engleski

Applicability of Catering Dividend Theory and the Firm Life Cycle Theory of Dividends on Zagreb Stock Exchange

Dividend policy is a payment policy implemented by management, which determines the size and pattern of cash payments over time. One of the key issues when it comes to dividends is understanding what determines the size of the paid dividends. Although extensive scientific literature deals with determinants affecting the payment of dividends, it is still a controversial subject. To this day, many theories and explanations have been presented that seek to explain what determines dividend policy in both developed world markets and less developed capital markets such as the Zagreb Stock Exchange in the Republic of Croatia. A large amount of research related to dividend policy is mainly oriented towards known theories such as Agency Cost Theory, Signaling Theory or Free Cash Flow Theory. However, there is little research where the exclusive focus has been placed on lesser known dividend theories such as the Catering Dividend Theory and the Firm Life Cycle Theory of Dividends. Based on the above, the paper examines the applicability of these theories, the Catering Dividend Theory and the Firm Life Cycle Theory of Dividends in the capital market in the Republic of Croatia. The applicability of these two theories alone has never been researched on the capital market in the Republic of Croatia. This research, by isolating the specific variables of these theories and researching their impact on the amount of dividends, provides an additional overview of the explanation of what affects the payment of dividends in companies in the Republic of Croatia and how. The research was conducted on companies listed on the Zagreb Stock Exchange and whose shares were included in the CROBEX, official index of Zagreb Stock Exchange, at the beginning of 2021. A static panel model was used for the needs of the research.

Dividend policy ; Catering Dividend Theory ; Firm Life Cycle Theory of Dividends ; ZS

nije evidentirano