The Determinants of Dividend Policy: A Comparison between Firms Listed on the Italian Stock Exchange and on the Warsaw Stock Exchange (2001–2014)
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Opublikowane:
lip 29, 2019
Słowa kluczowe:
dividend policy theory, dividend pay-out, stock market, international comparison
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Abstrakt
Several theories have been documented on the relevance and irrelevance of dividend policy. Many researchers continue to come up with different findings on the relevance of
dividend policy to the value of firms. In this paper, after an analysis of the different dividend pay-outs offered by Italian and Polish firms, we aim to understand the main factors that
determine the dividend policies of listed companies in Italy and Poland. In order to analyse this policy, we extract data from a wide sample of firms selected from the equity markets of the Italian and Polish stock exchanges. We use descriptive statistics and statistical regressions. The analysis is developed using the Statistical Package for Social Sciences (SPSS).
The study reaches findings that are of great relevance to scholars and investors investigating dividend issues. The paper finds that there are many differences between Italian and
Polish dividend policies; in particular, the dividend pay-out is mostly determined by the dividend yield and liquidity in Polish firms, while it is heavily influenced by profitability
and leverage in Italian firms.
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Chesini, G., & Staniszewska, A. (2019). The Determinants of Dividend Policy: A Comparison between Firms Listed on the Italian Stock Exchange and on the Warsaw Stock Exchange (2001–2014). Journal of Management and Financial Sciences, (30), 77–90. https://doi.org/10.33119/JMFS.2017.30.5
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Bibliografia
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2. Benartizi S., Michaely R., Thaler R., Do Changes in Dividends Signal the Future or the Past?, “The Journal of Finance” 1997, vol. LII, no. 3, pp. 1007–1034.
3. Bhattacharya S., Imperfect Information, Dividend Policy and “The Bird in the Hand” fallacy, “The Bell Journal of Economics” 1979, vol. 10. no. 1, pp. 259–270.
4. Black F., The Dividend Puzzle, “Journal of Portfolio Management” 1976, vol. 2, no. 2, pp. 5–84.
5. Botoc C., Pirtea M., Dividend Payout-Policy Drivers: Evidence from Emerging Countries, “Emerging Markets Finance & Trade” 2014, vol. 50, supplement 4, pp. 95–112.
6. Brzeszczyński J., Gajdka J., Can the Dividend Yield Strategies Beat the Market? Evidence from the Polish Stock Market 1994–2004, “FindEcon Monograph Series: Advances in Financial Market Analysis” 2006, 1, pp. 45–59.
7. Brzeszczyński J., Gajdka J., Dividend-Driven Trading Strategies: Evidence from Warsaw Stock Exchange, “International Advances in Economic Research” 2007, vol. 13. no. 3, pp. 285–300.
8. CONSOB 2014, “Annual Report 2013,” Milan.
9. DeAngelo H., DeAngelo L., Skinner D. J., Dividend and Losses, “The Journal of Finance” 1992, vol. XLVII, no. 5, pp. 1837–1863.
10. DeAngelo H., DeAngelo L., Skinner D. J., Are Dividends Disappearing? Dividends Concentration and the Consolidation of Earnings, “Journal of Financial Economics” 2004, vol. 72 no. 3, pp. 425–456.
11. Easterbrook, Frank H., Two agency-cost explanations of dividends, “The American Economic Review” 1984, vol. 74, no. 4, pp. 650–659.
12. Fairchil R., Guney Y., Thanatawee Y., Corporate Dividend Policy in Thailand: Theory and Evidence, “International Review of Financial Analysis” 2014, vol. 31, pp. 129–151.
13. Fama E. G., French K., Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?, “Journal of Financial Economics” 2001, vol. 60, no. 1, pp. 3–40.
14. Grullon G., Michely R., Benartzi S., Thaler R., Dividend Changes Do Not Signal Changes in Future Profitability, “The Journal of Business” 2005, vol. 78, no. 5, pp. 1659–1682.
15. Ho H., Dividend Policies in Australia and Japan, “International Advances in Economic Research” 2003, vol. 9, no. 2, pp. 91–100.
16. Jensen, Michael C., Agency costs of free cash flow, corporate finance, and takeovers, “The American Economic Review” 1986, vol. 76, no. 2, pp. 323–329.
17. Kinniki S., Dividend Puzzle—A Review of Divided Theories, “LTA” 2001, vol. 1, no. 1, pp. 58–97.
18. Kowalewski O., Stetsyuk I., Talavera O., Do Corporate Governance and Ownership Determine Dividend Policy in Poland?, “Bank i Kredyt” 2007, 11–12, pp. 60–86.
19. Kowerski M., The Economic Sentiment and Dividend Policy in Poland, “Barometr Regionalny” 2012, vol. 1, no. 27, pp. 13–27.
20. Kowerski M., Dividends and Earnings Quality in Poland, “E-Finanse” 2013, vol. 9, no. 3, pp. 42–51.
21. Lintner J. V., Distribution of Incomes of Corporations among Dividends, Retained Earnings and Taxes, “American Economic Review” 1956, no. 46, pp. 97–113.
22. Mancinelli L., Ozkan A., Ownership Structure and Dividend Policy: Evidence from Italian Firms, “The European Journal of Finance” 2006, vol. 12, no. 03, pp. 265–282.
23. Miller H. H., Modigliani F., Dividend Policy, Growth, and the Valuation of Shares, “Journal of Business” 1961, vol. 34, no. 4, pp. 411–433.
