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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 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.

Dividends (profit share) and profitability (financial performance) still remain unarguably among the most salient attributes of financial research. This paper is interested in empirically exploring if and how signalization theory works in general while being interested in also exploring to what extent dividends may account for the corporate profitability being corporate financial performance in particular. Dynamic panel regressions are performed to test our predictions on twelve (12) different models for an emerging market economy with a sampling time window spanning 2000 through 2018 for 45 listed companies. Financial firms (FFs) versus Non-Financial firms (NFFs) are examined separately and compared together. Although results usually document that (present) dividends tend to be irrelevant in accounting for (signalling future) corporate profitability. However, we have found evidence that dividends, for NFFs, were documented to be relevant in explaining future corporate profitability when the regressed variable is proxied as Return on Capital which may be captured as Earnings Before Tax/Paid-in Capital. In particular, the relationship between present corporate dividend distribution and future corporate profitability is positive, suggesting the higher (lower) the dividends the higher (lower) the profitability. In addition, of all the models tested, for a sizeable fraction, we have also found significant linkage between the lagged and the leadership values of the dependent variable being corporate profitability or corporate financial performance, either for FFs or NFFs if not both

We develop a structural model of the firm that allows after-interest cash to be directed to dividends, buybacks or some combination thereof. We study the effects of dilutions and buybacks on the value of the firm's claimants and on options written on the stock. We distinguish between options on equity and options on individual shares and value both types. We examine employee stock options and establish how their value changes in accordance with changing payout policies. Our model allows us to quantify and analyze the wealth transfer that occurs from shareholders to holders of employee stock-based contingent claims.

PurposeThe paper aims to measure the magnitude of the event-induced return anomaly around bonus issue announcement days in Turkey for recent years. Also, by describing the information content of these announcements with the current data, the study tries to find out the factors that cause return anomaly in Borsa Istanbul when firm boards release the bonus issue decision.Design/methodology/approachThe paper conducts event study methodology for detecting market anomaly around bonus issue announcements. For the pairwise comparison purpose, t-test and one-way ANOVA methods are applied to examine if abnormal returns vary according to the information content of the announcements.FindingsAnnouncement returns for bonus issues from internal resources outperform the issues that are distributed from last year's net income as bonus shares. Findings indicate different return behaviour among internal resources sub-groups. Findings also suggest that investors in Turkey welcome larger-sized issues, while cumulated returns for the initial offers significantly differ from the latter issues.Research limitations/implicationsFindings are limited to the Turkish equity market. Also, the Public Disclosure Platform of Turkey, which is the main data source of the study, does not provide bonus issue announcements before 2010. Therefore, the previous year's data cannot be included in the analysis.Originality/valueThis paper is novel in terms of considering the main resources of the bonus issue in detail to measure the announcement's impact on stock returns.

This research aims to analyze the factors that affect the company’s opportunities to distribute dividends, and based on those opportunities, this research further identifies the factors that affect the size of dividends to be distributed by the company. The research sample was taken from manufacturing companies listed on the Indonesia Stock Exchange for 2016-2019. The regression models used were logistic regression to analyze the variables affecting the company’s opportunities of dividends and multiple linear regression to analyze the variables affecting the size of the dividends to be distributed. This research finding revealed that the variables affecting the company’s opportunities of distributing dividends were profitability, liquidity, and company size. However, of the three variables, only profitability affected the size of the dividend distributed by the company.

Motivation: Dividend pay-out is a frequently undertaken research issue. However, there is no study on the impact of concentrated ownership on adjustment of dividend amount to investor sentiment for pay-outs. The paper contribute to the literature by filling the research gap regarding the catering effect in the context of principal-principal agency conflict and type II agency costs, monitoring hypothesis and expropriation hypothesis. Aim: The aim of the article is to investigate an impact of the first and second-largest shareholders on an adjustment of dividend pay-outs to investor sentiment for dividends. To achieve the aim, two hypotheses have been formulated, i.e. H1: if the first-largest shareholder is a strategic investor, a catering effect weakens; H2: an existence of significant second-largest shareholder moderates the extent to which companies cater to investor sentiment for dividends. Results: There are three main finding: 1) the number of shares held by the first-largest shareholder is lower in dividend payers, while the number of shares held by the second-largest shareholder is lower in dividend non-payers; 2) listed companies from electromechanical industry sector cater to investor sentiment for dividends; 3) both research hypotheses have not been satisfied.

