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Dividend Policy Of Public Companies In Bosnia And Herzegovina

Author

Listed:
  • Dzidic, Ante

    (University of Mostar, Faculty of Economics, Bosnia and Herzegovina)

Abstract

This paper provides insight in dividend policy of publicly listed companies in Bosnia and Herzegovina and investigates appearance of dividend smoothing behavior. The results show increase in portion of dividend paying companies over time while dividend smoothing phenomenon is virtually non-existent. On the other hand, when companies decide to pay dividends they, on average, distribute high portion of profit to shareholders. The paper also provides discussion about capital market development, investor protection and ownership concentration as potential factors affecting importance of dividend payouts. Research results indicate that insufficiently developed capital market characterized with low investor protection and concentrated ownership structure undermine the importance of dividend smoothing practices.

Suggested Citation

  • Dzidic, Ante, 2014. "Dividend Policy Of Public Companies In Bosnia And Herzegovina," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 5(1), pages 1-10.
    • Handle: RePEc:ris:utmsje:0095
    as

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    File URL: http://utmsjoe.mk/files/Vol.%205%20No.%201/1-1-Dzidic2_-_BIH.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    dividends; dividend policy; dividend stability; dividend smoothing behavior; capital market development;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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