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Dividend policy motives of the Russian public companies
The goal of the study is to identify the differences in dividend policy between non-state and state-controlled public companies. In this this research was conducted an analysis of the Russian and foreign scientific literature justifying the dividend policy of the Russian and foreign public companies. During the study, author highlighted a number of patterns. Target levels of dividend payments of the companies operating in emerging capital markets are on average lower than for the developed ones, as a large proportion of the corporation 's net profit is used for its further development . Nevertheless, the speed of the convergence to the target level of divident repayments is higher for the developing companies. Profitability has a direct positive impact on the amount of dividends. Level of debt reduces dividend payments. In this study we investigated the dividend policy of the one hundred largest Russian companies by market capitalization in 2013. To analyze the differences in dividend policy of non-state and state-controlled Russian public companies author used Litner`s model and its modification. Arellano-Bond`s methodics was used for the analysis of the proposed models. None of the tested hypotheses can not be rejected. Firstly, the Russian non-state controlled public companies set a target level of dividend payments. Secondly, the direction of the influence of the main determinants of the dividend policy, namely ROE, expected future growth in earnings per share and the level of debt, on the size of the dividend for the non-state and state-controlled Russian public companies is the same. However, the degree of the influence of these factors varies considerably for all explanatory variables except the return on equity. Thirdly, the dividend policy of the Russian state-controlled public companies implies a higher payout ratio in the crisis years compared with a surplus. Public non-state companies pay higher dividends in the years when their income is high. While state-controlled public companies pay higher dividends in the crisis years, since state as a controlling shareholder obliges them to pay higher dividends due to the necessity to replenish the budget.