<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This paper examines the implicit impact of an individual company financial parameters on dividends payments. The empirical research is conducted within the environment that cross-examines fifteen European transition economies with shared traits of frontier to emerging capital markets development stage and exposure to exogenic global volatility from 2007/8 and Covid-19 economic crises spilling over at magnitude. The purpose of this paper is to test whether companies establish stable dividend policy. Dividends payments are sensitive to earnings and hence adjust imminently. The reason stems from uncertainty on future financial performance and on investor protection. Results yield negative link between solvency and dividends based on the fact that the weaker solvency position decreases the priority of dividends likelihood. Comparably dividends are less desirable if competing with company growth opportunities although investors are less willing to wait for future profits. Altogether transitioning markets are less responsive and structurally feature fewer corporate events.</p>
</abstract>

This paper examines the implicit impact of an individual company financial parameters on dividends payments. The empirical research is conducted within the environment that cross-examines fifteen European transition economies with shared traits of frontier to emerging capital markets development stage and exposure to exogenic global volatility from 2007/8 and Covid-19 economic crises spilling over at magnitude. The purpose of this paper is to test whether companies establish stable dividend policy. Dividends payments are sensitive to earnings and hence adjust imminently. The reason stems from uncertainty on future financial performance and on investor protection. Results yield negative link between solvency and dividends based on the fact that the weaker solvency position decreases the priority of dividends likelihood. Comparably dividends are less desirable if competing with company growth opportunities although investors are less willing to wait for future profits. Altogether transitioning markets are less responsive and structurally feature fewer corporate events.

Dividend Policies in Volatile Transitioning Markets

Zagreb International Review of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Dividend Policies in Volatile Transitioning Markets"}

This paper examines the implicit impact of an individual company financial parameters on dividends payments. The empirical research is conducted within the...

Dividend Policies in Volatile Transitioning Markets

Pubblicato online: 14 giu 2022

Pagine: 111 - 132

DOI: https://doi.org/10.2478/zireb-2022-0008

Parole chiave
Dividend policy, Lintner model, Market volatility, Emerging markets, Capital markets

© 2022 Ante Dodig et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Dividend Policies in Volatile Transitioning Markets

Pubblicato online: 14 giu 2022

Pagine: 111 - 132

DOI: https://doi.org/10.2478/zireb-2022-0008

Parole chiaveDividend policy, Lintner model, Market volatility, Emerging markets, Capital markets

© 2022 Ante Dodig et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Parole chiave
Dividend policy, Lintner model, Market volatility, Emerging markets, Capital markets