Dividend Policy and Payout Ratio.Evidence from Bucharest Stock Exchange

Raluca Georgiana Moscu (), Carmen-Judith Grigorescu () and Ligia Prodan ()

Knowledge Horizons - Economics, 2014, vol. 6, issue 4, 25-29

Abstract: Dividend policy is one of the key elements of financial management, a task and a responsibility for the company's managers. By dividend policy we refer to the way in which managers decide the size and the distribution method of dividends to shareholders. The main objective of this study is the identification of the behavior of companies listed on the Bucharest Stock Exchange in the period 2005- 2012, in terms of dividend policy practiced, be it an invariable dividend, an invariable distribution rate or a residual dividend policy. As a summary, the policies set forth by financial theory do not apply in the practice of companies listed on the Bucharest Stock Exchange, excluding residual dividend policy. The lack of dividend is a signaling instrument of real performances of companies. In these circumstances the absence of attractiveness for companies listed on the stock does not seem to be something surprising.

Keywords: Dividend policy; residual dividend policy; signal theory Journal: Knowledge Horizons - Economics (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:khe:journl:v:6:y:2014:i:4:p:25-29

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