scholarly journals Characteristics identifying the companies conducting different dividend policy: evidence from Poland

Equilibrium ◽  
2020 ◽  
Vol 15 (1) ◽  
pp. 63-85
Author(s):  
Aleksandra Pieloch-Babiarz
Keyword(s):  
Stock Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Value Added ◽  
Holistic Approach ◽  
Point Of View ◽  
Capital Growth ◽  
Different Types ◽  
Warsaw Stock Exchange ◽  
Research Gap

Research background: Dividend policy has been a subject of many scientific studies. Although most of them focus on its determinants, there is still a research gap concerning the lack of comprehensive research on the differences between companies implementing different types of dividend policy. Furthermore, no at-tempt has been made to indicate which of them could be considered as more attractive for stock market investor that invests in dividend stocks. Purpose of the article: The aim of this paper is to carry out a comparative analysis of companies with different dividend policy from the point of view of their investment attractiveness. Methods: The empirical research is conducted among the regular dividend payers listed on the main market of the Warsaw Stock Exchange in years 2001–2017. The data for analysis is collected from Notoria Service and Stock Market Yearbooks. The main calculations are carried out using the technique for order of preference by similarity to ideal solution (TOPSIS), descriptive statistics and one-way analysis of variance ANOVA with Fisher’s LSD test. Findings & Value added: The value added of this paper is a holistic approach to comparison of companies conducting different dividend policy. The most significant differences are observed in case of extreme and residual dividend policy. The first policy should be of particular interest to investors investing for dividends, while the second one should be attractive to investors that invest for capital growth. The research is valuable due to the lack of academic studies concerning different dividend policy in the context of attractiveness of investing in dividend shares.

scholarly journals Intra-market commonality in liquidity: new evidence from the Polish stock exchange

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 251-275 ◽  
Author(s):  
Joanna Olbryś
Keyword(s):  
Stock Market ◽  
Stock Exchange ◽  
Time Windows ◽  
Value Added ◽  
Price Impact ◽  
Matrix Estimation ◽  
Research Hypothesis ◽  
Warsaw Stock Exchange ◽  
The Stability ◽  
Window Approach

Research background: Empirical market microstructure research has recently shifted its focus from the examination of liquidity of individual securities towards analyses of the common determinants and components of liquidity. The identification of commonality in liquidity emerged as a new and fast growing strand of the literature on liquidity. However, the results around the world are ambiguous and rather depend on a specific stock market. Purpose of the article: The aim of this study is to explore intra-market commonality in liquidity on the Warsaw Stock Exchange (WSE) by using daily proxies of six liquidity estimates: percentage relative spread, percentage realized spread, percentage price impact, percentage order ratio, modified turnover, and modified version of the Amihud measure. The sample covers a period from January 2005 to December 2016. The database contains the group of eighty-six WSE-listed companies. Methods: The research hypothesis that there is commonality in liquidity on the Polish stock market is tested. The OLS with the HAC covariance matrix estimation and the GARCH-type models are employed to infer the patterns of liquidity co-movements on the WSE. Moreover, because the sample period is quite long, the stability of the empirical results by time period is examined. Seven 6-year time windows are utilized in the study. Findings & Value added: The regression results reveal weak evidence of co-movements in liquidity on the WSE, regardless of the choice of the liquidity proxy. Furthermore, the robustness tests based on the time rolling-window approach do not unambiguously support the research hypothesis that there is commonality in liquidity on the Polish stock market. To the best of the author’s knowledge, the empirical findings presented here are novel and have not been reported in the literature thus far.