The article considers the essence of the company's market value, clarifies the concept of enterprise capitalization. The author analyses Russian and foreign studies devoted to the identification of quantitative factors that affect the market value of companies. In the analysis of domestic research, the author pays special attention to the oil and gas and electric power industries of the economy. The analysis of foreign studies includes companies from Italy, Indonesia and Jordan. The paper analysed the structure and dynamics of the Russian stock market, the influence of revenue, net profit, the level of dividend payments, return on assets, the ratio of borrowed and own funds, as well as the return on sales by the amount of the market value of electric power companies whose shares are traded on the Russian stock market. The study identifies the main quantitative factors affecting the capitalization of companies. The author determines the directions of further research.

The authors conduct a big-data analysis to assess the pricing impact of dividend announcements. They join the traditional cumulative abnormal return (CAR) approach to estimating abnormal returns with economic value added (EVA) style analysis. The empirical results are significant for a sample of 172,481 dividend announcements during the 23 years from 1997–2019. For active investors, alpha-generating trading returns may be available by longing the stocks of dividend-increasing companies and shorting the stocks of dividend-deceasing companies. A notable finding linked to EVA style analysis is that alpha returns on dividend-increasing companies were available on the stocks of value-creating growth companies, the stocks of underinvesting companies, and especially the stocks of “wise contraction or cyclical restructuring” companies in need of a turnaround growth signal. Alpha returns on dividend-decreasing companies were available on the stocks of value-destroying growth companies and the “wise restructuring” companies. The authors also find significant dividend announcement CARs and potential alpha-generating trading opportunities across 10 S&P-classified sectors. TOPICS:Security analysis and valuation, quantitative methods, big data/machine learning, performance measurement Key Findings ▪ The authors conduct a big-data analysis of 172,481 dividend announcements on stock returns in the 1997–2019 period. Their CAR findings on dividend-increasing and dividend-decreasing companies confirm both information signaling at time of announcement and the potential for generating alpha-generating trading returns (long–short) during the immediate days thereafter. ▪ Based on EVA style classifications, they find that alpha returns on dividend-increasing companies were available on the stocks of value-creating growth companies, the stocks of underinvesting companies with positive EVA (ROIC > WACC), and especially, the stocks of “wise restructuring” companies in need of a turnaround growth signal. Alpha returns on dividend-decreasing companies were potentially available by shorting the stocks of value-destroying growth companies and the “wise restructuring” companies. ▪ They also find significant dividend announcement CARs, along with potential alpha-generating trading opportunities, across 10 S&P-classified sectors.

Information about companies published in a news feed is invariably tinted by emotional tonality. As such, resultingperceptions may influence the opinion of market players, and consequently affect the dynamics of a company’s shareprice. This study aims to evaluate various hypotheses about the impact of the tone of news items regarding dividends,capital expenditures, and development on the stock prices of Russian companies. Information disclosure is extensivelystudied, and there have been limited studies on the effect of disclosures on Russian companies. However, until now, therehave been no research studies which verify hypotheses on the influence of news sentiment on corporate share prices inthe Russian market. This analysis was conducted using data from 49 Russian public companies included in the Moscow exchange indexover the period from the end of 2017 to the beginning of 2019. To account for the proximate impact of news items onconsequential market phenomena, an event study methodology was applied in order to estimate and construct themodels of dependency of cumulative abnormal return (CAR) on news tone level, and control for financial and nonfinancialfactors. Our results provide evidence for the positive impact of the tone of news texts on the share prices of Russian companies.The increase in news tone by one standard deviation leads to a cumulative abnormal stock return increase of 0.26percentage points. This result is consistent with previous research conducted on data from developed stock markets.Moreover, the relationship between the tone or sentiment level of a news item and the stock price reaction is linear,without the diminishing marginal effect. Our conclusions should prompt companies to invest effort in delivering information in a tonally positive way,highlighting the most positive news. Investors, in turn, should rationally approach the interpretation of publishedinformation.

