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This study uses an information-asymmetry framework to examine the effect of initiation of credit default swaps (CDS) trading on firm dividend payout policy. We find evidence that CDS initiation is associated with increasing dividends, which is consistent with firms distributing excess free cash flow to mitigate exacerbated manager-equityholder agency conflicts resulting from reduced monitoring by banks following CDS initiation. Additional findings support this explanation by showing that the dividend increases are concentrated among borrowing firms with higher agency cost before CDS initiation, among firms whose lead arranger banks have a relatively less strong reputation in the loan-syndication market, and among firms whose loans are subject to less intense monitoring features—that is, less restrictive loan covenants—following CDS initiation. Additional analyses also suggest that inferences are robust to controlling for the potential effects of CDS initiation on capital structure. This paper was accepted by Brain Bushee, accounting. Funding: Financial support from the Goizueta Business School, the Kenan-Flagler Business School, and the Business School UNSW Sydney is gratefully acknowledged. Supplemental Material: The data and internet appendix are available at https://doi.org/10.1287/mnsc.2022.4337 .

The recent outbreak of coronavirus has caused the worst global economic crisis in the last few decades. A substantial number of companies have experienced severe economic difficulties and were tempted to adjust their financial figures in order to reach certain business thresholds. Maintaining an existing level of dividend payments is a powerful incentive to engage in such activities. The aim of this article was to estimate the effect of the economic crisis caused by the COVID-19 pandemic on the relationship between the estimated level of earnings management and dividend payments made by companies. Research models were estimated using panel analysis. The Modified Jones model was utilized to assess the level of earnings management. A total of 56 companies listed on the Zagreb Stock Exchange in the Republic of Croatia with their financial data from 2015 to 2020 were included in the research sample. Unlike in the case of absolute and income- decreasing discretionary accruals, results indicated that the economic crisis caused by the COVID-19 pandemic positively affected the relationship between earnings management and dividend payments in the case of income-increasing accruals regarding companies that made regular dividend payments. In conclusion, the economic crisis caused by the COVID-19 pandemic was an additional incentive for certain companies to perform income-increasing earnings management to reach the desired level of dividend payments.

The purpose of this paper is to highlight the long-term relationship between stock prices and dividends for a sample of companies listed on the Casablanca Stock Exchange between 2002 and 2016 using the cointegration theory especially its developments in panel data. Our results show that prices are more volatile than dividends, which rejects the possibility of their anticipation by the dividend discount model under the assumption of efficient markets.

Recent empirical studies have shown that innovative firms heavily rely on debt financing. Debt overhang implies that debt hampers innovation by incumbents. A second effect of debt is that it stimulates innovation by entrants. Using a Schumpeterian growth model with endogenous R&D and financing choices, we demonstrate that this second effect always dominates, so that debt fosters innovation and growth at the aggregate level. Our analysis suggests that the relation between debt and investment is more complex than previously acknowledged and highlights potential limitations of empirical work that solely focuses on incumbents when measuring the effects of debt on investment. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

We investigate the impact of state level competition on bank dividends following the passage of the US Interstate Banking and Branching Efficiency Act (IBBEA). Using a sample of top-tier US bank holding companies, we find that in states where extensive deregulation leads to intensified competition, banks pay fewer dividends relative to counterparts operating in states where deregulation took place more slowly. These findings are stronger for banks with lower expected future earnings, suggesting that competition reduces the ability of lower performing banks to continue paying dividends. We also find that banks operating in states characterised by higher competition and less supervisory oversight pay higher dividends than counterparts operating in similarly competitive states with stricter supervision.

To explore how speculative trading influences prices in financial markets, we conduct a laboratory market experiment with speculating investors (who do not collect dividends and trade only for capital gains) and dividend-collecting investors. Moreover, we operate markets at two different levels of money supply. We find that in phases with only speculating investors present (i) price deviations from fundamentals are larger; (ii) prices are more volatile; (iii) mispricing increases with the number of transfers until maturity; and (iv) speculative trading pushes prices upward (downward) when the supply of money is high (low). These results suggest that controlling the money supply can help to stabilize asset prices.

This paper investigates whether the equity market anticipates dividend changes that have large value effects in the days leading to the announcements. In particular, I partition dividend changes into those with large and small value effects based on dividend and firm characteristics and study the abnormal returns preceding the changes by the two groups. T-tests are used to test the difference in mean abnormal returns preceding dividend changes by the two groups, and regression techniques are used to test whether this difference is equal to the corresponding difference for firms that maintain dividends. The results show that the abnormal returns preceding dividend changes that have large value effects are not different from those preceding dividend changes that have minimal value effects or, if there is a difference, it is statistically similar to the corresponding difference preceding unchanged dividends. Thus, it does not appear that the equity market exploits the price effect of dividend changes that have large value effects in the days leading to the events. This contrasts evidence that shows that the equity market anticipates corporate events that have large price effects in the days proximal to the events.

The COVID-19 period made investors to become rational in their decisions as well as allowing them to see the relevance of dividend when firms operate optimally. This research aims to analyse the relevance of dividend payments in the value of the firm. Using panel data for 15 firms listed by the Nigerian Exchange Limited and covering the years 2012 to 2021 with the employment of the Generalised Linear Model and the relevance theory of dividend, the study reviewed that dividend per share and retained earnings significantly influenced the value of the firm. The study reconfirms the relevance of dividend and the value of the firm using Tobin Q. However, dividend yield was found not to be statistically significant to the value of the firm. From the findings, the study recommends that policy makers should ensure that priority is given to selected variables such as dividend per share as their impact strongly affects the value of the firm.

