Impact of Dividend Taxation Changing on Dividend Policy of Romanian Companies Listed on Stock Market

Stela JAKOVA (
Bucharest University of Economic Studies


The aim of this paper is to analyze factors (with an influence on value of transactions on stock exchange) which induce companies listed on Bucharest Stock Exchange to pay dividends for period 2008 – 2015. First we will estimate five regression models, taking into account some financial and macroeconomics variables. Second we will rebuild these five regression models including a dummy variable which indicates the change of dividend tax rate. Our analyses emphasized the fact that net income, liquidity index, BET return and total assets have a significant effect on dividend payment policy which keeps their significance also after introducing the dummy variable, except the BET rate which decreased its significance. Also only the change of dividend tax rate and net income have a positively significant impact over dividend payment policy of Romanian ‘companies. The findings from this study are useful to be taken in account by the board of managers of companies when they decide the dividend policy for the company. In the same time our study extends the existing literature on this topic, by analyzing the impact of the most recent change in dividend tax rate from 2015, and also by extending the factors which affect the dividend policy of the companies listed on stock exchange.

Keywords:  dividend payout, dividend tax, stock market, stock exchange
JEL Classification: G34, G35, G38

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Romanian Statistical Review 3/2017