Work detail

State ownership and ownership concentration as determinants of dividend policy

Author: Bc. Jan Picálek
Year: 2019 - summer
Leaders: Mgr. Aleš Čornanič
Consultants:
Work type: Bachelors
Language: English
Pages: 57
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/203086/
Abstract: This bachelor thesis complements the existing research on implications of various ownership
structures on dividend policy. It extends the literature focused on state ownership and its impact
on dividend amount paid out to shareholders for testing such relationship in the environment of
EU listed stock market and EU government agencies, scope so far lacking in the scientific
literature. Moreover, it provides new way of testing agency theory of dividends by adopting
Herfindahl’s index as proxy of ownership concentration. Therefore, interaction between
shareholders is accounted for as opposed to the commonly used proxy largest shareholder. As a
result, this thesis helps to explain relations between various ownership structure characteristics and
dividend policies. Primary econometric methods, panel data estimation methods, of this thesis
found significantly positive relationship between state owned enterprises and the amount of profit
distributed among shareholders. Compared to existing research on emerging economy of China,
less evidence is found. Therefore, I argue that tunnelling tendencies in EU are substantially lower
due to level of market development and minority investor protection in EU. The results also back
up the agency theory, however, its influence is found to be lower than proposed by past studies.

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