24. Miller M. H., Rock K., Dividend Policy under Asymmetric Information, “The Journal of Finance” 1985, vol. 40, no. 4, pp. 1031–1051.
25. Murgia M., Struttura della Proprietà, Conflitti di Interesse e Politica dei Dividendi delle Imprese Italiane, “L’Industria” 1993.
26. Nissim D., Ziv A., Dividend Changes and Future Profitability, “The Journal of Finance” 2001, vol. 56, no. 6, pp. 2111–2213.
27. Patra T., Poshawake S., Ow-Yong K., Determinants of Corporate Dividend Policy in Greece, “Applied Financial Economics” 2012, vol. 22, no. 13., pp. 1079–1087.
28. Rozeff, M. S., Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios. “Journal of Financial Research” 1982, vol. 5, no. 3, pp. 249–259.
2. Benartizi S., Michaely R., Thaler R., Do Changes in Dividends Signal the Future or the Past?, “The Journal of Finance” 1997, vol. LII, no. 3, pp. 1007–1034.
3. Bhattacharya S., Imperfect Information, Dividend Policy and “The Bird in the Hand” fallacy, “The Bell Journal of Economics” 1979, vol. 10. no. 1, pp. 259–270.
4. Black F., The Dividend Puzzle, “Journal of Portfolio Management” 1976, vol. 2, no. 2, pp. 5–84.
5. Botoc C., Pirtea M., Dividend Payout-Policy Drivers: Evidence from Emerging Countries, “Emerging Markets Finance & Trade” 2014, vol. 50, supplement 4, pp. 95–112.
6. Brzeszczyński J., Gajdka J., Can the Dividend Yield Strategies Beat the Market? Evidence from the Polish Stock Market 1994–2004, “FindEcon Monograph Series: Advances in Financial Market Analysis” 2006, 1, pp. 45–59.
7. Brzeszczyński J., Gajdka J., Dividend-Driven Trading Strategies: Evidence from Warsaw Stock Exchange, “International Advances in Economic Research” 2007, vol. 13. no. 3, pp. 285–300.
8. CONSOB 2014, “Annual Report 2013,” Milan.
9. DeAngelo H., DeAngelo L., Skinner D. J., Dividend and Losses, “The Journal of Finance” 1992, vol. XLVII, no. 5, pp. 1837–1863.
10. DeAngelo H., DeAngelo L., Skinner D. J., Are Dividends Disappearing? Dividends Concentration and the Consolidation of Earnings, “Journal of Financial Economics” 2004, vol. 72 no. 3, pp. 425–456.
11. Easterbrook, Frank H., Two agency-cost explanations of dividends, “The American Economic Review” 1984, vol. 74, no. 4, pp. 650–659.
12. Fairchil R., Guney Y., Thanatawee Y., Corporate Dividend Policy in Thailand: Theory and Evidence, “International Review of Financial Analysis” 2014, vol. 31, pp. 129–151.
13. Fama E. G., French K., Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?, “Journal of Financial Economics” 2001, vol. 60, no. 1, pp. 3–40.
14. Grullon G., Michely R., Benartzi S., Thaler R., Dividend Changes Do Not Signal Changes in Future Profitability, “The Journal of Business” 2005, vol. 78, no. 5, pp. 1659–1682.
15. Ho H., Dividend Policies in Australia and Japan, “International Advances in Economic Research” 2003, vol. 9, no. 2, pp. 91–100.
16. Jensen, Michael C., Agency costs of free cash flow, corporate finance, and takeovers, “The American Economic Review” 1986, vol. 76, no. 2, pp. 323–329.
17. Kinniki S., Dividend Puzzle—A Review of Divided Theories, “LTA” 2001, vol. 1, no. 1, pp. 58–97.
18. Kowalewski O., Stetsyuk I., Talavera O., Do Corporate Governance and Ownership Determine Dividend Policy in Poland?, “Bank i Kredyt” 2007, 11–12, pp. 60–86.
19. Kowerski M., The Economic Sentiment and Dividend Policy in Poland, “Barometr Regionalny” 2012, vol. 1, no. 27, pp. 13–27.
20. Kowerski M., Dividends and Earnings Quality in Poland, “E-Finanse” 2013, vol. 9, no. 3, pp. 42–51.
21. Lintner J. V., Distribution of Incomes of Corporations among Dividends, Retained Earnings and Taxes, “American Economic Review” 1956, no. 46, pp. 97–113.
22. Mancinelli L., Ozkan A., Ownership Structure and Dividend Policy: Evidence from Italian Firms, “The European Journal of Finance” 2006, vol. 12, no. 03, pp. 265–282.
23. Miller H. H., Modigliani F., Dividend Policy, Growth, and the Valuation of Shares, “Journal of Business” 1961, vol. 34, no. 4, pp. 411–433.
24. Miller M. H., Rock K., Dividend Policy under Asymmetric Information, “The Journal of Finance” 1985, vol. 40, no. 4, pp. 1031–1051.
25. Murgia M., Struttura della Proprietà, Conflitti di Interesse e Politica dei Dividendi delle Imprese Italiane, “L’Industria” 1993.
26. Nissim D., Ziv A., Dividend Changes and Future Profitability, “The Journal of Finance” 2001, vol. 56, no. 6, pp. 2111–2213.
27. Patra T., Poshawake S., Ow-Yong K., Determinants of Corporate Dividend Policy in Greece, “Applied Financial Economics” 2012, vol. 22, no. 13., pp. 1079–1087.
28. Rozeff, M. S., Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios. “Journal of Financial Research” 1982, vol. 5, no. 3, pp. 249–259.