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Impact of a Company’s Dividend Policy on the Liquidity of Shares Listed on the Warsaw Stock Exchange

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  • Gniadkowska-Szymańska Agata

    (University of Lodz, Faculty of Economics and Sociology, Department of Economics of Industry and Capital Markets)

Abstract

This study investigates the informational effect of stock liquidity on dividend payouts. Using a sample of Polish listed companies during 2000 - 2012, I do not find a relation between stock liquidity and dividend payouts. This result is robust to the use of alternative measures of liquidity, and holds after we control for endogeneity concerns. In accord with my hypothesis that stock liquidity provides information and increases insiders’ incentive to pay out dividends, I do not find that the relation between stock liquidity and dividend payouts is more pronounced when the information environment is opaque, and when conflict between controlling shareholders and minority investors is severe.

Suggested Citation

  • Gniadkowska-Szymańska Agata, 2017. "Impact of a Company’s Dividend Policy on the Liquidity of Shares Listed on the Warsaw Stock Exchange," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 13(3), pages 24-32, September.
    • Handle: RePEc:vrs:finiqu:v:13:y:2017:i:3:p:24-32:n:5
    DOI: 10.1515/fiqf-2016-0027
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    References listed on IDEAS

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    More about this item

    Keywords

    dividend policy; liquidity of shares; Agency Costs;
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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