We explore the determinants and value implications of publicly traded real estate companies converting to real estate investment trusts (REITs), which we term REITing, and publicly-traded REITs giving up their REIT status, termed de-REITing. Non-REIT real estate firms that pay relatively high dividends and have high income tax ratios are more likely to convert to a REIT; while REITs that have lower pretax incomes, dividend adjusted operating cash flows, and higher leverage ratios are significantly more likely to de-REIT. REITing generates significant positive abnormal returns (ARs) around the REITing announcement. These positive ARs are concentrated in firms with higher income tax liabilities and firms paying larger dividends pre REIT-conversion. De-REITing announcements generate significant negative ARs, which are mitigated when the de-REITing firm has low potential tax liabilities, or when the firm is cash flow constrained with respect to its dividend payment. Based on these results, we argue that the degree to which REITing (de-REITing) decisions are value generating (destroying) depends on the magnitude of potential tax and dividend implications. We also examine the longer run valuation effects of REITing and de-REITing decisions and find no evidence of a reversion of the short-run announcement effects.

This paper examines corporate tax avoidance involving Dutch special purpose entities (SPEs), or shell companies. We use unique data of the SPEs including the origin and destination country of dividend, interest, and royalty flows passing the Netherlands. First, we present descriptive statistics of these flows which amount to 140 billion euro in 2016. Second, we collect national tax data on the corporate income tax and fiscal treatment of these flows. By combining tax parameters with bilateral flows, we can assess the potential tax gains for multinational enterprises using Dutch SPEs. We find massive tax savings for royalties when Dutch SPEs are used as an intermediate station compared to direct flows between the origin and destination country. We measure this tax gain at almost 3 billion euro in a single year. However, we do not find such tax savings for dividends and interest. We explain where we lack information and hence cannot measure possible tax gains. In regression analysis, controlling for country characteristics, we find that tax differentials partially explain the geographical patterns of income flows diverted through the Netherlands. This paper is one of the first using bilateral income flows as dependent variables instead of FDI stocks or flows.

Kolari, Pynnonen, and Tuncez rely on simulation outcomes to criticize the normalization of firm characteristics employed by Bessembinder and Zhang (2013) to assess returns after major corporate events. However, their simulation outcomes simply verify that a non‐linear normalization is inappropriate if the true relation is linear. The relation between log returns and firm characteristics is unknown, but is unlikely to be linear, as the distribution of firm characteristics is strongly skewed. Here, we report on bootstrap simulations that show our methods provide unbiased estimates with appropriate statistical size and high power to detect abnormal returns when implemented in actual data. Kolari, Pynnonen, and Tuncez also provide empirical estimates that comprise useful sensitivity tests. Their results verify that firm characteristics are useful in assessing whether returns to event firms are abnormal, largely confirm our conclusions with regard to SEOs, M&As, and dividend increases, but show that conclusions regarding IPOs depend on implementation choices.

While addressing climate change is a coarse and urgent problem for all humanity, developing nations also face tremendous pressure on environmental pollution prevention and restraint. Controlling both greenhouse gas (GHG) emissions and air pollution is an important strategy to address the dual issues of climate change and environmental degradation. To make full use of the co-benefits of GHG and pollutant emission reduction, this study uses a computable general equilibrium model to simulate and explore the impact of a carbon tax, sulfur tax, nitrogen tax and their combination on China's various environmental emissions and socioeconomic factors. The results show that the climate synergy brought by levying the sulfur tax/nitrogen tax can fully cover the carbon intensity target. In particular, when only a single nitrogen tax is imposed, the CO2 and SO2 emission reduction targets can be automatically achieved simultaneously. On the premise of fulfilling the reduction target, a governance plan that considers synergies will save nearly 50% of the socioeconomic and welfare costs compared to the case of independent governance. The design of the synergistic tax plan considers a nitrogen tax as the base. Moreover, the tiered tax levying way that gradually increases over time and the tax recycling way of reducing indirect taxes on production can effectively bring down socioeconomic losses, achieve a “double dividend” benefit, and promote the coordinated development of the environment and economy.

This paper revisits the controversial question of whether long-run abnormal returns are associated with major corporate events. Our analyses investigate initial public offerings (IPOs), seasoned equity offerings (SEOs), mergers and acquisitions (M&As), and dividend initiations. In an attempt to resolve ambiguous empirical evidence with respect to these events, we conduct a variety of tests for abnormal long-run performance, including buy-and-hold returns (BHARs), different calendar time approaches, and a recent standardized test. Empirical tests for these different methods consistently detect significant long-run abnormal returns for all four corporate events. We conclude that long-run abnormal returns exist with respect to these major corporate actions.

The diversity literature has long proposed that diversity benefits team performance because the broader range of information, knowledge, and perspectives that members with different attributes brin...

This study intends to research the impact of the board of commissioners structure along with the control variables of return on assets, debt level, firm size, firm growth, and the existence of other priority stackholders on family firm’s dividend policy in Indonesia’s non-financial sector. The research uses panel regression of 116 IDX non-financial listed family firm over the period 2017-2020. In order to explore the effects of board independence, family board, board size, board meeting frequency, and audit committee size on family firms’s dividend policy in non-financial sector in Indonesia. According to the study's findings, for the years 2017 to 2020, the dividend policy of family firm in Indonesia operating in non-financial sectors will be positively and significantly impacted by board independence, board presence from family, the board size, board meeting frequency, and audit committee size.

