An Impact of Default Risk and Promoters’ Holding on the Dividend Policy in the Firms in India: Evidence using Panel Data

Venkata Mrudula Bhimavarapu, Jagjeevan Kanoujiya, Dr. Shailesh Rastogi
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Abstract

Dividends, as a policy is still a matter of debate. This situation is due to both, lack of consensus in the literature and self-evolution of corporate finance worldwide. Therefore, this study is an attempt to provide insights of the contemporary dividend policy and its driving forces. We collect the panel data from 78 non-financial Indian firms from BSE-100 (BSE-100 is a leading index of Indian companies by Bombay Stock Exchange) from 2015-2019. We decide to test how dividends are driven by default risk, ownership concentration (OC) and profitability of the firms. Profitability is used as moderator to the association of default risk with the dividends. We get startling evidence that OC and profitability do not influence the dividends policy in the firms in India. Default risk negatively impacts the dividends. However, the absolute value of the coefficient is too small and hence can be ignored. Furthermore, we find evidence that dividends are consistent despite the situation of profitability and OC. This finding is one of the main contributions of the study. We recommend to have differential voting rights (DVR) shares to cater to varying aspirations of different investors. Empirical evidence of findings of the study would be an eye-opener to the managers, which is one of the major implications of the current study. Additionally, change of the policies on the DVR shares is another major implication of the study.
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违约风险和发起人持股对印度公司股利政策的影响:使用面板数据的证据
分红作为一项政策,目前仍存在争议。造成这种情况的原因有两方面,一是文献缺乏共识,二是全球范围内企业融资的自我演化。因此,本研究试图提供当代股利政策及其驱动因素的见解。我们收集了2015-2019年BSE-100指数(BSE-100是孟买证券交易所印度公司的领先指数)中78家非金融印度公司的面板数据。我们决定检验违约风险、股权集中度(OC)和公司盈利能力如何驱动股息。盈利能力被用来调节违约风险与股息之间的关系。我们得到了令人吃惊的证据,证明股权结构和盈利能力并不影响印度公司的股息政策。违约风险对股息产生负面影响。但是,该系数的绝对值太小,可以忽略。此外,我们发现证据表明,无论盈利能力和OC的情况下,股息是一致的。这一发现是该研究的主要贡献之一。我们建议有差异投票权(DVR)的股票,以满足不同投资者的不同愿望。研究结果的经验证据将使管理者大开眼界,这是本研究的主要启示之一。此外,DVR股票政策的变化是本研究的另一个主要含义。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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