The Influence of Dividend Policy on Market Value: Evidence in Brazilian Companies

• Autor(a) principal: Viana Junior, Dante Baiardo Cavalcante
• Data de Publicação: 2017
• Outros Autores: Marques, Daianny Batista, Domingos, Sylvia Rejane Magalhães, Ponte, Vera Maria Rodrigues
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Contabilidade, Gestão e Governança
• Texto Completo: https://revistacgg.org/index.php/contabil/article/view/1114
• topic: Dividend Policy; Market value; Dividend Relevance Theory

Based on the Dividend Relevance Theory, this study investigated the relationship between the dividend policy and the market value of the companies listed on the BM&F Bovespa. We performed correlation tests between the variables analyzed and multiple regression with data in a balanced panel.  Data from 189 companies were analyzed referring to the period from 2009 to 2014. As a proxy for the market value dependent variable, we considered the logarithm of the market value available in Economática®. As an independent variable, a dividend policy was used, with the Payout Index as a proxy. In the proposed econometric model, two control variables were identified as significant in explaining the market value of firms: size and debt. The results indicate that, in general, the Payout does not prove significant vis `a vis firms’ market value. However, in an additional analysis, by segregating the sample according to economic sectors, it was found that in the Public Utilities and Non-Cyclical Consumption sectors, Payout presents a positive and significant relation in accounting for firms’ market value.  Thus, the present study shows indicators that the profit distribution policy is relevant in explaining the market value of firms, based upon specific characteristics in some sectors of the economy.