Dividends Research Papers - Academia.edu (original) (raw)

This paper analyzes the relationship between the dividend and debt policies, firm risk and the director’s ownership. Firstly, the results show that the payment of dividends reduces the risk and the leverage, and increases the ownership. Secondly, the firm risk presents a negative effect on the debt ratio and on the payment of dividends and a positive repercussion on the ownership. Thirdly, we can see that the most indebted companies distribute an inferior quantity of dividends and present a bigger ownership. Finally, it is observed that the mentioned ownership increases the risk and the indebtedness. Este trabajo analiza la relación entre el pago de dividendos, el riesgo empresarial, el endeudamiento y la propiedad de los consejeros. Los resultados muestran, en primer lugar, que el pago de dividendos reduce el riesgo y el nivel de endeudamiento y aumenta la propiedad de los consejeros. En segundo lugar, se obtiene que dicho riesgo repercute de forma negativa en el endeudamiento y en...

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- Economics, Risk, Debt, Dividends
- by Eric Ohrn and +1
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- Mergers & Acquisitions, Taxation, Business Taxation, Corporate Taxation

The following ratio analysis will look at the financial performance of American Eagle Outfitters (AEO), Inc. and Urban Outfitters (UO), Inc. Both companies compete within the retail family clothing stores industry and have domestic and foreign operations.
AEO opened its first store in the United States (US) in 1977 and as of December 31, 2008 is operating in 1,098 stores and also operates e-commerce sites under AEO Direct. AEO has 37,500 employees who work under the name American Eagle Outfitters, and wholly-owned subsidiaries, American Eagle, and AE brand names (aerie, Dormware®, AE® Martin + OSA® and 77kids™), (Libby, Libby, & Short, 2011, pp. B-2 – B-3)
UO was founded in 1970 as a predecessor partnership and later “incorporated in the Commonwealth of Pennsylvania in 1976….The company’s principle business is the operation of a general consumer product retail and wholesale business selling to customers through various channels including retail stores, three catalogs, and four web sites” (Libby et al, 2011, p. C-7). As of January 31, 2009, the company operated out of 294 stores and “in addition, the company’s wholesale segment sold and distributed apparel to approximately 1,800 better specialty retailers worldwide” (Libby et al, 2011, p. C-7).

- by susor mark
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- Business, Finance, Globalization, International Business
- by success simon
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- Capital Markets, Firm Growth, Empirical evidence, Dividends

Appropriate dividend distribution policy can not only set a good corporate image, but also to build the confidence of investors in the company's future prospects, thus creating a good corporate financing environment, the company long-term stable development. This paper is an attempt to analysis the impact of dividend payout on share price volatility. Here 15 listed hotel and travel companies are selected for this research on random sampling method. SPSS 16 used for analysis. Analyzed results revealed Dividend payout, Net assets per share and Earning per share statistically significantly predict the Share price Volatility, F(3, 126) = 14.613, p < .05. This results shows that Dividend payout has significant positive impact on share price changes p<0.01 and 25.8% of variability of share price explain by Dividend payout. Further correlation analysis results revealed that there is positive significant relationship between dividend payout and share price volatility. Therefore the study recommended to selected companies to concentrate on distribution of income which influences on shareholders'' wealth. Keywords: dividend payout, share price volatility, net asset per share, Earning per share

- by Tharshiga Pratheesh
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- Dividends
- by Sadiq Ahmed
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- Information Technology, Dispute Resolution, Property Rights, International Trade
- by Thomas Hope
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- Finance, Accounting, MBA finance, Dividends
- by Laura Rondi
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- Electricity, Dividends
- by tushar dembla
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- Dividends
- by Abdulkadir Olatinwo Idowu
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- Economics, Earnings Management, Malaysia, Indonesia

When the tendency of dividends pay-out ratio is falling down, the number of investors who wants to invest on the consumer goods industries becomes decreasing. It was predicted because several firms of the consumer goods industry prefer to reinvestment their profits. This problem has given a significant effect on dividend policy. A lot of factors could impact on dividend policy, but we assume that leverage has effect on dividend policy, and the profitability has control on leverage and dividend policy as intervening variable. This paper aims to examines the effect of leverage on dividend policy, the effect of leverage on profitability, the effect of profitability on dividend policy. The number of samples was collected 8 out of 36 companies of the Consumer goods industries listed on the Indonesia Stock Exchange (IDX) period of 2008-2014. The Statistical method is analyzed by using Path Analysis. We found that the direct effect of leverage on dividend policy is a negative effect (-0.648), it might be happening because of degradation of leverage could be the management of Consumer goods industries more focus to holding on their profit rather than to increase their leverage. Leverage has positive effect (0.872) on profitability. Then, profitability has positive effect (1.004) on dividend policy. Therefore, the implication about this result is the companies must be serious attention on dividend policy to attract attention of investor.

