Dividend Policy of State Corporations: Agency Conflict

The article examines how the dividend policy provokes or smoothes potential or open conflicts of interests of private investors, the state and the state corporations management. The slogan of today — “50% of profit — in dividends” — would not be so terrible for a private investor, if there were no problems with calculating this very profit. Should the profit be counted according to IFRS or RAS? What adjustments should be applied to accounting profit? Should the profit in the group of companies be calculated according to the consolidated reporting or to the reporting of the parent company? How to take into account the investment program: again lobbying or algorithm, mandatory for all? Besides, the article examines other issues of corporate governance: how to attract private investors to participate in the state corporations capital and how to ensure their interests; what should be the participation of private investors in corporate governance; what should be KPI of the dividend policy and dividend policy as a motivation factor for top management.