IMPACTS OF THE CONVERGENCE TO INTERNATIONAL ACCOUNTING STANDARDS: A DIVIDEND POLICY ANALYSIS

Abstract

The dividend policy can be seen as the way in which the company allocates its profits between dividends paid to shareholders and amounts held in the company over time, representing an important decision in the field of corporate finance, relating to the company investment and funding policy. This study aimed to test the influence of corporate (and accounting) legislation as a driver of the value formation on the dividends distributed by Brazilian companies traded at BM&FBovespa. Thus, information on 147 public companies listed on the BM&FBovespa was used, observed over 10 years (2003-2013), which were analyzed descriptively and through regressions with panel data. The results support the hypothesis of research indicating a stability in the payment of dividends, but also suggest that changes regarding the convergence of Brazilian accounting standards to international process - in special the prohibition of retained profits by listed companies, introduced by law 11.638/07 - may have an impact on the dividend policy of Brazilian companies through the statistically significant increase in dividend yield in the years following the adoption of the Law.