Determinants Of The Dividend Policy Of Bulgarian Companies

Dimitar Rafailov () and Mirena Trifonova
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Dimitar Rafailov: University of Economics - Varna
Mirena Trifonova: University of Economics - Varna

An Annual Book of University of Economics - Varna, 2010, vol. 82, issue 1, 275-327

Abstract: Dividends are a basic instrument of the financial policy of companies, throughwhich there isinfluenced the value of the particular company. This influence is analysed through a multitude ofmodels and the present study emphasizes on the specific regularities, which are characteristic ofBulgarian companies. There is established the absence of a stable dividend policy and payment ofdividends is rare. The explanation lies in the peculiarities of the environment, which is characterizedby specific taxation of dividends, insufficient development of financial markets, inadequate protectionof the interests of investors and conflicts between majority and minority shareholders. The results ofthe study show that the leading factor for dividend decisions is the high degree of informationasymmetry. The high concentration of ownership is connected with low dividends. It has beendetermined that investment opportunities and the growth rates related to those have an effect ondividend payments, the relation being inversely proportional. There is confirmed the significance ofthe life cycle, asdividends are paid more frequently by mature and well-established companies.

Keywords: dividends; dividend policy; company characteristics (search for similar items in EconPapers)
JEL-codes: G35 (search for similar items in EconPapers)
Date: 2010
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