- by IJBEA Journal
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- Dividends
- by Caterina Ruggeri Laderchi
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- Business, Entrepreneurship, Economics, Econometrics

Dividend policy of firms is one of the most controversial issues of theoretical finance. This paper aims to investigate the firm-level factors influencing the dividend decisions of firms from an emerging market. We examined eight-year panel data for the period from 2006 to 2013 from the Turkish stock market (Borsa Istanbul). The results show that financial leverage, size, growth rate, age, profitability, ownership structure and P/E ratio are statistically significant. The relationship of leverage, growth rate, profitability and family control with dividends is negative, whereas the relationship of size, age and P/E ratio is positive. Therefore, firms with higher debt ratios / growth rates / higher earnings are likely to retain more of their earnings. The empirical evidence from the Turkish stock market shows that the maturity hypothesis proposed by Grullon, Michaely and Swaminathan (2002) best explains the dividend behaviors of firms. Accordingly, as a firm matures, the availability of profitable projects reduces and earnings decrease. As the investment opportunities reduce, the need for resources decreases and the firm increases dividend payouts to shareholders.

- by Narman Kuzucu
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- Corporate Finance, Financial management, Dividends

The following paper conducts an Event Study analysis and examines whether there are abnormal returns around the dividend cuts announcement for companies listed on FTSE All-Share and also tests the UK stock market efficiency. Providing an exhaustive statistical analysis of two companies, namely, McBride and Antofagasta, we inferred that the new released information (dividend cuts) had an instant effect on the stock prices proving that the semi strong market efficiency hypothesis is violated. Furthermore, the CAR graph has an upward trend for McBride and a downward shift for Antofagasta which rejects the EMH because investors can gain abnormal profits after the announcement day.

- by Andreea Cretu
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- Dividends, Abnormal Returns, CUMULATIVE ABNORMAL RETURNS

Se analiza el problema de la pérdida del escudo fiscal por un reparo generado por la autoridad tributaria, sobre los intereses de un financiamiento, en particular, en el caso de las sociedades que toman deuda para apalancar el pago de dividendos. Se explica la razonabilidad de dicha estructura de financiamiento dentro de las finanzas corporativas y como es que ello satisface la causalidad del gasto para efectos tributarios. Finalmente, se expone cómo se ha resuelto esta problemática en la jurisprudencia comparada, específicamente en República Checa, Polonia, Austria e Isreael.

- by Jesús A. Ramos Angeles
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- Finance, Tax Law, International Tax Law, Tax reform

Este artículo tiene como objetivo determinar los criterios empleados en la definición de la política de dividendos en las cadenas de hipermercados y supermercados familiares en el estado Zulia, Venezuela. El diseño de investigación es no experimental de campo, con un tipo de estudio descriptivo. Los resultados evidenciaron, por una parte, el cumplimiento de las restricciones legales definidas para la distribución de dividendos; y por la otra, destaca un rasgo característico de las empresas familiares, como es responder a las necesidades particulares de los accionistas, dificultando cumplir los criterios financieramente idóneos para la estabilidad y crecimiento económico de la organización.

- by Ana Hernández Chacin
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- Family Business, Dividends

This paper attempts to explain how “absolute” corporate power examined like, powers as powers in trust, considering five principal. Corporate power to issue stock must be judged in relation to the existing facts which protect the interests and equities of all shareholders. Court point of view was that absolutely power need to be given to management and in “preëmptive right” like a simple capital structure and condition that “preëmptive right” is not right. The power to be declare or withhold dividends most benefit corporation as a whole. The court will intervene if dividends wasn't be declared out of capital or where withholding dividends depress the price of stock in the market. In a family corporation, court was directed: “Declaration of dividends”. Case of Prudential-Insurance-Company proposed buy a majority stocks of the Fidelity-Trust-Company, obtained power to acquire corporate control. Courts may take judicial notice of the “rubber-stamp” quality of most stockholders' votes which action benefited even those shareholders which cutting down specific contract rights such as fixed dividend, fixed preference in assets, and right to stated participation. The power to transfer the corporate enterprise to another enterprise, respective interests of the shareholders of all classes, by merger, exchange of stock, and sale of assets.

