Niyazi Ismayilov's work, "Optimizing dividend policy of Oil and Gas Companies Subject to Capital Structure," published around 2017, explores how capital structure (debt vs. equity mix) influences dividend decisions in the oil and gas sector, aiming to find the ideal balance for maximizing firm value, often linking it to theories like optimal capital structure and agency costs, suggesting high debt/ownership concentration might affect payouts.
Key Themes in Ismayilov's Research & Related Areas:
Optimal Capital Structure: The core idea is that firms should find a perfect mix of debt and equity, and this optimal structure dictates how much cash is available and desirable for dividends.
Dividend-Capital Structure Link: Paying dividends uses up equity, which affects the remaining capital structure, creating a feedback loop.
Sector Specificity (Oil & Gas): Oil and gas firms often have high capital needs, volatile cash flows, and significant state/institutional ownership, which strongly influences their dividend/investment choices.
Ownership Concentration: High ownership by states or large funds (like in Vietnam's O&G sector) can pressure management for dividends or, conversely, lead to capital expropriation, impacting payout ratios.
Agency Costs & Taxes: Factors like management's need to return cash to shareholders (agency costs) versus reinvestment, and the tax treatment of dividends versus capital gains, play a crucial role.