Beschreibung
This paper examines the impact of government ownership on dividend policies using a sampleof 105 energy and utilities companies from 11 Western European countries. The energy
industry is crucial to reaching carbon neutrality, requiring significant investments in renewable
technologies and infrastructure. The theoretical framework outlines two contrasting
mechanisms through which state ownership influences dividend distributions of affiliated
companies in transitioning industries. One perspective suggests that government ownership
increases agency costs in state-owned enterprises, stemming from conflicting political, social,
and fiscal objectives. This fosters risk-averse managerial behaviour, leading to excessively high
dividend payouts as earnings are distributed rather than reinvested. Alternatively, governments
may leverage their influence to align corporate strategies with public priorities, such as
renewable energy and infrastructure development. This approach redirects retained earnings
toward transformative investments, resulting in reduced dividend payouts. Our empirical
findings provide strong support of the first perspective, revealing a significant positive
relationship between state ownership and dividend payouts. The results suggest that, to achieve
carbon neutrality by 2050, policymakers should avoid directly mandating green investments in
SOEs, as increased agency and capital costs hinder high-risk innovation, and instead utilize
dividend inflows to create incentives for broader sustainable investments. This conclusion is
based on an analysis using various statistical methods, including univariate and bivariate tests,
as well as ordinary least squares regressions.
| Zeitraum | 30 Mai 2025 |
|---|---|
| Ereignistitel | EAA Conference |
| Veranstaltungstyp | Keine Angaben |