Ownership structure and company performance: a panel study from Poland

2017 ◽  
Vol 12 (4) ◽  
pp. 485-502 ◽  
Author(s):  
Maria Aluchna ◽  
Bogumil Kaminski
Keyword(s):  
Stock Market ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Panel Study ◽  
Ownership Concentration ◽  
Company Performance ◽  
Negative Effects ◽  
Content Type ◽  
Different Types ◽  
Warsaw Stock Exchange

Purpose The purpose of this paper is to investigate the links between company ownership structure and financial performance in the context of the largest Central European stock market. Using the framework of agency theory, the authors address the question of the expropriation effect by dominant owners and the effect of collusion between shareholders of different types on company performance. Design/methodology/approach The authors test hypotheses on the relations between ownership concentration and the involvement of different shareholders (state, CEO, industry and financial investors) vs return on assets (ROA). The authors adopt the panel model controlling for endogeneity and sector of operation and analyze the data from the unique sample of 495 Polish non-financial firms listed on the Warsaw Stock Exchange in years 2005-2014 with a total of 3,203 observations. Findings The authors identify a negative correlation between ownership concentration by the majority shareholder and ROA, which corresponds with the expropriation rationale of blockholders. The authors also observe negative effects due to ownership concentration by the second largest shareholder, supporting the notion of collusion. The results show that ownership by industry investors is associated with a higher ROA. Ownership by the CEO, state and financial investors proves to have no statistically significant effect on performance. Originality/value The paper further develops the nature of ownership-performance relations in the specific economic context of a post-transition, emerging European stock market, weak external corporate governance mechanisms, insufficient investor protection and significant concentration of share ownership. The results add to the understanding of monitoring vs expropriation effects by large owners and the collusion between different types of shareholders.

scholarly journals Strategies of Dividend policy of the companies listed on the Warsaw Stock Exchange

2015 ◽  
Vol 15 (1) ◽  
pp. 69-82
Author(s):  
Bartłomiej Jabłoński ◽  
Jacek Kuczowic
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Investor Relations ◽  
Research Results ◽  
Dividend Policies ◽  
Dividend Payments ◽  
Warsaw Stock Exchange ◽  
Development Processes ◽  
Basic Determinant ◽  
The Way

Abstract Research into the determinants of companies’ decisions about paying out dividends, which has been described in the Polish specialist literature, concentrates mainly on the dividends actually paid out. The research presented in the article refers to declarations of the companies included in their dividend policies. The aim of the article is to present an attitude to dividend policy exhibited by the companies listed on the Warsaw stock exchange. A particular attempt was made at identifying various formulas of constructing dividend policies by the companies and the declared conditions for dividend payments and their amounts. 118 dividend companies took part in the research and they were selected from among the companies listed on the Warsaw stock exchange in the years 2006-2012. The authors have analysed the dividend policy of the companies in terms of its components and the way it was formulated, as well as the determinants of decisions about dividend payments declared by the companies. The results of the analysis were referred to the types of strategies of the dividend policy presented in the specialist literature. The research results indicate that the boards of many companies do not consider formulating and publicising the principles of making dividend payments to be a relevant area of investor relations. The dividend policy of the companies is usually formulated too generally, with the use of general statements. Satisfying capital needs for the planned development processes appears to be a basic determinant of the distribution of profit, which is why residual dividend policy is prevalent in the analysed companies.

scholarly journals State-Dependent Stock Liquidity Premium: The Case of the Warsaw Stock Exchange

2020 ◽  
Vol 8 (1) ◽  
pp. 13
Author(s):  
Szymon Stereńczak
Keyword(s):  
Stock Market ◽  
Emerging Markets ◽  
Stock Returns ◽  
Stock Exchange ◽  
Market Liquidity ◽  
Liquidity Premium ◽  
Stock Liquidity ◽  
Holding Period ◽  
State Dependent ◽  
Warsaw Stock Exchange

The effect of stock liquidity on stock returns is well documented in the developed capital markets, while similar studies on emerging markets are still scarce and their results ambiguous. This paper aims to analyze the state-dependent variance of liquidity premium in the Polish stock market. The Polish capital market may serve as a benchmark for other emerging markets in the region of Central and Eastern Europe, hence the results of this research should be of great interest for investors and policy makers in Poland and other post-communist European countries. In the empirical, study a unique empirical methodology has been applied, which guarantees the uniqueness of the results obtained. The results obtained suggest that on the Polish stock market exists stock liquidity premium, which is statistically significant, but constitutes only a small fraction of returns. It also does not increase during periods of bearish market, what results from the lengthening of average holding period when market liquidity decreases.

