Changes in a Company’s Current Dividend Level and Their Impact on Future Profits – Theory and Practice

Abstract

According to the signalling theory, investors draw conclusions concerning the future income potential of a given company based on the dividends it pays. According to one of the implications of this theory, changes made to a dividend should mirror the direction of future profits. This article presents an empirical analysis of the relationship between the current changes in the level of a dividend paid (t 0) and future company profitability (t + 1, t + 2). The companies examined were all traded on the Warsaw Stock Exchange and paid dividends in the years 2001-2013. The research shows that there is no statistically significant relationship between the dividend paid in a given year and the future results obtained by the companies examined.

Polityka wypłat na rzecz akcjonariuszy. Determinanty – reakcja rynku – ocena

“…Autorami prac z tej sfery naukowej są między innymi Paul M. Healy i Krishna G. Palepu (1988), Doron Nissim i Amir Ziv (2001), Harry DeAngelo, Linda DeAngelo i Douglas J. Skinner (1996), Shlomo Benartzi, Roni Michaely i Richard Thaler (1997), Gustavo Grullon, Roni Michaely i Bhaskaran Swaminathan (2002), Gustavo Grullon, Roni Michaely, Shlomo Benartzi i Richard H. Thaler (2005), a na rynku polskim Elżbieta Wrońska (2009), Bogumiła Brycz i Marek Pauka (2013a), Aleksandra Pieloch-Babiarz (2015), Marek Pauka i Martyna Żyła (2017), Bogna Kaźmierska-Jóźwiak (2017d), Andrzej Zyguła (2018).…”