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Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Received: 2021-08-25  |  Accepted: 2021-11-10  |  Published: 2021-12-30

Title

Fixing a payout ratio by dividend policies: a case of the utility sector


Abstract

The dividend policy presents an important tool to decide whether to pay or with hold the earning. The resolute information about purchasing shares and subsequent dividends show the future prosperity of the company and its position on the market. The article aims at analysing the development of the payout ratio estimated from the current dividend policy of ČEZ Company. CEZ is one of the most important suppliers and producers of electricity in the Czech Republic. The majority owner of the company is the Czech state. It can be stated that the area of operation does not only cover the Czech market, because ČEZ company also operates in other countries, mainly in Central Europe. For this reason, it is very interesting to watch the development of this power giant in terms his dominant role in a small and open economy such as the Czech Republic. The data extraction from company annual reports of 2008-2018 allows the correlation analysis to collect and interpret data on the payout ratio adequacy, examining the actual state of the company, earning distribution and corporate expectations from the market. The earning has a visibly positive impact on the payout ratio. The article offers advice for the organization changes to generalize achieved results, subsequently passing on advice for the whole segment.


Keywords

payout ratio, dividends, dividend policy, funding, earning


JEL classifications

B26 , G15 , G35 , M21


URI

http://jssidoi.org/jesi/article/923


DOI


Pages

416-432


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Vochozka, Marek
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Machová, Veronika
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Sedmíková, Eliška
Institute of Technology and Business in České Budějovice, České Budějovice, Czech Republic https://www.vstecb.cz
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Journal title

Entrepreneurship and Sustainability Issues

Volume

9


Number

2


Issue date

December 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References