THE DIVIDEND POLICY OF REAL ESTATE DEVELOPMENT COMPANIES LISTED ON THE WSE IN POLAND

Abstract

The aim of the arti cle is to analyze and identi fy the dividend policy adopted by real estate development companies listed on the WSE. The fi rst regular dividend paid by these enti ti es was in 2007. Only 12% of real estate companies listed on the WSE regularly paid dividends. 48% of the surveyed companies declared that their priority is development and recommended - due to the signifi cant investment needs, and to provide liquidity - leaving their profi ts in the company. In 40% of the development companies, decisions regarding the distributi on of profi ts bear the markings of residual dividend policy. The economic situati on in the constructi on industry, observed in 2007-2013, was an important factor infl uencing the fi nancial situati on of these companies resulti ng in dividend policy decisions. Most realtor companies have taken the decision to pay dividends in the years 2008 and 2011. This means that the situati on in the previous year was an important factor infl uencing the decisions regarding the distributi on of real estate development company profit.