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Determinants of corporate dividend policy in Greece

Author

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  • Theophano Patra
  • Sunil Poshakwale
  • Kean Ow-Yong

Abstract

This article examines the determinants of corporate dividend policy of listed firms in Greece as a case study of an emerging market country. The analysis is based on 945 firm year observations of 63 nonfinancial firms which paid dividends annually from 1993 to 2007. The study uses the Generalized Method of Moments (GMM) to estimate the firm level factors that may determine why firms distribute dividends. We find that size, profitability and liquidity factors increase the probability to pay dividends. However, investment opportunities, financial leverage and business risk decrease the likelihood to pay dividends. On the whole, the findings lend support for the information asymmetry and agency cost theories. In addition, the factors that influence dividend policy in developed markets also appear to apply for this emerging market country.

Suggested Citation

  • Theophano Patra & Sunil Poshakwale & Kean Ow-Yong, 2012. "Determinants of corporate dividend policy in Greece," Applied Financial Economics, Taylor & Francis Journals, vol. 22(13), pages 1079-1087, July.
    • Handle: RePEc:taf:apfiec:v:22:y:2012:i:13:p:1079-1087
    DOI: 10.1080/09603107.2011.639734
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    Cited by:

    1. Faruk Bostanci & Eyup Kadioglu & Guven Sayilgan, 2018. "Determinants of Dividend Payout Decisions: A Dynamic Panel Data Analysis of Turkish Stock Market," IJFS, MDPI, vol. 6(4), pages 1-16, November.
    2. Nishant B. Labhane & Jitendra Mahakud, 2016. "Determinants of Dividend Policy of Indian Companies," Paradigm, , vol. 20(1), pages 36-55, June.
    3. Powell Gian Hartono & Robiyanto Robiyanto, 2023. "Factors affecting the inconsistency of dividend policy using dynamic panel data model," SN Business & Economics, Springer, vol. 3(2), pages 1-21, February.
    4. Sunaina Kanojia & Bunny Singh Bhatia, 2022. "Corporate governance and dividend policy of the US and Indian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1339-1373, December.
    5. Seyed Alireza Athari, 2021. "The effects of institutional settings and risks on bank dividend policy in an emerging market: Evidence from Tobit model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4493-4515, July.
    6. Tuba DERYA-BASKAN & Eda BALIKÇIOĞLU, 2018. "Firma Bileşenlerinin Halka Açık Perakende Firmalarında Kurumlar Vergisine Etkisi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    7. Jasmina Džafić & Nedžad Polić, 2018. "Corporate Finance Principles and Wood Industry Growth: Empirical Evidence from Bosnia and Herzegovina," International Business Research, Canadian Center of Science and Education, vol. 11(11), pages 74-83, November.
    8. Abdullah, Hariem, 2021. "Profitability and Leverage as Determinants of Dividend Policy: Evidence of Turkish Financial Firms," MPRA Paper 112134, University Library of Munich, Germany.
    9. Almeida, Renan P. & Hungaro, Lucas, 2021. "Water and sanitation governance between austerity and financialization," Utilities Policy, Elsevier, vol. 71(C).
    10. Rakesh Kumar Sharma, 2021. "Factors influencing dividend decisions of Indian construction, housing and real estate companies: An empirical panel data analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 5666-5683, October.
    11. Rola Elkabbani & Christian Richter & Mona ElBannan, 2020. "Determining dividend payouts of the MENA banking industry: a probit approach," Economics and Business Letters, Oviedo University Press, vol. 9(3), pages 221-229.
    12. Georgina Maria Tinungki & Powell Gian Hartono & Robiyanto Robiyanto & Agus Budi Hartono & Jakaria Jakaria & Lydia Rosintan Simanjuntak, 2022. "The COVID-19 Pandemic Impact on Corporate Dividend Policy of Sustainable and Responsible Investment in Indonesia: Static and Dynamic Panel Data Model Comparison," Sustainability, MDPI, vol. 14(10), pages 1-23, May.
    13. Amjad Hassonn & Huy Tran & Hao Quach, 2016. "The Determinants of Corporate Dividend Policy: Evidence from Palestine," Journal of Finance and Investment Analysis, SCIENPRESS Ltd, vol. 5(4), pages 1-2.
    14. Rój Justyna, 2019. "The Determinants of Corporate Dividend Policy in Poland," Ekonomika (Economics), Sciendo, vol. 98(1), pages 96-110, June.

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