By definition, the dividend policy is a policy implemented by the management, where the management makes a decision on the size of the dividend to be paid, often taking into account the dividend payment pattern that was implemented in previous years as well. There are a large number of developed theories that try to explain what are the key determinants that influence the shaping of the decision on dividends. All these theories contain their own indicators that try to explain the process and result of the dividend policy. The aim of this paper is to examine what affects the dividend policy of companies listed on the Zagreb Stock Exchange, not limiting itself to dividend theories and their specific variables, but exclusively to examine the influence of selected indicators on the corporate dividend policy of companies listed on the Zagreb Stock Exchange. Indicators whose impact is examined are segmented into two groups. One group is indicators related to the capital market and market indicators: the share of realized turnover of the share in the total share turnover of the Zagreb Stock Exchange, the market capitalization of the company, the share of the company's market capitalization in the market capitalization of the Zagreb Stock Exchange. The second group are profitability indicators, because dividends are paid out of realized profits, so the following indicators belong to this group: earnings per share, return on capital (ROE) and return on assets (ROA). The research uses a dynamic panel model in order to include the influence of previous decisions in the research, which is often important when implementing a policy dividend.

Przedmiotem artykułu jest przedstawienie wybranych, najistotniejszych zmian w ustawie z 15.02.1992 r. o podatku dochodowym od osób prawnych będących skutkiem wejścia w życie ustawy z 7.10.2022 r. o zmianie ustawy o podatku dochodowym od osób prawnych oraz niektórych innych ustaw – dalej Polski Ład 3.0. W szczególności omówiono znowelizowane przepisy dotyczące: kosztów finansowania dłużnego (w tym wyłączania z kosztów uzyskania przychodów kosztów finansowania dłużnego dotyczących transakcji kapitałowych), podatku od przerzuconych dochodów, podatku minimalnego od straty i niskiej rentowności, opodatkowania polskiej spółki holdingowej, ryczałtu od dochodów spółek (estoński CIT), cen transferowych, ukrytej dywidendy.

The information and communication technology, represented by the broadband Internet, has made a profound impact on Chinese urban labor market. However, the effect of broadband Internet on inter-city inequality is less well documented, especially concerning income inequality. This study aims to identify the impact of broadband Internet on income distribution between cities in China and further explore its underlying mechanisms. Based on nationally representative subsamples from the census in 2005, 2010 and 2015, we find broadband Internet is a blessing factor in explaining the inter-city income gap. The conclusion remains stable after overcoming the endogeneity issues with instrumental variables. Interestingly, broadband Internet appears to provide digital dividend for the low-income brackets. Notably, broadband Internet seems to be skill-biased, since it favors highly educated and professional workers, as well as China’s eastern and central regions. Market potential and manufacturing agglomeration are two mechanisms underlying the reducing effects of broadband Internet. These findings provide insights that are valuable for designing policies and strategies aimed at ensuring fairness and efficiency in broadband Internet development.

This study expounds on the debate regarding dividend payouts for different types of politically tied firms in Malaysia. We recognize the heterogeneity of political ties of politically connected firms (PCFs) by government-linked companies (GLCs) and non-GLC PCFs. The results show that PCFs are positively related to dividend payouts and that PCFs, specifically GLCs, pay higher dividends than their counterparts. Additionally, our results demonstrate that high- and low-levered GLCs consistently pay higher dividends than non-GLC PCFs and non-PCFs. These findings imply that GLCs implement special dividend policies, and therefore, a high GLC payout might not be indicative of actual performance. In brief, shareholders and potential investors should be cautious in interpreting firm payout signals.

We estimate a regime-switching model for the equity term structure with Bayesian methods. Our approach accounts for the data sample being unrepresentative of the population distribution of regimes. We find that ( i ) the term structure of expected equity dividend strip returns is downward sloping in recessions and upward sloping in expansions, and ( i i ) the unconditional term structure of expected equity returns is positively sloped. Our estimation shows that the sample unrepresentativeness induces a downward bias in the estimate of the equity term structure slope. We present a regime-switching consumption-based asset-pricing model that matches the empirical findings.

The average annual inflation-adjusted amount paid out through dividends and repurchases by public industrial firms is more than three times larger from 2000 to 2019 than from 1971 to 1999. We find that an increase in aggregate corporate income accounts for 37% of the increase in aggregate annual payouts, and an increase in the payout rate accounts for 63%. Firms have higher payout rates in the 2000s not only because they are older, larger, and have more free cash flow, but also because they pay out more of their free cash flow. Though firms spend less on capital expenditures in the 2000s than before, capital expenditures decrease similarly for firms with payouts and for firms without.

Firms avail themselves of external finance to manage obligations to pay dividends, along with other commitments. Indian firms, which have significant ownership concentration, present a unique opportunity for analyzing the influence of promoter holding on financed dividend payouts. This study also analyzes the dependence of standalone firms (i.e., those that are not part of a business group) on these financed dividends along with the firms in business groups. The study asserts that firm affiliation affects the decision on the type and extent of external capital used to finance payout. Promoter holding has a positive impact on debt as well as equity-financed payouts at standalone firms; the relationship is nonlinear and a higher proportion of promoter holding has a constraining effect on such payouts, supporting the agency cost theory. The size of the firm plays a significant role in firm decisions about financed payouts. Firms with lower operating cash flows and high leverage have a higher tendency to finance their payouts.

