Ownership Structure and Dividend Policy of Russian Dual-Class Stock Companies

Abstract

This paper investigates the relationship of dividend policy and ownership structure of Russian dual-class stock companies. The results allow to conclude on the link of a wide range of factors of ownership structure and concentration in Russian companies with their dividend policy, as well as to trace the differences in dividend policy for common and preferred shares. The findings point to a growing level of ownership concentration on the Russian market, indicate the severity of agency problem and abuse of minority shareholders' rights, and may be helpful for improving dividend policy of Russian companies and increasing their investment attractiveness.