Determinants of dividend policy in unlisted Colombian companies
DOI:
https://doi.org/10.18041/1900-0642/criteriolibre.2021v19n35.8372Keywords:
free cash flow, dividend policy, liquidity, profitability, unlisted companiesAbstract
The article identifies the determinants of the dividend policy of unlisted Colombian companies and considers liquidity and profitability as the main variables. This issue has not been sufficiently investigated in the Colombian context, since the focus has been concentrated on stock market organizations. For this study, 3,518 data were analyzed using an ordinary least squares regression model (OLS - OLS) for the years 2017 and 2018. This information was obtained from the PIE (Portal de Información Empresarial) database of the Colombian Superintendence of Companies for firms reporting financial statements under IFRS. The study revealed that profitability presents a negative and significant relationship with the dividend policy and that, in the case of liquidity, the relationship is positive. The research opens the way to the study of financial aspects that have not been analyzed much in the Colombian literature, thus providing a reference that allows expanding the empirical evidence on financial issues that have a high academic and practical incidence.
Downloads
References
Afza, T., & Mirza, H. H. (2010). Ownership Structure and Cash Flows As Determinants of Corporate Dividend Policy in Pakistan. International Business Research, 3(3), 210. https://doi.org/10.5539/ibr.v3n3p210
Ahmed, I. E. (2015). Liquidity, Profitability and the Dividends Payout Policy. World Review of Business Research, 5(October).
Arimany Serrat, N.; Gutiérrez Eada, S.; Moya, & Viladecans Riera, C. (2015). Utilidad del Estado de Flujos de Efectivo para el análisis empresarial. Revista de Contabilidad y Dirección, 20, 195–217. https://accid.org/wp-content/uploads/2018/11/UTILIDAD_DEL_ESTADO_DE_FLUJOS_DE_EFECTIVO.pdf
Balachandran, B.; Krishnamurti, C.; Theobald, M. F., & Vidanapathirana, B. (2011). Dividend Reductions and Signalling in an Imputation Environment. SSRN Electronic Journal, 61, 1–36. https://doi.org/10.2139/ssrn.1331300
Bonmatí Martínez, J. (2016). Rentabilidad y apalancamiento financiero. Cont4bl3, 58, 31–34. https://dialnet.unirioja.es/descarga/articulo/7520658.pdf
Borges Alves, F. I. A.; Romeiro Guedes, Y., & Lucas Souza, J. (2018). Política de Dividendos: Estudo dos Fatores Determinantes para as Empresas Atuantes no Setor de Utilidade Pública. Revista de Gestão, Finanças e Contabilidade, 8, 4-23.
Borges Forti, C. A.; Peixoto, F. M., & Lima E Alves, D. (2015). Determinant factors of dividend payments in Brazil. Revista Contabilidade e Financas, 26(68), 167-180. https://doi.org/10.1590/1808-057x201512260
Cabrera Bravo, C.; Fuentes Zurita, M., & Cerezo Segovia, G. (2017). La gestión financiera aplicada a las organizaciones. Dominio de Las Ciencias, 3(4), 220-231. https://doi.org/10.23857/dom.cien.pocaip.2017.3.4.oct.220-232
Cantero Cora, H., y Leyva Cardeñosa, E. (2016). La rentabilidad económica, un factor para alcanzar la eficiencia empresarial. Ciencias Holguín, 22(4), 1–17.
Correa García, J. A. (2007). El Ebitda y el flujo de caja libre -FCL- y su aplicación en la gestión financiera empresarial. Revista Internacional Legis de Contabilidad y Auditoría, 32, 159-181.
De La Hoz Suárez, B.; Ferrer, M. A., y De La Hoz Suárez, A. (2008). Revista de Ciencias Sociales (Vol. 14, Issue 1). Instituto de Investigación, Universidad del Zulia (LUZ), Maracaibo, Venezuela. http://ve.scielo.org/scielo.php?script=sci_arttext&pid=S1315-95182008000100008&lng=es&nrm=iso&tlng=es
Deng, L.; Li, S.; Liao, M., & Wu, W. (2013). Dividends, investment and cash flow uncertainty: Evidence from China. International Review of Economics and Finance, 27(10), 112-124. https://doi.org/10.1016/j.iref.2012.09.005
Denis, D. J., & McConell, J. J. (2018). Política de dividendos. Journal of Chemical Information and Modeling. https://doi.org/10.1057/ 978-1-349-95189- 5_234 https://aplicacionesbiblioteca.udea.edu.co:2399/
Díaz Campos, J. A. (2019). ¿Es la percepción de dividendos un factor a tener en cuenta para el inversor en acciones de renta variable? 19-28.
