The Effect of Company’s Characteristics on the Propensity to Pay Dividends

Bogna Kaźmierska-Jóźwiak

Abstract


Using a database of 246 nonfinancial companies listed on the WSE in the 2008–2014 period, the author analysed the characteristics of dividend payers and non-payers and the effect of company’s characteristics on the propensity to pay dividends. The results of the study show that dividend payers are larger, more profitable, less leveraged, with lower risk and lower investment opportunities than non-payers. The results of logit regression confirm that size of a company and profitability are positively related to the propensity to pay dividends. Higher leverage, higher risk and higher investment opportunities will reduce the likelihood of paying dividends.


Keywords


dividend policy; propensity to pay dividends

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References


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DOI: http://dx.doi.org/10.17951/h.2016.50.4.203
Date of publication: 2017-02-20 17:31:15
Date of submission: 2016-07-13 23:34:34


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