What Drives the Dividend Decisions in BRICS Countries?

• Autorzy: Urszula Mrzygłód , Sabina Nowak , Magdalena Mosionek-Schweda , Jakub M. Kwiatkowski
• Języki publikacji: EN

Abstrakty

EN

Research background: We examine the dividend payout policies across companies listed on the main stock exchanges in Brazil, Russia, India, China, and South Africa (BRICS). Unlike the highly developed capital markets, the literature regarding dividend policy on BRICS' stock exchanges is scarce.
Purpose of the article: The purpose of this paper is threefold: verification of the existence of dividend smoothing pattern; selection of the significant drivers that affect both dividend levels and dividend smoothing; examination of differences between dividend policy of cross- and single-listed companies.
Methods: Based on a dataset of 564 companies that paid dividends for at least 11 consecutive years in the period of 1995-2015, we apply a GMM two-step estimator to assess the speed of dividend adjustment (SOA) coefficient. Further we employ the linear panel regression to indicate the individual and market determinants of the dividend levels and SOAs. In the latter case, we base on time series of the SOAs obtained from the rolling estimation technique. Finally, we conduct separate estimations for cross-listed companies.
Findings & value added: We confirm a moderate level of dividend smoothing within BRICS countries. Among the firm-level characteristics affecting the SOA the most important are: ownership dispersion, age and size of a firm, retained earnings, leverage, long term debt, asset tangibility, liquidity risk ratio, and issuing the depositary receipts (DR). Two relevant market factors are found: market capitalisation and turnover in relation to GDP. Similar characteristics have a significant impact on dividends' levels in the entire sample, whereas in the subsample of cross-listed companies fewer variables are significant. Our paper is the first comprehensive attempt to investigate the dividend policy and determinants of dividend smoothing among BRICS countries. (original abstract)

Słowa kluczowe

EN

Dividend; Emerging markets

PL

Dywidenda; Rynki wschodzące

• Czasopismo: Oeconomia Copernicana
• Rocznik: 2021
• Tom: 12
• Numer: nr 3
• Strony: 593--629

Twórcy

autor

Urszula Mrzygłód

• University of Gdańsk, Poland

autor

Sabina Nowak

• University of Gdańsk, Poland

autor

Magdalena Mosionek-Schweda

• University of Gdańsk, Poland

autor

Jakub M. Kwiatkowski

• University of Gdańsk, Poland

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Identyfikatory

DOI

10.24136/oc.2021.020