Discussion paper Divided Policy and Behavior in Emerging Markets: To Pay or Not to Pay
Type
Book
Authors
ISBN 10
0821333674
ISSN
10128069
Category
Publication Year
1995
Publisher
The World Bank, United States
Pages
25p.
Subject
Banks(General banking services)
Series Name
Abstract
This paper carries the dividend debate into the emerging markets. it shows that dividend policy in those markets is often very different from the norms that have been accepted in on dividend payout ratios than they do on the level of dividends paid. As a result, dividend payments tend to be more volatile in emerging markets than in developed countries, a factor that investors need to be aware of when investing in these markets.
Another point that emerges is that, as these markets develop and open to international capitals, dividend policy increases in importance, even if it is not altered in character. Managers are more concerned about their dividend policy now than they were in the past. And this concern is augmented by the role of the government in many of these countries, which acts as a protector of both minority shareholders and creditors by imposing constraints on dividend policy.
Another point that emerges is that, as these markets develop and open to international capitals, dividend policy increases in importance, even if it is not altered in character. Managers are more concerned about their dividend policy now than they were in the past. And this concern is augmented by the role of the government in many of these countries, which acts as a protector of both minority shareholders and creditors by imposing constraints on dividend policy.
Description
Includes bibliographical references, illusrations
Number of Copies
1
