Economics at your fingertips  

State Ownership and Dividend Decisions: Economic Versus Political Determinants

Ritika Jain

Journal of Quantitative Economics, 2022, vol. 20, issue 1, No 2, 23-42

Abstract: Abstract This paper integrates the effect of state ownership and political influence on dividend decisions. Dilution of state ownership in state owned enterprises is associated with admittance of private owners, weaker political influence and better corporate governance compliance—consequently, leading to higher dividend payouts. Studying the state owned enterprises (250 firms) in India between 2007 and 2016, we use instrumental variable regression models to account for the endogeneity between dividend decisions and state ownership. We find that dividend possibility and amount is negatively associated with state ownership. We also find that dividends are paid more frequently and in large amounts just ahead of elections. Finally, state ownership has a stronger effect on how election cycles affects dividend decisions. Our results are robust to a series of tests.

Keywords: State owned enterprises; State ownership; Election cycles; Dividends; India; L33; D22; L21 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1007/s40953-022-00285-z

Access Statistics for this article

Journal of Quantitative Economics is currently edited by Dilip Nachane and P.G. Babu

More articles in Journal of Quantitative Economics from Springer, The Indian Econometric Society (TIES) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2024-05-08
Handle: RePEc:spr:jqecon:v:20:y:2022:i:1:d:10.1007_s40953-022-00285-z