined?, “Journal of Financial and Quantitative Analysis” 2011, Vol. 46, DOI: https://doi.org/10.1017/S0022109010000633.

Gruszczyński M. (red.), Mikroekonometria. Modele i metody analizy danych indywidualnych, Wolters Kluwer business, Warszawa 2012.

Julio B., Ikenberry D., Reappearing Dividends, “Journal of Applied Corporate Finance” 2005, Vol. 16.

Kowerski M., Ekonomiczne uwarunkowania decyzji o wypłatach dywidend przez spółki publiczne, Konsorcjum Akademickie, Kraków – Rzeszów – Zamość 2011.




DOI: http://dx.doi.org/10.17951/h.2016.50.4.203
Date of publication: 2017-02-20 17:31:15
Date of submission: 2016-07-13 23:34:34


Statistics


Total abstract view - 617
Downloads (from 2020-06-17) - PDF (Język Polski) - 0

Indicators



Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 Bogna Kaźmierska-Jóźwiak

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.