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Dividend policy from the perspective of social system theory

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  • PrzemysÅ‚aw Wechta

Abstract

The aim of the article is to analyse the functions that dividends perform in contractual relationships between public companies’ executives and shareholders. The author analyses the income function of dividend, but also considers its sociological aspects. Talcott Parsons' social system theory is the main point of reference, especially, the concept of contract institution. The article justifies the thesis on the relevance of dividends in shaping the equilibrium of power, information policy and the composition of shareholders in a joint-stock company. Dividend policy has a great regulatory potential, which is important in the face of various crises occurring in contemporary capitalism. JEL codes: A14, D86, Z13

Suggested Citation

  • PrzemysÅ‚aw Wechta, 2022. "Dividend policy from the perspective of social system theory," The Economic and Labour Relations Review, , vol. 33(3), pages 610-628, September.
    • Handle: RePEc:sae:ecolab:v:33:y:2022:i:3:p:610-628
    DOI: 10.1177/10353046221078879
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    References listed on IDEAS

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    6. Easterbrook, Frank H, 1984. "Two Agency-Cost Explanations of Dividends," American Economic Review, American Economic Association, vol. 74(4), pages 650-659, September.
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    8. Li, Wei & Lie, Erik, 2006. "Dividend changes and catering incentives," Journal of Financial Economics, Elsevier, vol. 80(2), pages 293-308, May.
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    Keywords

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    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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