Financial Analytics: Science and Experience

The impact of foreign stockholders on the dividend policy of Russian companies

Vol. 10, Iss. 8, AUGUST 2017

Received: 12 April 2017

Received in revised form: 12 May 2017

Accepted: 15 May 2017

Available online: 15 August 2017


JEL Classification: D31, E25

Pages: 848–858

Fedorova E.A. Financial University under Government of Russian Federation, Moscow, Russian Federation

Komarova E.O. Financial University under Government of Russian Federation, Moscow, Russian Federation

Importance In this article, we consider the dependence of dividend payments of Russian companies on foreign citizens among the stockholders, and the dividend policy of Russian companies.
Objectives The purpose of the paper is to determine the correlation between the presence of foreign investors among stockholders and the dividend policy in Russia.
Methods The research of the dependence was carried out with the help of logit model for binary variables and method of the least squares. The research empirical base consists of data of 122 the largest Russian listed companies.
Results The main hypothesis of the direct correlation of dividends and the presence of foreign stockholders has not been confirmed. The study confirms the inverse dependence of dividend payments on the presence of foreign citizens among the stockholders.
Conclusions and Relevance Nowadays Russia is not an attractive country for foreign investments which is connected with the unstable economic situation and political relations with other countries. The results of this work can be useful for managers of the Russian companies in the frame of studying benefits arising from the presence of foreign stockholders.

Keywords: dividend, foreign, stockholder, investment attractiveness, dividend policy


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