 Analysis of the Relation between Conservatism and the Amount of Dividends Payable to Shareholders. The Case of Romanian Listed CompaniesClaudia-Cătălina Ciocan ()
Ovidius University Annals, Economic Sciences Series, 2019, vol. XIX, issue 1, 570-579 Abstract: This paper has as a main purpose to identify if the use of provisions in accounting is able to produce significant changes in the amount of the distributed earnings (dividends) for the Romanian listed companies. For this purpose, we compute a correction of the distributed earnings by excluding expenses and revenues reported for provisions while maintaining the dividend payout ratio at a constant level. The results indicate significant differences between the dividends actually paid and the potential dividends obtained by excluding the effects of the provisions recognition. We conclude that the use of conservatism in order to avoid decapitalization is a real fact for the company even though the investors seem to be placed in the background. Also, the paper aims to identify and systematise the reasons that should lead the management to recognize provisions in accounting despite the impact exerted over the dividends payable. Keywords: provisions; conservatism/prudence; dividends; decapitalisation; risk (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xix:y:2019:i:1:p:570-579 Access Statistics for this article Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC. |
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