Payout policy in Brazil: Dividends versus interest on equity

Boulton, Thomas J.; Braga‐Alves, Marcus V.; Shastri, Kuldeep

doi:10.1016/j.jcorpfin.2011.09.004

Cited by 35 publications

(40 citation statements)

References 34 publications

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“…This means that institutional factors can play a critical role in understanding the dividend behaviour in emerging markets. Boulton, et al [2012], have the same point of view. They pay particular attention to the role of taxes as a key factor influencing the dividend policy in Brazil.…”

Section: Related Studiesmentioning

confidence: 99%

The Relevance of Dividend Smoothing in the Construction Companies Listed on the Warsaw Stock Exchange

Gostkowska-Drzewicka¹,

Majerowska²

2016

Financial Sciences

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Summary: Dividend smoothing is a well-known empirical fact in developed countries. It is influenced by many factors. In this paper we analyse the relevance of dividend smoothing in the construction companies listed on the Warsaw Stock Exchange in 2000-2014. It is assumed that it is possible to estimate the level of dividend smoothing and to identify the factors determining this level. The implementation of the purpose and verification of the hypotheses required applying econometric models. The findings suggest that the Lintner model can be applied for construction companies listed on the Warsaw Stock Exchange because the smoothing effect was statistically significant in most cases. However, it was not possible to identify statistically significant smoothing factors, although these factors can be useful in order to estimate the logit model which is used to predict whether the company will pay a dividend or not.Keywords: dividend policy, economic factors, corporate payout, Lintner model, logit model. Streszczenie:Efekt wygładzania dywidendy jest empirycznie potwierdzony na rynkach finansowych w krajach wysoko rozwiniętych. Efekt ten jest uwarunkowany wieloma czynnikami. W niniejszym artykule dokonano analizy znaczenia wygładzania dywidendy w spółkach budowlanych notowanych na GPW w Warszawie w latach 2000-2014. Zakłada się, że możliwe są zarówno określenie nasilenia efektu wygładzania dywidendy, jak i identyfikacja uwarunkowań tego efektu. Aby osiągnąć tak sformułowany cel i zweryfikować założoną hipotezę, należało zastosować modele ekonometryczne. Jak wynika z przeprowadzonych badań, model Lintnera może być użyty w przypadku spółek budowlanych. Analizowane czynniki, wpły-wające na wygładzanie dywidendy, okazały się nieistotne statystycznie. Jednakże te same czynniki znalazły zastosowanie w modelu logitowym, który jest użytecznym narzędziem do prognozowania, czy spółka wypłaci dywidendę, czy nie.Słowa kluczowe: polityka dywidendy, czynniki ekonomiczne, wypłata dywidendy, model Lintnera, model logitowy.

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Section: Related Studiesmentioning

confidence: 99%

The Relevance of Dividend Smoothing in the Construction Companies Listed on the Warsaw Stock Exchange

Gostkowska-Drzewicka¹,

Majerowska²

2016

Financial Sciences

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“…1 An exception is that of Benavides et al (2016), who show that Latin American firms' smooth dividends more in relatively well governed countries in the region, and that these firms show evidence of adhering to the pecking order and trade-off theories. Also, Boulton et al (2012) indicate a catering explanation for Brazilian firm preferences to pay cash dividends rather than interest on equity, despite tax incentives to the contrary. In this paper, we establish the comparative flexibility of payout policies in Latin America, and in so doing highlight an intriguing open question in the dividend policy literature.…”

Section: Introductionmentioning

confidence: 94%

Flexible firm-level dividends in Latin America

Eije

Goyal

Muckley

2017

Finance Research Letters

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“…A observância de um maior nível de payout entre as empresas do Nível 2 pode se justificar por maior potencial de crescimento das firmas, características específica como a dispersão acionária, o tamanho das empresas e o setor em que atuam (BEHN; CARVER; NEAL, 2013;BLISS;CHENG;DENIS, 2015;DRAGO et al, 2015;CARVALHAL-DA-SILVA;CHIEN, 2013). Tais resultados podem se justificar ainda em função de similaridades entre os instrumentos de fato utilizados pelas empresas do Nível 2, o ambiente econômico para as empresas listadas nesse segmento, menor aversão ao risco agregado com a maior expectativa de retorno futuro (BOULTON; BRAGA-ALVES; SHASTRI, 2012;CHANG;CHOU;HUANG, 2014).…”

Section: Considerações Finaisunclassified