The Effect of Ownership Structure on Dividend Policy and Shareholder Value: A Financialisation Perspective on Construction Companies in Poland

Paweł Oleksy; Andrzej Zyguła

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The Effect of Ownership Structure on Dividend Policy and Shareholder Value: A Financialisation Perspective on Construction Companies in Poland

Paweł Oleksy

and

Andrzej Zyguła

| Dec 18, 2018

Central European Economic Journal

Volume 3 (2017): Issue 50 (December 2017)

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Page range: 41 - 52

DOI: https://doi.org/10.1515/ceej-2017-0016

Keywords
ownership structure, dividend policy, shareholder value, financialisation

© 2017 Paweł Oleksy, Andrzej Zyguła published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Expected relationships between the probability of dividend payment and the characteristic features of the company

Variable	Formula	Expected correlation sign
FIN	Σ% of votes at the financial investors GM	Positive
N_FIN	% of votes at the largest sole non-financial investor GM (t–1)	Negative
PROFIT	Operating profit (t−1)/total assets (t−1)	Positive
SIZE	Natural logarithm of total assets (t−1)	Positive

Logit models

Variable	Logit Model	M_1	M_2	M_3	M_4	M_5	M_6
	Parameter estimate	−1.339	−4.865	0.0721	−4.651	−0.775	4.636
Const	p-Value	0.0000***	0.0004***	0,7506	0.0006***	0.0233**	0.0000***
	Standard error	0.1847	1.3515	0.2268	1.3510	0.3400	0.0008
	Parameter estimate	4.393	4.057			3.460	2.467
FIN	p-Value	0.0000***	0.0001***			0.0007***	0.0312**
	Standard error	0.9073	0.9906			1.0198	1.1397
	Parameter estimate			−2.418	−2.965	−1.282	−2.108
N_FIN	p-Value			0.0000***	0.0000***	0,0584*	0.0074***
	Standard error			0.5951	0.6852	0.6748	0.7819
	Parameter estimate		8.999		9.240		9.242
PROFIT	p-Value		0.0000***		0.0000***		0.0000***
	Standard error		2.1625		2.1117		2.1536
	Parameter estimate		0.272		0.383		0.330
SIZE	p-Value		0.0129**		0.0005***		0.0038***
	Standard error		0.1088		0.1099		0.1132

Total loss		165.39	147.65	169.81	146.22	163.54	143.79
Pseudo R²		0.0641	0.1522	0.0394	0.1601	0.0689	0.1681
X²		26.94	62.43	18.11	65.29	30.63	70.14
p-Value for X²		0.0000	0.0000	0.0000	0.0000	0.0000	0.0000
Hosmer–Lemeshow test		21.58	6.04	13.13	19.75	9.42	11.80
p-Value for Hosmer–Lemeshow test		0.0014	0.6421	0.0688	0.0113	0.3075	0.1601

The variance analysis of the examined TSR and SEVA variables

Indicator	Average value		SSB	df	MSB	SSE	df	MSE	F	p
	0	1
TSR
F-all	−0.10	0.27	1.791	1	1.791	33.010	55	0.600	2.984	0.090*
F-any	0.16	0.21	0.109	1	0.109	147.171	172	0.856	0.128	0.721
SEVA
F-all	−3.96	1.36	375.1	1	375.1	42,005.7	55	763.7	0.49	0.486
F-any	−2.3	−1.6	21.3	1	21.3	166,839.2	172	970.0	0.02	0.882

Descriptive statistics for TSR and SEVA according to F-all.N and F-any.noF classifications

		Mean	df	Standard deviation	Variance	Minimum	Maximum	Q25	Median	Q75
TSR
F-all_N	0	0.189	227	1.00	1.01	−0.94	7.68	−0.39	0.00	0.39
	1	0.131	57	0.79	0.62	−0.93	3.95	−0.38	0.05	0.41
F-any_noF	0	0.173	110	1.031	1.063	−0.940	4.827	−0.46	−0.06	0.37
	1	0.180	174	0.923	0.851	−0.930	7.684	−0.36	0.05	0.41
SEVA
F-all_N	0	−2.13	227	32.10	1030.55	−309.00	165.22	−3.00	−0.19	1.74
	1	−0.60	57	27.51	756.80	−78.55	85.16	−5.10	−0.31	3.44
F-any_noF	0	−1.64	110	31.55	995.65	−309.00	65.68	−1.39	−0.17	0.49
	1	−1.93	174	31.06	964.51	−164.07	165.22	−5.75	−0.25	3.30