The main aim of the study is to compare share repurchase and dividend payout trends of listed non-financial and non-resource companies in Poland and South Africa over the period 2005–2015. Although South Africa is a developing country with a dualistic economy, the country is characterized by a sophisticated stock exchange which is comparable to that of most advanced economies, while Poland was reclassified from emerging market to developed market status, effective as from 24 September 2018. Comparative analysis provides insights on the regulatory differences and the effect therefore on share repurchase and dividend behaviour, and whether these countries mirror the excessive payout behaviour observed in the United States of America (US). The study results show that in both countries dividends are the dominant form of payouts to shareholders. Moreover none of the examined countries mirrors the excessive payout behaviour observed in the US – neither in Poland, nor in South Africa did share repurchases surpass dividends. Regulatory differences between Poland and South Africa, however, affected the observed trends in payout behaviour between the two countries. Głównym celem opracowania jest porównanie trendów w obszarze nabywania akcji własnych i wypłaty dywidendy przez spółki niefinansowe i niezasobowe notowane na giełdach w Polsce i RPA w latach 2005–2015. Chociaż RPA jest krajem rozwijającym się o dualistycznej gospodarce, kraj ten charakteryzuje się zaawansowaną giełdą papierów wartościowych, która jest porównywalna do większości zaawansowanych gospodarek. Natomiast Polska została przeklasyfikowana z rynku wschodzącego na status rynku rozwiniętego dnia 24 września 2018 r. Analiza porównawcza dostarcza wglądu w różnice regulacyjne i ich wpływ na zachowania spółek w obszarze polityki wypłat na rzecz akcjonariuszy (nabywanie akcji własnych i wypłaty dywidend) oraz pozwala określić, czy kraje te odzwierciedlają zachowania związane z payout policy obserwowane w Stanach Zjednoczonych. Wyniki badania pokazują, że w obu krajach dywidendy są dominującą formą wypłat dla akcjonariuszy. Ponadto w żadnym z badanych krajów nie zaobserwowano zachowań w zakresie wypłat na rzecz akcjonariuszy występujących w USA – ani w Polsce, ani w RPA środki wydane na nabycia akcji własnych nie przewyższały wartości wypłaconych dywidend. Różnice regulacyjne pomiędzy Polską a RPA wpłynęły jednak na obserwowane trendy w zachowaniach wypłat pomiędzy tymi dwoma krajami.

This study shows that skilled-labor-intensive firms have lower dividend payouts. A one-standard-deviation increase in skilled labor intensity on average results in a 0.74 percentage point decline in the propensity to pay dividends and a 0.72 percentage point decrease in dividend payout ratio. Our evidence suggests that greater labor adjustment costs (LACs) of skilled labor increase future cash flow uncertainty, which discourages managers from paying dividends. Consistently, we find that an exogenous increase (decrease) in LACs following the shock of 2017 H-1B policy changes (the shock of 2005 Hurricane Katrina) leads treated firms to lower (heighten) their dividend payouts. Collectively, these findings indicate a strong dampening effect of LACs on corporate dividend payouts.

Using data from Korea, we show that the second-tier exchange—also known as the entrepreneurial market—assigns higher valuations to growth-oriented (i.e., small yet intangibles-rich) companies despite their low profitability. In contrast, the main board favors companies with stable cashflows and regular payouts to shareholders. The difference between the two exchanges is most pronounced when companies are conditioned on their stage in life cycle as proxied by dividend payments. That is, the “growth” valuation is most evident in earlier-stage companies (i.e., dividend non-payers) of the second-tier exchange while the “cashflow” valuation is strongest in later-stage companies (i.e., dividend payers) of the main board. Further analysis supports the notion that the second-tier exchange distinguishes itself from—and thus complements—the main board by helping keep corporate growth opportunities in stock prices. Conversely, the results indicate that the main board fails to capitalize corporate growth options into firm value, as most companies therein have stable cashflows from unique assets and market position (i.e., economic rents) as the main value driver.

We examine whether dividends serve as substitutes or complements to accounting information in firm valuation. Consistent with dividends substituting for earnings information, we find that dividend paying firms have 11%–15% lower earnings response coefficients (ERCs) than non-payers. We find more substitution when the dividend provides a stronger signal of permanent earnings: when the firm is less likely to cut the dividend, when the firm is likely to fund the dividend out of earnings rather than cash reserves, or when the dividend is larger. We then show that dividend payers have lower absolute returns, less trading volume, and fewer analyst forecasts at the earnings announcement (EA), suggesting that dividend payers attract less attention to their less informative EAs. Finally, we show that the lower EA attention translates into less earnings management and fewer earnings-related disclosures for dividend payers relative to non-payers. Collectively, this evidence suggests that dividends supply information about permanent earnings and, although costly, could be an efficient way for some firms to satisfy investors’ demand for earnings information.

This study discovers the relation between corporate governance factors and earnings quality and finds that increases in dividends and foreign ownership deter earnings management. The author shows that dividend increases and foreign ownership enhance earnings quality, but they appear to be substitutes in that role. In other words, as foreign ownership increases, the influence of dividends in increasing earnings quality decreases. Improving transparency through dividend increases and monitoring by foreign institutional investors are substitutes in preventing earnings management.

