What is relationship between profits and dividends in agricultural legal entities?

Abstract

The paper assesses the development of profits in the selected legal entities of agricultural primary production in the Slovak Republic as well as the progress in taxation of profit distribution in the form of dividends including mutual correlations in 2009-2014. Mean values of profit or loss are noted for the diverse development of examined variables. The development of mean values of dividends from the net profit is achieved a slight increase in the selected years. The dividends generated in the analysed periods were not taxable because according to the Slovak tax law dividends were not subject to tax. The results of testing of differences significance in profit or loss values in the reviewed commercial companies and cooperatives determined that the statistically significant differences existed in the particular years. In case of dividends no statistically significant differences were found. The statistically significant correlations between profit and dividends were reported by means of nonparametric correlation analysis except for the profit generated in the year 2009 and dividends in the year 2010.