The analysis of variances of the examined DY and DPR variables

Indicator	Average value		SSB	df	MSB	SSE	df	MSE	F	p
	0	1
DY
F-all_N	0.054	0.030	0.013	1	0.013	0.204	90	0.002	5.59	0.020**
F-any_noF	0.088	0.039	0.025	1	0.025	0.191	90	0.002	11.72	0.001***
DPR
F-all_N	0.624	0.483	0.432	1	0.432	14.561	90	0.162	2.67	0.106
F-any_noF	0.614	0.562	0.028	1	0.028	14.965	90	0.166	0.17	0.684

The size of the analysed research sample and the willingness to pay dividends in 2004−2014

	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	total
Research sample	17	18	18	18	24	28	28	32	34	34	33	284
D	5	5	5	6	7	11	10	10	9	12	12	92
Willingness to pay D	0.29	0.28	0.28	0.33	0.29	0.39	0.36	0.31	0.26	0.35	0.36	0.32
Willingness at GPW	0.25	0.31	0.30	0.25	0.29	0.25	0.25	0.31	0.34	0.35	0.37	0.30

Results of the dependent variable TSR regression

	b	Standard error	t(55)	p
const	−0.101	0.169	−0.599	0.5515
DPS (F-all)_1v0	0.367	0.213	1.727	0.0897*
R = 0.22684954; R2 = 0.05146071; Corrected R2 = 0.03421454
F(1,55) = 2.9839; p<0.08971; Standard estimation error: 0.77471

The size of a research sample and average willingness to pay out dividends according to three accepted classifications

	F_N		F-all_N		F-any_noF

	F	N	F-all	N	F-any	noF
Total in 2004-2014	36	248	57	227	174	110
Dividend payouts	22	70	36	56	80	12
No dividends	14	178	21	171	94	98
Willingness to pay D	0.611	0.282	0.632	0.247	0.460	0.109

Descriptive statistics for DY and DPR according to F-all.N and F-any.noF classification

		Mean	df	Standard deviation	Variance	Minimum	Maximum	Q25	Median	Q75
DY
F-all_N	0	0.054	56	0.057	0.003	0.007	0.295	0.018	0.032	0.081
	1	0.030	36	0.026	0.001	0.003	0.116	0.012	0.021	0.044
F-any_noF	0	0.088	12	0.095	0.009	0.008	0.295	0.034	0.049	0.091
DPR	1	0.039	80	0.034	0.001	0.003	0.157	0.015	0.024	0.061
F-all_N	0	0.624	56	0.444	0.197	0.088	2.110	0.257	0.529	0.898
	1	0.483	36	0.327	0.107	0.051	1.279	0.238	0.412	0.673
F-any_noF	0	0.61	12	0.452	0.204	0.119	1.693	0.348	0.488	0.701
	1	0.56	80	0.401	0.161	0.051	2.110	0.252	0.474	0.749

eISSN:: 2543-6821
Language:: English

Publication timeframe:: Volume Open
Journal Subjects:: Business and Economics, Political Economics, Economic Theory, Systems and Structures, Microeconomics, Macroecomics, Public Finance and Fiscal Theory

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The Effect of Ownership Structure on Dividend Policy and Shareholder Value: A Financialisation Perspective on Construction Companies in Poland

Published Online: Dec 18, 2018

Page range: 41 - 52

DOI: https://doi.org/10.1515/ceej-2017-0016

Keywordsownership structure, dividend policy, shareholder value, financialisation

© 2017 Paweł Oleksy, Andrzej Zyguła published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Expected relationships between the probability of dividend payment and the characteristic features of the company

Logit models

The variance analysis of the examined TSR and SEVA variables

Descriptive statistics for TSR and SEVA according to F-all.N and F-any.noF classifications

The analysis of variances of the examined DY and DPR variables

The size of the analysed research sample and the willingness to pay dividends in 2004−2014

Results of the dependent variable TSR regression

The size of a research sample and average willingness to pay out dividends according to three accepted classifications

Descriptive statistics for DY and DPR according to F-all.N and F-any.noF classification

Keywords
ownership structure, dividend policy, shareholder value, financialisation