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Dividend policy and ownership structure of Russian companies: An empirical analysis of the crisis years

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  • Andrey B. Ankudinov

    (Kazan Federal University, Kazan, Russia)

Abstract

Amid various crises plaguing the Russian economy and limited access to global financial markets due to unprecedented sanctions pressure, it is becoming increasingly important to ensure investment activity through internal sources of financing. A well-thought-out dividend policy of Russian public companies, which makes it possible to attract non-speculative resources of resident savers, can play a significant role in this process. The article empirically analyzes the determinants of the companies’ dividend policy with the crisis period specificities considered. Particular attention is paid to the impact made by companies’ composition and ownership structure on dividend payouts. The research methodology is based on dividend policy theory. Among the methods used are univariate analysis of the relationship between Russian companies’ characteristics and the amount of dividends, as well as multivariate analysis using regression models based on panel data. The empirical evidence was data on 1,500 Russian companies with the largest revenue in the non-financial sector in 2012–2021. The test results show that the amount of dividends does not have a statistically significant relationship with the interaction of dummy variables of the ownership structure and crisis years. This can mean that in the crisis period companies identical in terms of this kind of structure do not employ sufficiently homogeneous strategies in the field of dividend payouts. At the same time, dummy variables of state participation and the presence of foreign shareholder are significant in all models. The status of publicly traded company and availability of exchange quotations did not have a significant impact on the dividend payouts of Russian companies. The results obtained as part of the empirical analysis help to frame an effective dividend policy in the crisis years, taking into account possible changes in the composition and structure of ownership, as well as additional financial restrictions associated with limited access to global markets.

Suggested Citation

  • Andrey B. Ankudinov, 2023. "Dividend policy and ownership structure of Russian companies: An empirical analysis of the crisis years," Upravlenets, Ural State University of Economics, vol. 14(3), pages 71-85, July.
    • Handle: RePEc:url:upravl:v:14:y:2023:i:3:p:71-85
    DOI: 10.29141/2218-5003-2023-14-3-6
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    References listed on IDEAS

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    More about this item

    Keywords

    dividend payout; dividend policy; Russian companies; panel data; financial crisis; public companies;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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