THE IMPACT OF DIVIDEND POLICY ON FIRM VALUE. A PANEL DATA ANALYSIS OF ROMANIAN LISTED FIRMS

Abstract

The aim of the paper is to investigate the impact of dividend policy on firm value. Our sample consists of sixty-three non-financial firms listed on the Bucharest Stock Exchange over the period 2001-2011. Employing a fixed effects model, we found that dividend pay-out ratio positively influences firm value after controlling for other firm-specific variables. Furthermore, leverage and firm size were found to have a positive effect on firm value.

Keywords

• dividend policy
• firm value
• emergent economies
• romania
• listed firms.