- by Darko Milosevic
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- Mergers & Acquisitions, Trust, Justice, Stock Market
- by Thi Huynh Giai
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- Accounting, Corporate Governance, Dividends, Dividend policy

Dividend policy is a vital part of a corporate’s financing decision. This dividend-payout policy will determine the amount of earnings that can be retained in the firm as a source of financing (Horne & Wachowicz, 2008). Over the past 40 years, financial theorists have debated the extent to which dividend policy should and does matter to a firm’s market value and thus its shareholders. One group of theorists believe that dividend policy is irrelevant to shareholders, through the company’s market value...

- by Shekyn Saurty
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- Finance, Taxation, Corporate Finance, Agency Theory
- by Blossoming Sakura
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- Dividends, PPT Presentation, Determine Dividend Payout Ratio

Dividend policy of an organization and how it affects their performance has remained one of the hottest and keenly debated issues till date. In spite of growing bodies of literatures and empirical findings, there has not been any general acceptance or conclusion on the extent dividend policy may influence corporate performance. This study examined dividend policy and corporate performance. The study adopted multiple regression models to examine the selected companies namely Nigerian Breweries Plc, Zenith Bank Nigeria Plc and Guaranty Trust Bank Plc from 2011-2015. The result of the analysis showed that for Nigerian Breweries, profit after tax and return on asset are positively related to dividend while earnings per share has negative relationship with dividend. The result for Zenith Bank shows that earnings per share and return on asset are positively related to dividend while profit after tax has negative relationship with dividend. The result for Guaranty Trust Bank shows that profit after tax has positive relationship with dividend while earnings per share and return on asset are negatively related to dividend. From the findings, the study concludes by agreeing with most of the dividend relevant proponents that dividend matters to corporate performance even though with varying results that tends to support other theories such as dividend residual theory. It therefore recommends that managers must review the opinion of their core investors in deciding dividend policy that meets with their expectations.

- by Equatorial Journals
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- Dividends

The impact resulted from the dividend policy of a firm, on the volatility of the market value of stocks, is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned, on the maximization of stock holders' wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact, within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that, the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context, in case of the market value of the firm, while being contrary in case of the share price volatility. Accordingly, the firms' ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.

- by Sadiq Ahmed
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- Information Systems, Economics, Game Theory, Political Economy

Dividends are payments made to the shareholders (owners) out of firms‟ earnings. Numerous academics, adopting either a behavioural or empirical approach, have provided rationales to address the issue of why companies pay dividends and whether the market response to the announcements can be predicted. However, these endeavours have failed to achieve unanimity on either issue. Moreover, most of these studies have been conducted in countries with developed markets; relatively little research has been conducted in the emerging stock markets of (Southern) Asia, such as Pakistan. This thesis tries to fill the gap in the literature by investigating both the impact of dividend announcements on the share prices of Pakistani firms and the behavioural determinants of dividend policy. The Pakistani market was characterised by a unique tax system, with capital gains totally exempted from taxation before June 2010. This unique feature provides an additional motivation for the researcher to explore the reasons why Pakistani firms pay dividends despite the tax penalty associated with such disbursements.
For the purposes of the research, a mixed-methods approach was employed involving, firstly, an event study to calculate any unexpected share returns around dividend announcements for a sample of 639 dividend events across 202 firms listed on the Karachi Stock Exchange (KSE) over the period 2005-09. Secondly, interviews were conducted with 23 company executives to ascertain their views about the determinants of dividend policy and its perceived impact on share prices. To gain an alternative – investor – perspective on the signalling impact of dividends, 16 financial analysts were also interviewed.
The results of the event study indicate that dividend announcements do not convey information about Pakistani firms to the stock market; insignificant unexpected returns are documented for the announcement date. Nonetheless, the disaggregated results of the event study showed significant unexpected returns for the dividend increase and no-change sub-groups – usually before the actual dividend announcement date. However, consistent with results for developed countries with diverse shareholdings, this research suggests that earnings are the dominant signal in Pakistan, in the context of an interaction effect where earnings and dividends signals re-enforce each other.
The results of the interviews indicated that Pakistani executives primarily base their dividend decisions on earnings, followed by liquidity. However, Pakistani firms do not appear have target payout ratios or employ a constant speed-of-adjustment to decide on payout levels. Indeed, most of the firms indicated that they decided the current payout ratio on an ad hoc basis. More importantly, both sets of interviewees (company officials and financial analysts) believed in the signalling effect, where dividends were sometimes used by investors as a signal of future earnings.