This paper seeks to present the Interference Management for the Coexistence of DTTV and LTE Systems within the proposed digital dividend band in Nigeria. The study focused on LTE Down-link (DL) signal from the nearest cell site interfering with the Digital Terrestrial Television (DTTV) fixed outdoor receiving antenna in Port Harcourt, Nigeria. The qualitative signal analysis of the DTTV systems is essential as DTTV system cannot start to operate in the newly formed frequency band without the evaluation of the possible harmful influence of the coexisting systems. This research work investigated the Compatibility of the two systems and the Probability of interference of Channel 17 (490MHz) and Channel 51 (693MHz) when DTTV and LTE systems coexist within the proposed Digital Dividend band. A test-bed approach method was adopted for the generation of the required simulation data. Star Time transmitting Station in Port Harcourt and Smile LTE 4G Communication LTE Base Station (eNBs) Network also in Port Harcourt were adopted as the Victim Link Transmitter (VLT) and Interfering Link Transmitter (ILT) respectively. Data was obtained, analyzed, and evaluated. It was observed from the simulation result that the probability of interference is a function of the separation distance between ILT and VLR. The Compatibility analysis result shows that the resulting C/I is above the protection criteria (19dB), that is there’s a minimal rate of interference. Hence, the interference issue can be managed when the two systems coexist in700MHz band. It was also established that DTTV channel 51 suffers more interference when compared with DTTV channel 17 for the same separation distance. The study recommended the minimum protection distance approach (Interference Avoidance method) as the interference management techniques when DTTV and LTE systems coexist in the proposed digital dividend (700MHz) band in Nigeria.

PurposeThe purpose of this paper is to establish the mediating role of cost of capital in the relationship between capital structure and loan portfolio quality in Uganda's microfinance institutions (MFIs).Design/methodology/approachA cross-sectional research design was adopted to collect data and partial least squares structural equation modelling was used to test the study hypotheses.FindingsCost of capital partially mediates the relationship between capital structure and loan portfolio quality. Hence, cost of capital acts as a conduit through which capital structure affects loan portfolio quality.Research limitations/implicationsCost of capital was generalized as financial and administrative costs. The impact of costs like dividend pay-outs, interest rates and/or loan covenants on loan portfolio quality could be investigated individually.Practical implicationsMFIs should be vigilant about loan recovery by using strategies like credit rationing to ensure timely repayments.Originality/valueThe study contributes to the ongoing academic debate by identifying the significant indirect role of cost of capital in explaining loan portfolio quality.

Purpose This study aims to examine the relationship between the types of discontinued operations (i.e. income-increasing versus income-decreasing) and a firm’s dividend payout policy. The authors extend our analysis to examine whether equity investors react differently to dividend payout changes that are preceded by the reporting of different types of discontinued operations. Design/methodology/approach Ordinary least squares regressions are used to test the association between discontinued operations and dividend payouts. The investor response test uses cumulative abnormal return around the announcement of dividend payout changes. Findings The authors find that firms temporarily increase (decrease) their dividend payout in the quarter following the reporting of income-increasing (income-decreasing) discontinued operations. The authors further find that these results are stronger when the magnitude of the income increase or income decrease is larger and when firms report disposal gains or losses. Although prior literature finds evidence that dividend increases are associated with a significant positive market reaction, the results show that investors do not react positively to dividend increases that are preceded by reporting income-increasing discontinued operations. Originality/value This study adds to the literature on the effects of financial reporting (i.e. the types of discontinued operations) on a firm’s payout policy (i.e. dividend payout). The authors also add to the literature that examines investors’ perceptions of a firm’s payout changes when such changes are transitory in nature.

The authors apply economic value added (EVA) style analysis to four corporate actions: acquisitions, share repurchases, stock splits, and dividend announcements. Firms acquiring public targets provide significant shorting opportunities on value-destroying growth and “wise” restructurers. Acquiring firms with private targets provide longing opportunities on underinvesting and wise restructurers. For share repurchases, the authors find consistent alpha opportunities on repurchasing firms by longing their stocks, with the highest alpha on the wise restructurers. The post-announcement returns for stock splits were negative for value destroyers and positive for restructurers. For dividend increases, post-announcement effects are small except for positive alpha on the wise restructurers. For dividend decreases, negative abnormal returns continue for the value destroyers and restructurers. The best longing opportunity is on the stocks of share repurchasing companies in a wise restructurer position, while the best shorting opportunity is on the stocks of dividend-decreasing companies in a value-destroyer position. For active investors, EVA style analysis illuminates the naivete of a “one size fits all” trading strategy on corporate actions.

Dividend decisions are the approaches undertaken by the management of an organization to facilitate proper allocation of the cash flows from the business activities. They provide reasonable guidelines for the organization's actions based on the satisfaction of the investors' interests and organizational objectives. They strive to achieve the goals while they seek substantial profitability of the organization. The majority of the studies involving dividend decisions focused on determining the necessity for dividend policies in an organization. Others focused on assessing the Influence of the dividend policies on the stock return of the firm. Therefore, this study investigated the effects of dividend decisions on market performance of share prices for commercial banks listed at Nairobi Stock Exchange. The specific objective is; To determine the impact of dividend payouts on the stock performance of the commercial banks listed at Nairobi Stock Exchange The independent variables in the study is dividend payouts. The dependent variable was the performance of share prices for commercial banks listed at Nairobi Stock Exchange. The theoretical review included the bird in hand theory, information signaling theory, and tax differential theory. The research used a descriptive research design approach for 12 commercial banks' target population in Kenya. The study used secondary sources to collect data, which are the bank's annual data published on the Nairobi Stock Exchange website. The research used the SPSS software for analyzing the collected data. The results show that the constant dividend pay-out ratio and residual dividend policy are the major determinants of market performance of share prices. Discretional dividend policy does not significantly influence market performance of share prices of commercial banks. The study recommends the commercial banks to constantly make proper dividend decisions to ensure good market performance of the share prices.

