Greedy State? The effect of the government shareholder on the dividend payout ratio and smoothing levels

Sabina Nowak , Magdalena Mosionek-Schweda , Urszula Mrzygłód , Jakub Kwiatkowski


Background. This study examines the dividend patterns among companies listed on the stock exchanges in selected countries from Europe, the Middle East, and Africa (EMEA), namely the Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, the Russian Federation, South Africa, Turkey, and the United Arab Emirates. Research aims. Although the dividend policy has been examined in numerous empirical studies, this paper aims to address the differences in the dividend payout ratios between the companies with- and without state ownershipwith respect to agency theory and the shareholders’ structure. Moreover, the smoothing pattern of dividends is investigated from the perspective of the government presence in the ownership structure. Methodology. The research procedure comprises the ordinary least squares estimation of two separate dividend smoothing equations and the use of adequate parametric or non-parametric statistical tests. Key findings. The obtained results indicate that the presence of the state in the shareholders’ structure coexists with the high levels of dividend payout ratios. The analysis of dividend smoothing behaviour gives mixed results. Although many companies smooth dividends in the research sample, the mean levels of the dividend speed of adjustment (SOA coefficients) are rather high among the stock markets in the selected EMEA countries. However, the country smoothing levels differ depending on the version of the applied equation. Moreover, no significant differences are found in the SOA levels between the companies with- and without state ownership.
Author Sabina Nowak (FM / DE)
Sabina Nowak,,
- Department of Econometrics
, Magdalena Mosionek-Schweda (FE / IIB)
Magdalena Mosionek-Schweda,,
- Institute of International Business
, Urszula Mrzygłód (FE / IIB)
Urszula Mrzygłód,,
- Institute of International Business
, Jakub Kwiatkowski (FE / DEEI)
Jakub Kwiatkowski,,
- Department of Economics of European Integration
Other language title versionsCzy państwo jest zachłanne? Wpływ obecności państwowego akcjonariusza na poziom i szybkość wygładzania dywidendy
Journal seriesInternational Journal of Contemporary Management, ISSN 1643-5494, e-ISSN 2449-8939 [2449-8920], (B 14 pkt)
Issue year2017
Publication size in sheets1.2
Keywords in Polishwygładzanie dywidendy, współczynnik wypłaty dywidendy, akcjonariusz państwowy, giełdowe rynki wschodzące, kraje regionu Europy, Bliskiego Wschodu i Afryki
Keywords in Englishdividend smoothing, payout ratio, government shareholder, emerging stock markets, Europe, Middle East, Africa
Languageen angielski
Score (nominal)14
ScoreMinisterial score = 14.0, 30-03-2018, ArticleFromJournal
Ministerial score (2013-2016) = 14.0, 30-03-2018, ArticleFromJournal
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