The dividend policy of real estate development companies listed on the WSE in Poland

Magdalena Gostkowska-Drzewicka ()
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Magdalena Gostkowska-Drzewicka: University of Gdañsk

"e-Finanse", 2016, vol. 12, issue 1, 67-77

Abstract: The aim of the article is to analyze and identify the dividend policy adopted by real estate development companies listed on the WSE. The first regular dividend paid by these enti ti es was in 2007. Only 12% of real estate companies listed on the WSE regularly paid dividends. 48% of the surveyed companies declared that their priority is development and recommended - due to the signifi cant investment needs, and to provide liquidity - leaving their profi ts in the company. In 40% of the development companies, decisions regarding the distributi on of profi ts bear the markings of residual dividend policy. The economic situati on in the construction industry, observed in 2007-2013, was an important factor influencing the fi nancial situati on of these companies resulti ng in dividend policy decisions. Most realtor companies have taken the decision to pay dividends in the years 2008 and 2011. This means that the situati on in the previous year was an important factor infl uencing the decisions regarding the distribution of real estate development company profit.

Keywords: profit distribution; real estate developer; the payout policy principles; economic cycle in construction (search for similar items in EconPapers)
JEL-codes: G23 G32 R31 (search for similar items in EconPapers)
Date: 2016
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