IMPACT OF FOREIGN OWNERSHIP ON DIVIDEND POLICY IN POLAND

Andrzej Zyguła
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Andrzej Zyguła: Department of Financial Markets, Cracow University of Economics, 27 Rakowicka St., 30-510 Cracow

Financial Internet Quarterly, 2017, vol. 13, issue 4, 76-88

Abstract: The article analyses the impact of foreign investors, who were the majority shareholders of companies on the Warsaw Stock Exchange, on dividend policy of these companies in the years 2004-2014. An evaluation of the direction and strength of the influence of the analysed group of investors, using 2 models, was conducted applying logistic regression. The first – dividend payout policy based on the binary logit model - showed that along with a growing share of a foreign investor in a given company the probability of dividend payment by the company increased significantly. The second – dividend level change model based on the multinominal logit method - showed, however, that with an increasing share of foreign investors the probability that a given company will reduce the paid dividend level was enhanced significantly. Additionally, it should be stated that these results, irrespective of the model used, were to a very large extent in line with conclusions of the pecking order theory. However, in the case of signaling, free cash flow and maturity theories, these results only to a small extent provided evidence supporting these theories.

Keywords: ownership structure; dividends; foreign investors; payout policy (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:wsz:fiq000:v:13:y:2017:i:4:id:676

DOI: 10.1515/fiqf-2016-0037

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