Empirical analysis of Dividend Policy of Public and Private Companies in Russia
The ownership structure of large Russian companies is characterized by a high share of state participation, but the relationship of dividend policy with the ownership structure (public or private) is not defned. Statistical analysis of the Russian companies shows that this relationship exists and ca...
| Main Authors: | , , |
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| Format: | Article |
| Language: | Russian |
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Government of the Russian Federation, Financial University
2018-11-01
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| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/754 |
| _version_ | 1797878765415563264 |
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| author | A. E. Novak O. S. Silkina I. E. Khvostova |
| author_facet | A. E. Novak O. S. Silkina I. E. Khvostova |
| author_sort | A. E. Novak |
| collection | DOAJ |
| description | The ownership structure of large Russian companies is characterized by a high share of state participation, but the relationship of dividend policy with the ownership structure (public or private) is not defned. Statistical analysis of the Russian companies shows that this relationship exists and can be nonlinear. In the course of the regression analysis, the authors tested hypotheses about the existence of a negative relationship between the volume of dividends paid and the share of state participation. We use panel data from nonfnancial companies listed in the Moscow stock exchange from 2008 to 2016, who paid dividends during this period; 150 companies in total. Three specifcations were tested: the frst one uses the dividend payout ratio as a dependent variable; the second — the share of dividends in the free cash flow; the third has a quadratic form — the nonlinear dependence of dividend payout ratio and share of state participation. Control variables were based on life cycle theory. Testing has shown that in the linear form there is no statistically signifcant relationship between the indicators of dividend payouts and the share of state participation. We have shown that the relationship between the dividend payout ratio and the share of government participation is non-linear and has the form of an inverted u-shape parabola. For a low level of state participation the dependence is positive but for a high level of participation, it is negative. This result can be explained in the framework of the agency theory: a positive relationship indicates the use of dividend payouts to resolve the agency conflict; a negative — the concentration of money in the hands of managers due to minority shareholders weakness. Further development of the study may include the addition of institutional constraints to the model, as well as the expansion of the concept of the dividend policy outcome within the framework of the frm’s sustainable development theory. |
| first_indexed | 2024-04-10T02:38:23Z |
| format | Article |
| id | doaj.art-d6705e142798468ea12b1fe5e76459e2 |
| institution | Directory Open Access Journal |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| last_indexed | 2024-04-10T02:38:23Z |
| publishDate | 2018-11-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj.art-d6705e142798468ea12b1fe5e76459e22023-03-13T07:49:28ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892018-11-012259010410.26794/2587-5671-2018-22-5-90-104679Empirical analysis of Dividend Policy of Public and Private Companies in RussiaA. E. Novak0O. S. Silkina1I. E. Khvostova2Национальный исследовательский университет «Высшая школа экономики», Нижний НовгородНациональный исследовательский университет «Высшая школа экономики», Нижний НовгородНациональный исследовательский университет «Высшая школа экономики», Нижний НовгородThe ownership structure of large Russian companies is characterized by a high share of state participation, but the relationship of dividend policy with the ownership structure (public or private) is not defned. Statistical analysis of the Russian companies shows that this relationship exists and can be nonlinear. In the course of the regression analysis, the authors tested hypotheses about the existence of a negative relationship between the volume of dividends paid and the share of state participation. We use panel data from nonfnancial companies listed in the Moscow stock exchange from 2008 to 2016, who paid dividends during this period; 150 companies in total. Three specifcations were tested: the frst one uses the dividend payout ratio as a dependent variable; the second — the share of dividends in the free cash flow; the third has a quadratic form — the nonlinear dependence of dividend payout ratio and share of state participation. Control variables were based on life cycle theory. Testing has shown that in the linear form there is no statistically signifcant relationship between the indicators of dividend payouts and the share of state participation. We have shown that the relationship between the dividend payout ratio and the share of government participation is non-linear and has the form of an inverted u-shape parabola. For a low level of state participation the dependence is positive but for a high level of participation, it is negative. This result can be explained in the framework of the agency theory: a positive relationship indicates the use of dividend payouts to resolve the agency conflict; a negative — the concentration of money in the hands of managers due to minority shareholders weakness. Further development of the study may include the addition of institutional constraints to the model, as well as the expansion of the concept of the dividend policy outcome within the framework of the frm’s sustainable development theory.https://financetp.fa.ru/jour/article/view/754дивидендная политикаструктура собственностиагентский конфликткорпоративное управлениетеория жизненного цикларегрессионный анализпанельные данныенелинейная модель |
| spellingShingle | A. E. Novak O. S. Silkina I. E. Khvostova Empirical analysis of Dividend Policy of Public and Private Companies in Russia Финансы: теория и практика дивидендная политика структура собственности агентский конфликт корпоративное управление теория жизненного цикла регрессионный анализ панельные данные нелинейная модель |
| title | Empirical analysis of Dividend Policy of Public and Private Companies in Russia |
| title_full | Empirical analysis of Dividend Policy of Public and Private Companies in Russia |
| title_fullStr | Empirical analysis of Dividend Policy of Public and Private Companies in Russia |
| title_full_unstemmed | Empirical analysis of Dividend Policy of Public and Private Companies in Russia |
| title_short | Empirical analysis of Dividend Policy of Public and Private Companies in Russia |
| title_sort | empirical analysis of dividend policy of public and private companies in russia |
| topic | дивидендная политика структура собственности агентский конфликт корпоративное управление теория жизненного цикла регрессионный анализ панельные данные нелинейная модель |
| url | https://financetp.fa.ru/jour/article/view/754 |
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