scholarly journals Beta Stability Over Bull and Bear Market on the Warsaw Stock Exchange

2016 ◽  
Vol 16 (1) ◽  
pp. 75-92 ◽  
Author(s):  
Wiesław Dębski ◽  
Ewa Feder-Sempach ◽  
Bartosz Świderski
Keyword(s):  
Stock Exchange ◽  
Point Of View ◽  
Financial Investment ◽  
Bear Market ◽  
Index Model ◽  
Parameter Stability ◽  
Single Index Model ◽  
Warsaw Stock Exchange ◽  
Measuring Frequency ◽  
Investment Portfolios

Abstract Beta parameter is one of the commonly used measures of the investment risk of individual stock or portfolio. It plays a crucial role in modern portfolio theory particularly in management of financial investment portfolios. In the field of beta parameter, numerous studies have been conducted, especially beta properties stability in the context of the stock market cycle phases, measuring frequency of rate of return, and the length of a sample period. There are much fewer studies concerned beta parameter in the countries of Central and Eastern Europe which have undergone systemic transformation at the end of the previous century. From a scientific point of view, it is interesting to know how the beta parameter behaves in these countries. The main goal of this article is to examine the beta parameter stability over bull and bear market conditions on the Warsaw Stock Exchange. The paper presents an analysis of beta stability for 134 stocks of the largest companies listed at the WSE during years 2005–2013. To verify statistically the hypothesis of beta parameter stability, we used monthly returns in the Sharpe’s single-index model. In the first part of the article, we present a brief review of the literature and methodology of the study, while in the second part, the obtained results and conclusions are shown.

scholarly journals Classification of companies into stock exchange quotation markets using network metrics

2020 ◽  
Vol 2020 (2) ◽  
pp. 275-292
Author(s):  
Dariusz Siudak
Keyword(s):  
Stock Market ◽  
Market Efficiency ◽  
Stock Exchange ◽  
Interlocking Directorates ◽  
Stock Market Efficiency ◽  
Warsaw Stock Exchange ◽  
Board Directors ◽  
Network Metrics ◽  
A Company

The classification of a company into the relevant quotation market is an essential part of stock market efficiency. The aim of the article is to predict the classification of enterprises into the two types of quotation markets on the Warsaw Stock Exchange (i.e. the main one and NewConnect) by means of network measures of the company’s participation in interlocking directorates’ networks. The research was carried out on a network of enterprises established on the basis of their relationships through shared board directors. This network included 460 companies listed on the main exchange, and 442 companies in the NewConnect markets of the Warsaw Stock Exchange respectively (a total of 902 entities) at the end of 2014. The aim of the study is to classify the companies into the appropriate quotation market on the Warsaw Stock Exchange, i.e. the main market (WSE) or NewConnect (NC)

scholarly journals Opportunities and threats associated with an investment in shares of innovative companies — evidence from Polish capital market

2018 ◽  
Vol 9 (2) ◽  
pp. 225-244
Author(s):  
Tomasz L. Nawrocki
Keyword(s):  
Stock Exchange ◽  
Average Rate ◽  
Value Added ◽  
Investment Strategy ◽  
Efficiency Analysis ◽  
Rate Of Return ◽  
Investment Efficiency ◽  
Arithmetic Average ◽  
Information Diversity ◽  
Warsaw Stock Exchange

