GREEDY STATE? THE EFFECT OF THE GOVERNMENT SHAREHOLDER ON THE DIVIDEND PAYOUT RATIO AND SMOOTHING LEVELS
GREEDY STATE? THE EFFECT OF THE GOVERNMENT SHAREHOLDER ON THE DIVIDEND PAYOUT RATIO AND SMOOTHING LEVELS

Summary/Abstract: This study examines the dividend patterns among companies listed on the stock exchanges in selected countries from Europe, the Middle East, and Africa (EMEA), namely the Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, the Russian Federation, South Africa, Turkey, and the United Arab Emirates. Research aims. Although the dividend policy has been examined in numerous empirical studies, this paper aims to address the differences in the dividend payout ratios between the companies with- and without state ownership with respect to agency theory and the shareholders’ structure. Moreover, the smoothing pattern of dividends is investigated from the perspective of the government presence in the ownership structure. Methodology. The research procedure comprises the ordinary least squares estimation of two separate dividend smoothing equations and the use of adequate parametric or non-parametric statistical tests. Key findings. The obtained results indicate that the presence of the state in the shareholders’ structure coexists with the high levels of dividend payout ratios. The analysis of dividend smoothing behavior gives mixed results. Although many companies smooth dividends in the research sample, the mean levels of the dividend speed of adjustment (SOA coefficients) are rather high among the stock markets in the selected EMEA countries. However, the country smoothing levels differ depending on the version of the applied equation. Moreover, no significant differences are found in the SOA levels between the companies with- and without state ownership.

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