Assessment of Dividend Policy and Its Impact on the Market Value of a Company Using the Example of Lukoil
Year: 2025
Type: article
Abstract: The relevance of the topic is due to the fact that dividend policy is an integral part of the company's management structure, ensuring the development of the enterprise and influencing the market value of the company. The oil and gas sector is the largest in the Russian economy, and a large number of oil and gas companies that pay dividends to their shareholders are represented on the stock market. The article is devoted to the study of the dividend policy of oil and gas companies and assessing the impact on shareholder income. The work considers various theoretical approaches to the formation of dividend policy, including the concepts of dependence of the company's value on dividend payments (B. Graham, D. Dodd), inverse dependence (R. Litzenberger, K. Ramaswamy) and the independence hypothesis (Modigliani and Miller). Also presented are types of dividend policy, methods for assessing its effectiveness and shown are practical aspects of implementing the profit distribution policy in a large Russian oil and gas company. The dividend policy of PJSC Lukoil is analyzed. The conducted analysis shows that PJSC LUKOIL follows a compromise, shareholder-oriented approach, combining stable dividend payments with flexibility in responding to external shocks. At the same time, the company demonstrates high values of key financial indicators, including dividend yield and the dividend coverage ratio with free cash flow. The results of the study confirm the positive impact of a transparent and predictable dividend policy on the market value of the enterprise and its competitiveness in the stock market.
Authors: Viktoriya Kookueva, Tatyana Blyablina T
Institution: Plekhanov Russian University of Economics
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7083724896