High school is a link between compulsory education and higher education in China. The precise projection of high-school population is also a key premise of the rational high-school educational-resource allocation which is of importance to educational quality. Improving the education quality can promote the population quality and increase the accumulation of human capital to create a new geographic dividend and contribute to the new development model of dual circulation. Encouraging governments at all levels to increase financial investment in education is a demand-side dimension to study the demand for high-school educational resources. When promoting human capital accumulation, China should transform the reliance of its economic growth from “demographic dividend” to “talent dividend” to build a new development model of dual circulation. This paper built a Leslie model by matrix laboratory (MATLAB) to predict the high-school population and study the demand for high-school educational resources.

El objetivo de este trabajo es analizar las acciones sin derecho de voto autorizadas por la Ley General de Sociedades Mercantiles (LGSM) para determinar, ante el silencio de la ley, si el derecho al dividendo preferente es o no consubstancial a la acción. Para ello, se utilizan los métodos inductivo, deductivo y bibliográfico y se estudian las acciones de voto limitado a las que la LGSM sí confieren ese derecho. El resultado es que, de acuerdo con la doctrina y diversas normas de la LGSM, el dividendo preferente es una compensación por la privación del voto, por lo que, conforme los principios de igualdad y mayoría de razón, las acciones sin derecho de voto, deben conferir cuando menos la misma compensación económica prevista para las acciones de voto limitado, a menos que haya renuncia o disposición gratuita expresa del accionista.

The pharmaceutical industry plays a considerable role in developing vaccines and medications for prevention and reduction in disease incidence, treatment of ailments and enhancement in quality of life by contributing to innovative research and engaging in technological advancements to meet the complex healthcare demands of the population. India globally occupies 3rd position in pharmaceutical production by volume and 14th by value. The domestic pharma industry consists of 3,000 drug companies with 10,500 manufacturing units. It delivers drugs to maintain health or prevent infections and alleviate diseases distressing the global population. The current research study aimed to reveal the determinants of dividend pay-out of Indian pharmaceutical companies. Dividend policy is a crucial financial policy on paying cash dividend presently or paying an increased dividend at a later stage. At times of cash surplus, the management could pay out a portion or all of those surplus earnings in the form of cash dividends or to repurchase the company's stock through a share buyback program. The objectives of the current research study are, to identify the factors determining dividend payout of pharmaceutical companies in India, to examine the relationship between dividend payout and corporate profitability and to analyse the impact of dividend policy on the firm value. Secondary data was collected from the published annual reports for the years 2015-16 to 2019-20.

In this paper, we study a dividend maximisation problem for a Brownian risk model as a surplus and a Markov-switching model describing the preference rate of an insurer. The preference rate can attain two values – a positive and a negative. The negative preference reflects the situation when the uncertainty prevails and the insurer shows more waiting tendency. In the times of the positive preference the insurer is in modus operandi. We solve the problem of finding the optimal dividend payout strategy for the setting with a classical ruin concept as well as for the case of a Parisian ruin with an exponential delay. In the first case, the optimal strategy turns out to be of a barrier type for the positive preference rate and no dividends are paid in the times of the negative rate. The optimal barrier increases with increasing intensity to switch into the state with a negative preference and shows the inverse dependence on the counterpart intensity. In the case of Parisian ruin, the optimal strategy depends on the parameter of the ruin delay and the severity of the negative preference rate. If the expected delay is relatively short the optimal strategy remains a barrier (even equal to zero) in the positive state with no dividends being paid in the negative state. If the expected delay is long, the optimal strategy in the negative state might change from not paying dividends to a band strategy. We give explicit expressions for the value functions and present conditions determining the type of the optimal strategy. Both problems are illustrated by examples.

Dividend policy is the company's policy in determining how much profit will be paid as dividends to investors. Dividend policy is the most important determination for a company because it is not only a source of investment profit, but also shows the company's performance. In making dividend payment policies the company considers financial ratios that can have an influence on dividend payment policies. The purpose of this study is to examine the role of company size to moderate the effect of profitability ratios, leverage ratios and activity ratios on dividend policy. This study makes the service sector companies listed on the Indonesia Stock Exchange in 2014-2018 as a research population of 289 companies with the research sample taken using purposive sampling technique as many as 69 companies. This research method uses descriptive quantitative method. Data analysis was processed using Partial Least Squares (PLS) analysis with Warp-Pls 6.0 software. The results of this study indicate that the profitability ratios and activity ratios affect the dividend policy positively and significantly, while the leverage ratio affects the dividend policy negatively and significantly. Firm size strengthens the effect of profitability ratios on dividend policy but does not moderate the effect of leverage ratios and activity ratios on dividend policy

Dividend policy is a company's decision to determine whether the profits earned by the company will be distributed to investors in the form of dividends or by increasing the company's retained earnings. The purpose of this research was to determine the effect of earnings per share, investment opportunities, total asset turnover, and collateralizable assets on dividend policy in consumer goods industry entities listed on the Indonesia Stock Exchange for the 2015-2019 period. The population in this research was the consumer goods industry listed on the Indonesia Stock Exchange of 52 entities in 2015-2019. The technique of determining the sample used is purposive sampling. The samples obtained are 13 companies incorporated in the consumer goods industry sectors in the Indonesia Stock Exchange for 2015-2019. Based on the analysis, the result shows that the variable total asset turnover partially has a significant positive effect on dividend policy. Collateralizable asset variable has a significant negative impact on dividend policy. In contrast, the investment opportunity variables and earnings per share don't affect dividend policy. This research can be used as a reference for stakeholders in the company to consider the total asset turnover that affects dividend policy in a company.