Elton, E. J., & Gruber, M. J. (1970). Homogeneous Groups and the Testing of Economic Hypotheses. The Journal of Financial and Quantitative Analysis, 4(5), 581-602. https://doi.org/10.2307/2330115
Ezell, M. E., & Land, K. C. (2005). Ordinary Least Squares (OLS). Encyclopedia of Social Measurement, 2, 943-950. https://doi.org/10.1016/B0-12-369398-5/00171-7
Fama, E. F., & French, K. R. (2000). Forecasting profitability and earnings. Journal of Business, 73(2), 161–175. https://doi.org/10.1086/209638
Flores Ríos, L. (2001). Reflexiones en la toma de decisiones financieras. Páginas: Revista Académica e Institucional de La UCPR, 59, 4.
Francis, J.; Schiper, K., & Vincent, L. (2002). Earnings and Dividend Informativeness When Cash Flow Rights are Separated from Voting Rights Jennifer Francis. NASPA Journal, 42(4), 1.
García, D. J. L.; Chagolla, I. H., y Noriega, D. S. (2006). Efectos de la colinealidad en el modelado de regresión y su solución. Culcyt, 16, 23-34.
García García, M. del C., y López, L. J. de J. (2016). La política de dividendos como fuente de información y financiamiento. 8(3), 6-10.
Gill, A.; Biger, N., & Tibrewala, R. (2010). Determinants of Dividend Payout Ratios: Evidence from United States. The Open Business Journal, 3(1), 8–14. https://doi.org/10.2174/1874915101003010008
Giriati (2016). Free Cash Flow, Dividend Policy, Investment Opportunity Set, Opportunistic Behavior and Firm’s Value: (A Study About Agency Theory). Procedia - Social and Behavioral Sciences, 219, 248-254. https://doi.org/10.1016/j.sbspro.2016.05.013
Gomes Almeida, L. A.; Texeira Pereira, E., & Oliveira Tavares, F. (2015). Determinants of Dividend Policy: evidence from Portugal. Review of Business Management, 17(54), 701-719. https://doi.org/10.7819/rbgn.v17i54
González, M. V., y Moneta Pizarro, A. M. (2017). Predicción de la distribución de dividendos en Argentina empleando un modelo lineal generalizado mixto. Ciencias Económicas, 2, 9-20. https://doi.org/10.14409/rce.v2i0.6430
Griffin, C. H. (2010). Liquidity and Dividend Policy: International Evidence. International Business Research, 3(3), 3. https://doi.org/10.5539/ibr.v3n3p3
Gunawan, F. S., & Tobing, W. R. L. (2018). The Effect of Profitability Liquidity and Investment Opportunities on Dividend Policy. South East Asia Journal of Contemporary Business Economics and Law, 15(5), 189-195.
Gutiérrez, M.; Yañez, M., y Umaña, B. (2012). Análisis de la política de pago de dividendos en empresas chilenas. Estudios Gerenciales, 28(123), 27-42. https://doi.org/10.1016/S0123-5923(12)70203-6
Gutiérrez Urtiaga, M., y Sáez Lacave, M. I. (2014). La política de dividendos de las empresas con accionistas de control. InDret, 0(3).
Hadianto, B., & Sahabuddin, Z. A. (2016). The Impact of Debt Policy, Profitability, and Liquidity on Dividend Policy of the Manufacturing Firms Listed in Indonesia Stock Exchange. Asian Journal of Management Sciences & Education, 5(4), 27-41.
Han, K.; Lee, S., & Suk, D. (1999). Institutional Shareholders and Dividends. Journal of Financial and Strategic Decisions, 12(1), 53-62.
Harada, K., & Nguyen, P. (2011). Ownership concentration and dividend policy in Japan. Managerial Finance, 37(4), 362-379. https://doi.org/10.1108/03074351111115313
Herrera Freire, A. G.; Betancourt Gonzaga, V. A.; Herrera Freire, A. H.; Vega Rodríguez, S. R., y Vivanco Granda, E. C. (2017). Razones financieras de liquidez en la gestión empresarial para toma de decisiones. Quipukamayoc, 24(46), 153. https://doi.org/10.15381/quipu.v24i46.13249
Hunjra, A.; Ijasz, M.; Chani, M.; Hassan, S., & Mustafa, U. (2014). Impact of Dividend Policy, Earning per Share, Return on Equity, Profit after Tax on Stock Prices Ahmed. Internation Journal of Economics and Empirical Research, 2(2014), 109-115.
Jabbouri, I. (2016). Determinants of corporate dividend policy in emerging markets: Evidence from MENA stock markets. Research in International Business and Finance, 37, 283-298. https://doi.org/10.1016/j.ribaf.2016.01.018
Jensen, G. R.; Solberg, D. P., & Zorn, T. S. (1992). Simultaneous Determination of Insider Ownership, Debt, and Dividend Policies. The Journal of Financial and Quantitative Analysis, 27(2), 247. https://doi.org/10.2307/2331370
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Michael. Journal of Financial Economics 3, 72(10), 305-360. https://doi.org/10.1177/0018726718812602
Jiménez, N. S. (2008). La política de dividendos y la rentabilidad de los negocios. Industrial Data, 11(1), 029-036. http://revistasinvestigacion.unmsm.edu.pe/index.php/idata/article/view/6029
John, K., & Knyazeva, A. (2006). Payout Policy, Agency Conflicts, and Corporate Governance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.841064
Kania, S. L., & Bacon, F. W. (2005). What Factors Motivate the Corporate Dividend Decision? ASBBS E-Journal, 1, 97-107.