- by Naimat Ullah Khan
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- Corporate Finance, Event Study, Semi-Structured Interviews, Dividends

Shareholder value orientation has commonly been considered a hallmark of corporate financialization. Today, firms increasingly share their profits with shareholders in the form of cash dividends and share buybacks. Yet how the shareholder payouts are distributed by firms from various sectors, sizes and countries remains unexplored. To complement existing accumulation- and asset-centered approaches that focus, respectively, on how resources enter the firm and change its structure, we present a payouts-centered approach to corporate financialization that focuses on how resources leave the firm. This paper analyses firm-level trends in shareholder payouts in OECD member countries for the period 2000-2019, differentiating between types of distributed payouts. We show that shareholder payouts are high across various sectors and geographical locations, and not limited to a small subset of large, US-American financial corporations, but includes ‘big pharma’ and ‘big tech’ as well as Latin American and Israeli firms. The paper sheds light on the nature of the contemporary corporations and contributes to discussions on the increasing financialization of non-financial firms and their rising shareholder value orientation.
Keywords: corporate financialization; corporate sectors; non-financial corporations; shareholder payouts; shareholder value

- by Manuel Aalbers
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- Corporate Finance, Financialization, Business profitability, Firm-Level Data

Project finance (PF) investments have consistently grown in the last years, especially if they concern infrastructural Public – Private Partnerships. PF is a long termed and capital intensive investment, guaranteed by expected cash flows, rather than the assets of the project sponsor. Private entities, normally created as ad hoc Special Purpose Vehicles, are typically highly leveraged with non-recourse loans. Since the shareholders may be likely to sell off their stake well before the expiring date of the concession, a professional evaluation of the SPV at different stages of the project's life seems increasingly important. Fair appraisals fuel and keep alive a secondary market where investment funds and private equity intermediaries start having an active role. Being PF a cash flow based investment, DCF evaluation techniques are generally used; even if the method may seem straightforward, several awkward factors interact-and sensitivity to different parameters, such as inflation or interest rates, greatly matters. To the extent that it can be professionally managed by specialized agents, risk sharing or transmission is not a zero sum game, so positively affecting both the equity and the enterprise value.

- by roberto moro visconti
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- Project Finance, Fiscal Policy and debt Management, Leverage, Dividends
- by Tri Kurniawati Kurniawati
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- Dividends

It is totally surprising that 28% of total banks of Bangladesh are Islami Shariah based
banks. This reasons as well as additional reasons are lying behind what encourages me
to work on a topic like Dividends practices of Islamic Banks in Bangladesh. Islamic
banking has experienced a phenomenal growth and expansion in Bangladesh in the
backdrop of strong public demand and support for the system along with its gradually
increasing popularity all over the world. Hence, a number of full-fledged Islamic banks
have been established, while a good number of conventional bank as well as foreign
banks working in this country.
This paper aims to identify the factors that affect dividend payments for Bangladeshi
Islamic banks and how Islamic banks‟ dividend policy is being affected. Find what the
payout policies that Islamic Banks are following.

- by Hasan Asif Sourav
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- Compliance, Islamic Studies, Islamic Banking, Islamic Finance
- by Finn Førsund
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- Econometrics, Forestry, International Development, Property Rights
- by Joshua Abor and +1
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- Profitability, Design Methodology, Determinants, STOCK EXCHANGE
- by Hardjo Koerniadi
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- Financial Economics, Accounting, Market efficiency, Stocks
- by David Robinett
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- Dispute Resolution, Corporate Governance, Emerging Economies, Economic Development
- by Sijbren Cnossen
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- Real Estate, Information Technology, International Trade, Accounting

This study aims to determine the effect of good corporate governance on dividend policy. The study used a sample of all non-financial companies listed on the Indonesia Stock Exchange. T h i s research also used control variables of firm size, profitability, leverage, firm growth, and free cash flow. The results show that the variables of good corporate governance, firm growth and free cash flow had a positive significant effect on the dividend payout ratio. Meanwhile, the variable firm size, leverage, and profitability had a significant negative result on the dividend payout ratio.