Research background: Since the Internet bubble, which took place at the turn of XX and XXI century, on the global capital markets, including Poland, one may note a growing interest in companies focusing on innovations and innovativeness. The main driver of this interest is the belief that in a longer term innovations and expenditures on research and development will translate into an increase in competitive advantage, financial results, and subsequently also the market value of companies. On the other hand, the attention should also be paid to the fact that innovative activity has also another, darker, side, which is identified with the far-reaching uncertainty about its final effects and the possibility of incurring losses, especially in financial dimension. At the same time, it should be noted that implementation of investment strategy regarding the shares of innovative companies is quite troublesome because of the lack of unified methodology for assessing corporate innovativeness and large information diversity in this area. Purpose of the article: The investment efficiency analysis of investment strategy regarding shares of companies perceived to be innovative with simultaneous focusing on the different cases of situation development in time. Methods: The research was carried out for companies listed on the main market of the Warsaw Stock Exchange, taking into consideration various time ranges of investment. The efficiency analysis of this investment strategy was conducted in the risk-return outlay with the use of such measures as: accumulated rate of return, arithmetic average rate of return, standard and semi-standard deviation, as well as coefficients of variation and semi-variation of rate of return and their inverses. Findings & Value added: The obtained results show that in shorter periods of time, inves-tors buy expectations connected with innovative companies and therefore, the efficiency of investment in their shares is relatively high, but in the longer term expectations are revised by companies’ financial results, which in turn often negatively affects the investment efficiency.

scholarly journals A Longitudinal Study on Dividend Policy and Shareholders’ Wealth Creation of FMCG Sector in India

2020 ◽  
Author(s):  
Shruti G Bhatt ◽  
Krupa B Bhatt
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Value Added ◽  
Market Value ◽  
Wealth Creation ◽  
Entire Study ◽  
Significant Difference ◽  
Market Value Added ◽  
Post Hoc ◽  
Brokerage Firms

The key aim of this research article is to analyze the performance of firms through dividend policy variables and shareholders’ wealth creation of the Fast moving consumer goods (FMCG) sector of India. The selected companies comprise of all listed Nifty FMCG Index firms in National stock exchange. The variables like Dividend payout ratio (DPR), dividend yield (DY) and dividend per share (DPS) for dividend policy analysis and Market value added (MVA) were examined over a period of 10 years (2010-2019). Authors used Statistical tools like Spearman’s Correlation, Kruskal Wallis (KW) H test and Post hoc test of Dunn-Bonferroni. Results found that there is a statistically significant and positive relationship between dependent and independent variables. KW test result shows that there is a significant difference between performance of sample firms. Post hoc test also validated the results of Kruskal Wallis test by considering pair wise comparison. Moreover, From the calculation of Market Value added (MVA), it was found that ITC added the highest wealth for its shareholders’ during the entire study period followed by Hindustan Unilever Limited (HUL) and Dabur India Limited. Godrej Industries added positive but lowest market value during the study period. All the selected firms created wealth for their shareholders. The study can be useful to the prospective investors and investment or brokerage firms to make investment decisions for the long term. Moreover, research can be further carried out by considering other areas like operational efficiency, Profitability and so on.

scholarly journals PENGARUH TIMBAL-BALIK ANTARA PEMBAYARAN DIVIDEN DAN PERTUMBUHAN MODAL SENDIRI PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 4 (1) ◽  
pp. 23-35
Author(s):  
Sofiati Sofiati
Keyword(s):  
Goodness Of Fit ◽  
Dividend Policy ◽  
Mutual Influence ◽  
Stock Exchange ◽  
Agency Cost ◽  
Test Results ◽  
Statistical Measure ◽  
Dividend Payout ◽  
Capital Growth ◽  
Retained Earnings

This study extends previous research on dividend policy and funding decisions. Previous studies have focused on dividend policy or funding decisions alone,to determine the factors that influences.This study aims to determine the mutual influence between dividend payout and capital growth. The authors would like to exame that there are similarities between the factors that affect the distribution of dividends and capital growth include profitability,agency cost,and retained earnings. In this research,the sample comprises of 72 active stocks listed and traded in Indonesia Stock Exchange during the periode of 2011-2015. The test results demonstrate the usefulness of the model testing using indicators overall goodness of fit to meet the criteria recomended level of fitness. By using the non-statistical measure such absolute goodness of fit and parsimony goodness of fit value exceeds recomended levels, it has indicated a good fit between the data with the model proposed research.

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