This research was conducted to analyze the effect of investment decisions, funding decisions, and dividends on the value of companies in the manufacturing companies in the food and beverage sector, which are listed on the 2016-2020 Efek Stock Exchange in Indonesia. The sample used in this research is 6 samples of mmanufacturing companies in the food and beverage sector issues listed. The sampling criteria are companies listed on the Indonesia Stock Exchange 2016-2020, companies publishing annual financial reports for the 2016-2020 period in a row, companies having complete financial statement data related to the variables in the study, and the company earned a net profit in the 2016-2020 period. This study aims to analyze and prove empirically the effect of investment decisions, funding decisions, and dividends on firm value. The research data collection method uses secondary data. The sampling method uses the purposive sampling technique. The data analysis method uses multiple regression analysis. Based on the results of the test, it is known that simultaneously, it shows that the investment decisions, funding decisions, and dividend decisions have an effect on the value of the companies in the Indonesian food and beverage sector that are listed in 2016. The results of the partial test show that the investment decision has an significantly positive effect on the value of the company, the funding decision has no significant impact on the value of the company and has an significantly positive effect on this decision.

The Population reference Bureau policy brief, (Gribble and Bremmer, 2012):1) described the demographic dividend as “…the accelerated economic growth that may result from a decline in a country’s mortality and fertility and the subsequent change in the age structure of the population. With fewer births each year, a country’s young dependent population grows smaller in relation to the working-age population. With fewer people to support, a country has a window of opportunity for rapid economic growth if the right social and economic policies developed and investments made”. Several South Africa based studies have explored age structure and the prospects of a demographic dividend. These studies range from those that explore timing of the dividend to those that investigate readiness to harness the dividend. Three aspects of the demographic dividend are investigated by this research. Firstly, the paper will explore the age structure of KwaZulu-Natal population to ascertain the timing of the age-structure (youth bulge) that is a pre-requisite for the dividend. Secondly, demographic, health and education characteristics that are knows to affect the achievement of the dividend will be examined. Lastly, the extent of integration of the demographic dividend into Integrated Development Plans (IDPs) in the province will be explored.

The research objectives in this study are to find out and analyze the effect Investment Opportunity Set, To find out and analyze the effect Operating Profit Margin, To find out and analyze the effect of Cash flow from operating activities, to find out and analyze the effect Cash flow to Equity to the dividend payout ratio, to determine and analyze the effect of the Investment Opportunity Set, Operating Profit Margin, Cash Flow from Operating Activities and Cash Flow to Equity simultaneously on the Dividend Payout Ratio in metal companies listed on the Indonesia Stock Exchange for the 2016-2020 period. This study uses a quantitative approach, the regression analysis technique used in this study is a multiple linear regression analysis technique. The results of this study indicate that there is an influence between the Investment Opportunity Set on Dividend Policy. There is an effect of Operating Profit Margin on Dividend Policy. There is no influence of Cash Flow From Operating Activities on the Dividend Policy in. There is an effect of Cash Flow to Equity on Dividend Policy and the Fcount Value is 12, 130 with a significant level of 0.000, while Ftable is known to be 2.68. Based on these results, it can be seen that Fcount > Ftable (12,130 > 2,68) so that H0 is rejected and Ha is accepted so it can be concluded that the variables of Investment Opportunity Set, Operating Profit Margin, Cash Flow From Operating Activities, Cash Flow to Equity together have significant influence on the Dividend Policy of Metal Companies Listed on the Indonesia Stock Exchange for the 2016-2020 period.

In summer 2020, the Russian Federation initiated amendments to agreements on double taxation avoidance concluded with foreign States. The President of the Russian Federation outlined the goal of this procedure, namely: to ensure the collection of tax on dividends and other payments in the amount of at least 15%. It is extremely curious that the change in such tax agreements correlates with the legal institution of the re-domiciliation of foreign companies to the Russian jurisdiction (to special administrative regions on the Oktyabrsky and Russian Islands). New provisions of agreements on the avoidance of double taxation in conjunction with the re-domiciliation procedure, as well as the existing mechanism for voluntary declaration of accounts and assets, can potentially bring the fight against offshorization of the domestic economy to a new level.The aim of the study is to compare the financial and other operating conditions of an international company registered in the order of re-domiciliation in a Russian special administrative region and an organization registered in a “low-tax” (offshore) jurisdiction. To achieve this goal, analytical and comparative legal research methods were used, which made it possible to draw the following conclusions: in the changing circumstances, the Russian special administrative regions are approaching in terms of the conditions for carrying out commercial activities and the volume of financial preferences provided to traditional offshore jurisdictions. However, in order to activate the process of re-domiciliation of foreign companies to the Oktyabrsky and Russky Islands, it is necessary to eliminate the shortcomings of legal regulation by amending the existing regulatory legal acts.