- by Werner R Murhadi
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- Finance, Corporate Governance, Good Governance, Dividends
- by Saul Costa
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- Finance, Corporate Finance, Apple, Dividends
- by Somneuk Davading
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- Public Finance, Intellectual Property, Natural Resources, Dispute Resolution

The objective of this research is to determine the impact of profitability, growth opportunities, risk, liquidity, firm size, leverage, taxation and audit type on dividend payout in order to increase understanding of the determinants of dividend payout within Pakistani corporate environment. To meet the objective of this research, five year financial data from 2009-2014 of listed pharmaceutical companies is used and analyzed to determine the impact of selected variables on dividend payout. Correlation analysis and backward multiple linear regression is applied on the data to determine the association between variables and the impact of selected independent variables on dividend payout. Findings reveal that audit type, liquidity, growth opportunities & profitability are the key determinants of dividend payout of pharmaceutical companies of PSX. 31.90% variation in dividend payout is caused by these variables. Other independent variables including taxation, risk, firm size and leverage insignificantly influence dividend payout decisions of pharmaceutical companies of PSX.

- by Dr Nawaz Ahmad
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- Economic Growth, Taxation, Business Taxation, Financial Risk Management

The Brazilian equity market is characterized by relatively low liquidity, high cost of capital (low firm valuation), and limited new capital raising. Ownership concentration of corporations is high, with large wedges between control and cash flow rights, leading to large differences in pricing of non-voting and voting shares, reflecting the risks of expropriation by insiders. In recent years, much of

- by Daniela Klingebiel
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- Globalization, Property Rights, Accounting, Transaction Costs
- by Justin Lin and +1
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- Economic History, Information Technology, Development Economics, Globalization
- by Joshua Abor
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- Corporate Governance, Law and Management, Dividends, Dividend policy
- by Maximo Torero
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- Economic Growth, Political Science, Productivity, Economic policy
- by Hardjo Koerniadi
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- Financial Economics, Accounting, Market efficiency, Stocks

The present study explores the relationship between dividend policy and firm value with respect to financial crisis. The investigation is based on data of 500 companies listed on the BSE for the period 2001 to 2017. The dynamic panel regression with two-step system Generalised Method of Moments (GMM) is applied. The findings show that dividend policy does not affect firm value definitely. However, the study observes that financial crisis impacted the relationship between dividend behaviour and firm value. Furthermore, the higher dividend yield in post crisis period may indicate evidences of signalling hypothesis.

- by Kalpataru Bandopadhyay and +1
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- Corporate Finance, Dividend Policies, Dividends, Dividend Payments

The issue of dividend policy and its effect on firm value is being debated upon for a long time but still the incongruence continues. Depending upon the intrinsic unique nature of the industry, the dividend policy may have varying impact on firm value. In this context, the present investigates to asses the industry related effect of dividend payout ratio on Tobin's Q and price-to-earnings ratio. For the purpose, three industries viz. pharmaceutical, software and automobile have been considered. The application of dynamic panel regression using Generalised Method of Moments on data for the period 2007-2017 finds mixed results. The dividend policy has relevance for the software industry but not for the other industries.

- by sourav hansda and +1
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- DETERMINANTS OF DIVIDEND POLICY IN PUBLIC QUOTED COMPANIES, Dividends, Dividend Payments, Industry market research
- by Michael Hafeman
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- Actuarial Science, Economics, Accounting, Investing
- by KARAM PAL NARWAL
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- Financial, Dividends, Dividend policy, Finance and Investment Banking

Many studies on relationship between financial performance and dividend policy have resulted to controversial outcome with few studies questioning the intervening effect of cash holdings. The purpose of this study was to evaluate the effect of cash holdings on the relationship between financial performance and dividend policy. The study applied positivism research philosophy and descriptive causal research design. The study was anchored on hypothetical view that the relationship between financial performance and dividend policy of firms listed at the Nairobi securities exchange is not intervened by cash holdings which was tested against a sample size of 31 firms listed at the Nairobi securities exchange selected using purposive sampling technique. The research findings were as follows: There was a significant direct association between operating cash flows and dividend policy which was intervened by cash holdings. In general it was concluded that the link between financial performance and dividend policy of firms listed at the Nairobi securities exchange was significant. The study outcome augment existing knowledge on financial performance and dividend policy for it is evident that firms with ability to generate income directly influence dividend payout ratio and therefore, top management should enhance financial performance and not dividend policy which is irrelevant. Cash holdings intervenes this relationship hence the level of cash balances maintained by the firm explain more on the reason why some firms pay more dividend on increase of profitability levels while others does not. Regulatory bodies such as Capital Market Authority and Centre for Corporate

- by European Scientific Journal ESJ
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- Financial Performance, Dividends