Author : Szymon Stereńczak
Publisher :
ISBN 13 :
Total Pages : 29 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis Stock Market Liquidity and Firms' Dividend Policy on the Warsaw Stock Exchange by : Szymon Stereńczak
Download or read book Stock Market Liquidity and Firms' Dividend Policy on the Warsaw Stock Exchange written by Szymon Stereńczak and published by . This book was released on 2018 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Studies on the effects of stock liquidity on corporate financial decisions have been made only recently. The first work in this field was a paper of Banerjee et al. (2005), in which they investigated the impact of stock market liquidity on firms' dividend policy. On the developed markets the effect of liquidity on firms' dividend payout is well documented and the findings are not ambiguous: the more liquid are shares on capital markets, the fewer companies are willing to pay dividends and they maintain a lower level of payments. Although most of studies made on emerging markets supports this results, there is still lack of comprehensive analysis made on the polish capital market. The goal of this paper is to investigate the relationship between stock liquidity and both firms' propensity to pay dividends and the level of dividend payments. Research results presented here also support the effects of previous studies: firms with less liquid shares are more willing to pay dividends. The effect of stock liquidity on the payout level also exists but is less significant. The paper is a contribution to further research in this field using data on more companies and from a longer period.