Open Access Open Access  Restricted Access Subscription Access

Prediction Model of Dividend Payment of Czech Joint Stock Companies


Affiliations
1 University of Pardubice, Czech Republic
 

The dividend payment is the very important part of investment decision for many stockholders. Results of this text identify finance factors that influence the management in dividend policy within the examined branch “Production and distribution of electric energy, gas and water”. Seven regressive models were created and they identify and define the effect of individual factors on the dividend payment among individual owner´s types. The retained earnings, the rate of return of invested assets in total and the size of company have the positive effect on the dividend payment. For the purpose of better interpretation the individual factors were quantified in form of the chance that the company will pay the dividend when compared to the fact that the company is not going to pay any dividend. The resulting regressive model was subsequently validated using the classification table and the receiver operating characteristic curve.

Keywords

Dividend Policy, Factors, Management, Model.
User
Notifications
Font Size


  • Benartzi, S.; Michaely, R. (1997). Thaler, R. Do changes in dividends signal the future or the past?. The Journal of Finance, 52(3),1007-1034.
  • Brockman, P.; Unlu, E. (2011). Earned/contributed capital, dividend policy, and disclosure quality: An international study. Journal of Banking & Finance, 35(7),1610-1625.
  • DeAngelo, H.; DeAngelo, L.; Stulz, Rene M. (2006). Dividend policy and the earned/contributed capital mix: a test of the life-cycle theory. Journal of Financial Economics, 81(2), 227-254.
  • Easterbrook, F. H. (1984). Two agency-cost explanations of dividends. The American Economic Review, 74(4), 650-659.
  • Elton, E. J., Gruber, M. J. (1970). Marginal stockholder tax rates and the clientele effect. The Review of Economics and Statistics, 52(1), 68-74.
  • Fama, E. F.; French K. R. (2001). Disappearing dividends: changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60 (1), 3-43.
  • Healy, P. M., Palepu, K. G. (1988). Earnings Information Conveyed by Dividend Initiations and Omissions. Journal of Financial Economics, 21(2),149-176.
  • Hosmer, D. W., Lemeshow, S. (2000). Applied Logistic Regression. New York: Wiley-Interscience.
  • Chae, J., S. Kim, E. Lee. (2009). How corporate governance affects pazout policz under agencz problems and external financing constraints. Journal of Banking and Finance, 33, 2093-2101.
  • Jensen, M. C. (1986). Agency costs of fre cash flow, corporate finance, and takeovers. The Amerrician Economie Review, 76(2), 323-329.
  • Korkeamaki, T.; Liljeblom, E.; Pasternack, D. (2010). Tax reform and payout policy: Do shareholder clienteles or payout policy adjust? Journal of Corporate Finance,16(4), 572-587.
  • La Porta, R., Lopez-De Silanes, Florencio; Shleifer. (2000) Agency problem and Dividend Policies Around the World 2000. Journal of Finance, 55(1), pp: 1-33.
  • Michaely, R., & Roberts, M. (2006). Dividend smoothing, agency costs, and information asymmetry: Lessons from the dividend policies of private firms. Unpublished working paper.
  • Miller, M. H.; Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. Journal of Business, 34, 411-433.
  • Nash, R. C., Netter, J. M., Poulsen, A. B. (2003). Determinants of contractual relation betweem shareholders and bondholders: investment opportunities and restrictive covenants. Journal of Corporate Finance, 9(2), 201-232.
  • Nissim, D., Ziv, A. (2001). Dividend changes and future profitability. Journal of Finance, 61(6), 2111-2134.
  • Novotný, J. (2014) Trendy investování podniků do komodit v současném podnikatelském prostředí na základě psychologické analýzy. Mezinárodní vědecká konference – Aktualne problémy podnikovej sféry 2014. Ekonomická Univerzita v Bratislavě, 2014. ISBN 978-80-225-3867-1.
  • Travlos, N. G., & Milonas, N. T. (2001). The ex-dividend day stock price behaviour in the Athens Stock Exchange. In EFMA 2001 Lugano Meetings.

Abstract Views: 95

PDF Views: 19




  • Prediction Model of Dividend Payment of Czech Joint Stock Companies

Abstract Views: 95  |  PDF Views: 19

Authors

Frantisek Sejkora
University of Pardubice, Czech Republic

Abstract


The dividend payment is the very important part of investment decision for many stockholders. Results of this text identify finance factors that influence the management in dividend policy within the examined branch “Production and distribution of electric energy, gas and water”. Seven regressive models were created and they identify and define the effect of individual factors on the dividend payment among individual owner´s types. The retained earnings, the rate of return of invested assets in total and the size of company have the positive effect on the dividend payment. For the purpose of better interpretation the individual factors were quantified in form of the chance that the company will pay the dividend when compared to the fact that the company is not going to pay any dividend. The resulting regressive model was subsequently validated using the classification table and the receiver operating characteristic curve.

Keywords


Dividend Policy, Factors, Management, Model.

References





DOI: https://doi.org/10.15759/ijek%2F2016%2Fv4i2%2F190273