Parental child-related spending represents an important pathway to promote children’s human capital development and material well-being. It is also, however, a pathway that perpetuates social inequalities given the well-known socioeconomic divide in parental spending on children. Although several studies have documented the extent to which current family income is associated with spending on children, we still know little about the causal effects of additional income on child-related spending across the socioeconomic strata. In this paper, I examine the effects of income gains due to universal and unconditional cash transfers from the Alaska Permanent Fund Dividend on child-related spending. Using longitudinal household expenditure data from the 1996–2015 Consumer Expenditure Surveys, I exploit exogenous variation in the generosity of the Alaska Dividend to estimate short- and long-term disparities in parental expenditures resulting from payouts. Results provide a unique opportunity to compare the behavior of high- and low-income parents after an income boost. I find that low- and middle-income parents use cash transfers to catch up with their more affluent counterparts in the short and long term. Low-income parents are, however, unable to keep up with the long-term increases in child-related spending made by their middle-income counterparts. Implications of results for the reproduction of socioeconomic inequalities and for current and proposed cash-transfer policies are discussed.

Local governments have the task of increasing regional cash income, one of which is obtained through dividends from investments. The liquor industry is a business field that is closed to investment activities because it is against the general morality of the Indonesian people, but in fact there are limited companies whose shares are owned by local governments. This study uses a maqa>s{id syari>’ah approach from Jaseer Auda's perspective. So that it is obtained: first, the local government's policy to invest in the liquor industry with the excuse of adding to the APBD is wrong. Actually, liquor investment does not have urgency to have an economic or social impact, it actually causes underdevelopment of human development and human rights violations. Local governments should have protect the public by making policies so that people do not drink alcohol instead of making them consume alcohol because of the investment in that sector. second, investment in liquor only provides a few benefits, on the contrary the harm (danger) caused is much greater, local governments need to take priority policies to eliminate harm rather than take a benefit. Key word: Liquor Investment, Local Government, Maqa>s{id Syari>’ah

What principles of social justice apply to the European Union? This paper has three parts that together challenge Philippe Van Parijs's most recent proposals for how to think about justice in Europe. For Van Parijs, the EU represents an opportunity to begin globalizing a universal basic income that should, in time, be extended to the whole planet. In the first part of this paper, I recapitulate Van Parijs's main line of argument. In the second, I query the philosophical grounds for Van Parijs's argument that the EU must become a fully-fledged federal transfer union-a union, that is, that aims to attain an egalitarian distribution across all European citizens taken as individuals (rather than as members of nation-states). In the third, I challenge whether a European Basic Income-the euro-dividend-would work, as a policy, in quite the way envisaged by Van Parijs. I then conclude with some implications for how to think about justice for the EU.

We examine how the introduction of credit default swap (CDS) trading on the debt of individual firms affects corporate payout policy. We find that firms increase payouts to shareholders after the introduction of CDS trading on their debt. This suggests that CDS-referenced firms determine payout policy in response to decreased creditor monitoring rather than apply more conservative policies to avoid renegotiations with tougher CDS-insured creditors. Moreover, the increase in payouts after CDS introduction is more pronounced in firms with smaller institutional ownership and greater bank debt dependency. Finally, we show that firms tend to repurchase stocks rather than increase dividends when they increase payouts after the introduction of CDS trading. (JEL G32, G35)

Purpose This study aims to investigate which stock characteristics and corporate governance variables affect stock price overreaction and volatility during the COVID-19 pandemic period. Design/methodology/approach A set of stock characteristics and corporate governance variables which may affect price overreaction and volatility were identified following a review of the literature. A dummy variable was created for the cross-sectional analysis to take into account the unique sector effect in the consumer staples sector. Out of sample analysis was conducted to confirm the robustness of the main results. Findings The empirical results consistently show that size, dividend and trading volume determine the stock price reactions when the market is in turmoil during the pandemic period. Board size and average board tenure exhibit moderate effects on reducing the stock price reactions, but the effects become insignificant while controlling for the firm characteristics in the regressions. The results remain robust when tested out of the sample. More interestingly, a consumer staples sector effect is identified and tested. The test results show that the consumer staples sector effect mitigates the stock price reactions. Practical implications The results have practical implications for investors who aim to manage desired levels of risk in their portfolios during the pandemic. The results also provide meaningful insights to stock market speculators regarding pandemic-related speculation opportunities. Originality/value This study makes a meaningful connection between the irrational stock market anomalies and the COVID-19 pandemic.

Keputusan dividen di perusahaan mempengaruhi ekspektasi investor dan pada gilirannya mempengaruhi nilai perusahaan. Oleh karena itu, keputusan dividen menjadi perhatian manajemen. Pada periode 2016 hingga 2019, industri makanan dan minuman Indonesia mengalami pertumbuhan. Penelitian ini mengkaji faktor-faktor yang mempengaruhi kebijakan dividen perusahaan makanan dan minuman di Indonesia pada periode pertumbuhan 2016 hingga 2019. Faktor-faktor tersebut adalah profitabilitas, likuiditas, dan leverage. Selanjutnya variabel moderating yaitu pertumbuhan penjualan digunakan untuk melihat apakah pertumbuhan penjualan mempengaruhi profitabilitas dan selanjutnya mempengaruhi kebijakan dividen. Metode yang digunakan dalam penelitian ini adalah regresi linier berganda dengan menggunakan data panel. Sampel yang dipilih menggunakan purposive sampling untuk mengetahui perusahaan yang secara konsisten memberikan dividen yang berasal dari laba dan bukan dari hutang atau sumber dana lainnya. Hasil dari penelitian ini adalah profitabilitas, likuiditas dan leverage berpengaruh signifikan. Namun profitabilitas dan likuiditas tidak memiliki hubungan positif yang signifikan tetapi memiliki hubungan negatif yang signifikan. Perbedaan ini karena ketika industri tumbuh, perusahaan menginvestasikan dananya secara internal untuk mengejar pertumbuhan sehingga alokasi dana yang digunakan untuk dividen berkurang.