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 shareholders, and the dividend policy of Russian companies.
Objectives The research determines the correlation of the presence of foreign investors among shareholders and the dividend policy in Russia.
Methods The correlation was studied through the logit model for binary variables and the least squares method. The empirical underpinning consists of data on 122 largest Russian listed companies.
Results The main hypothesis of a direct correlation of dividends and the presence of foreign stockholders has not been confirmed. The study verifies an inverse correlation of dividend payments and the presence of foreign shareholders.
Conclusions and Relevance Nowadays Russia is not an attractive country for foreign investments due to the unstable economic situation and political relations with other countries. The findings can be useful for managers of the Russian companies to study benefits of foreign shareholding, and investors who are interest in Russia to be an actor of the world economy.

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


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