Kumar, B. R., & Waheed, K. A. (2015). Determinants of Dividend Policy: Evidence from GCC Market. Accounting and Finance Research, 4(1), 17-29. https://doi.org/10.5430/afr.v4n1p17
Kuzucu, N. (2015). Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms. International Journal of Business and Management, 10(11), 149. https://doi.org/10.5539/ijbm.v10n11p149
Lintner, J. (1956). Distribution of Incomes of Corporations Among Dividens, Retained Earnings, and Taxes. The American Economic Review, 46(2), 97-113.
Lozano Pinar, J. L. (2019). La política de dividendos de las empresas cotizadas españolas: Tendencias recientes.
Mascareñas, J. (1999). Introducción a las Finanzas Corporativas. In Introducción a las Finanzas Corporativas (1-21).
Mascareñas, J. (2011). La Política de Dividendos. 1.
Mehta, A. (2012). An Empirical Analysis of Determinants of Dividend Policy - Evidence from the UAE Companies. Global Review of Accounting and Finance, 3(1), 18-31.
Miller, M. H., & Modigliani, F. (1961). Dividend Policy, Growth, and the Valuation of Shares. The Journal of Business, 34(4), 411-433. https://doi.org/10.1017/CBO9781107415324.004
Morillo, M. (2001). Rentabilidad Financiera y Reducción de Costos. Actualidad Contable Faces, 4(4), 35-48.
Neves, M. E. D.; Cunha, M. M., & Vilas, J. (2020). Determinants of dividends in the telecommunications sector. Revista Brasileira de Gestao de Negocios, 22(3), 669-685. https://doi.org/10.7819/rbgn.v22i3.4069
Palenzuela, V. A. (1986). Las decisiones de distribución de dividendos en la gran empresa española: sus variables determinantes. Anales de Estudios Económicos y Empresariales, 1, 257-274.
Patra, T.; Poshakwale, S., & Ow-Yong, K. (2012). Determinants of corporate dividend policy in Greece. Applied Financial Economics, 22(13), 1079-1087. https://doi.org/10.1080/09603107.2011.639734
Pérez Artica, R. (2011). Atesoramiento de liquidez en grandes empresas: una discusión teórica. Ciencias Económicas, 29(2), 449-462.
Rodriguez, A., y Venegas, F. (2012). Liquidez y apalancamiento de la banca comercial en México.
Rodríguez Sanz, J., & López Iturriaga, F. (1999). La decisión de dividendos en la empresa española: un contraste de teorías alternativas. Cuadernos de Economía y Dirección de La Empresa, 3, 29-44.
San Martín Reyna, J. M. (2017). Estructura de propiedad y su efecto en la política de dividendos en el contexto mexicano. Contaduría y Administración, 62(4), 1199-1213. https://doi.org/10.1016/j.cya.2015.12.006
Sutrisno, & Panuntun, B. (2020). Profitablity and Liquidity on Corporate Value Through Dividend Policy as Intervening Variabel: Empirical Study on Islamic Capital Market. Buletin Studi Ekonomi, 25(2), 249. https://doi.org/10.24843/bse.2020.v25.i02.p05
Tovar-Posso, M., y Muñoz-Martínez, I. T. (2018). Metodología para valoración financiera de PYMES colombianas utilizando flujos de efectivo. Civilizar, 18(35), 139-162. https://doi.org/10.22518/usergioa/jour/ccsh/2018.2/a11
Vancin, D. F., & Kirch, G. (2020). Profit distribution and regulation: the impact of mandatory dividend in corporate internal funding. Revista Contabilidade & Finanças, 1-18. https://doi.org/10.1590/1808-057x201910000
Verónica, M.; Coral, C.; Melanie, K., y Castro, P. (2017). Modelo Explicativo de la Rentabilidad Financiera del sector agroindustrial. Explanatory Model of Financial Profitability in the Agroindustrial Sector. X-Pedientes Económicos, 1(1), 6-16.
Yeo, H. J. (2018). Role of free cash flows in making investment and dividend decisions: The case of the shipping industry. Asian Journal of Shipping and Logistics, 34(2), 113-118. https://doi.org/10.1016/j.ajsl.2018.06.007
Downloads
Published
Versions
- 2022-03-04 (3)
- 2022-03-04 (2)
- 2021-12-03 (1)
Issue
Section
License
Copyright (c) 2021 Criterio Libre
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