The purpose of this article is to examine the attractiveness of investing in shares of listed companies that regularly pay out dividends depending on the type of the first-largest shareholder. In order to achieve the aim of the paper, two following research questions we formulated: 1) in which companies, broken down by type of the first-largest shareholder, is the highest dividend payment observed? 2) considering the main shareholder, owning shares of which dividend companies is most beneficial for a stock market investor? Furthermore, the research hypothesis is: when investing in dividend, the most attractive investments are those companies in which the most shares are held by institutional investors and the State Treasury. The research was conducted on non-financial companies listed on the Warsaw Stock Exchange in the years 2005-2019 that regularly paid out dividends. The main research method was the classical technique for order of preference by similarity to ideal solution (i.e., TOPSIS) in which stimulants and destimulants were selected in a way which enables to assess the investment attractiveness from the point of view of a long-term stock market investor interested in dividend. Moreover, the Pearson correlation matrix and descriptive statistics were used. In order to conduct the computation we used the statistical software Statistica 13.5 and Excel.The research revealed that the highest dividends were paid out by these companies in which the first-largest shareholder was the institutional investor. In addition, our calculations based on a synthetic indicator showed that the most attractive investments (in terms of stock market investor interested in so called ‘dividend investing’) were shares of these companies in which the main shareholder was an institutional investor, individual investor and legal person. In all these types of companies, the average value of dividend payout ratio was higher than in the entire research group. The fourth position in terms of investment attractiveness was occupied by the companies in which managers held the most shares (these companies paid out the lowest dividends in the entire research group). The last place in the ranking was taken by the companies in which the State Treasury was the main shareholder (these companies, despite the payment of high dividends, turned out not to be attractive investment due to their financial condition, and in particular, very high debt).

This paper investigates whether national social progress influences dividend payout policy of companies around the world. Using a large database of 12,312 companies from 70 countries, for 7 years (2008-2014), I provide strong evidence that social progress is significant in relation to important corporate decisions on paying dividends. Dividend payout policy is explained by the social progress of the country in which the company is active. Access to higher education, satisfaction of basic human needs, overall wellbeing and opportunities positively influence the dividend payout ratio and the propensity to pay dividends. Moreover, the Social Progress Index may be more significant than GDP per capita in relation to dividend policy. Hence, the new measure of quantifying the population's standard of living, from the social perspective and not from the economic one, is more relevant in the decision-making process on dividend payout.

Activist shareholders play an increasingly relevant role in management decisions, especially in their activities aimed to influence corporate decisions towards enhanced performance and profitability. However, the level of success of such strategies is not yet fully understood, as reported in the existing literature. Most of the literature has focused on performance, although other firms’ policies catch activist shareholders’ attention. A key strategic decision is precisely the dividend policy. In this paper, we assess the likelihood of a dividend payment and the time invariance of the dividend policy while controlling for firm-specific and market-specific effects. Our data cover the nonfinancial US-based firms targeted by activist shareholders in a large time span from 2000 to 2017. Taking both a quantitative econometric approach and a qualitative one (fsQCA), our findings support the claim that activist campaigns are positively associated with the likelihood of firms’ decisions to pay dividends, even if it occurs at the cost of higher volatility on the dividend level and payout ratio. Our findings also suggest that activist shareholders prefer to collect dividends in the years following the campaigns, arguably as a risk management mechanism.

This study investigated to examine the relationship between information asymmetry and government ownership to dividend policy. Information asymmetry is measured using bid-ask spreads, while government ownership is measured using the number of government shares divided by the number of outstanding shares multiplied by 100 %. This study uses purposive sampling with a total sample of 9 sub-companies construction and building listed on the Indonesia Stock Exchange (ISE) in 2016-2019. The data used is quantitative data and data sources were taken from the company's annual financial statements. Descriptive statistics and panel data regression are used as data analysis tools. The results showed that information asymmetry has a positive and significant effect on dividend policy, government ownership does not have a significant negative effect on dividend policy, and the interaction of information asymmetry and government ownership moderates the dividend policy.

The article is devoted to the strategic block of corporate finance – the formation of the mechanism of dividend policy in the company and its role in the processes of accumulation and distribution of property. Since financial markets are characterized by high mobility and volatility, the dividend policy and the financial mechanism of corporations are constantly evolving. The article considers the main dividend practices and theories that allowed us to obtain a high dividend yield. The paper makes the main emphasis on the forms of payments, the main stages of the formation of the dividend policy, industry features affecting the dividend mechanism and the possibilities of optimization and adaptation to the existing market environment. The article offers recommendations for the stage-by-stage formation of the mechanism of dividend policy in the company in the field of retail.

Purpose The purpose of this paper is to observe whether the entrenchment of managers can affect firms’ dividend disbursement decisions and investor sentiment in the Tunisia context. Design/methodology/approach The sample includes all non-financial listed stocks in the Tunisia stock exchange during the years 2004–2017. Moreover, the entrenchment of managers is measured by five proxy explained the managers rooting from all listed firms. The propensity to pay dividends is measured by the dividend yield. Findings The findings yield qualitatively consistent with the previous research. After controlling for the effect of a manager’s behavior and different entrenchment phase, the result shows that entrepreneurial the firm’s decision to pay dividends could be influenced by the managers’ entrenchment. Research limitations/implications The result is limited at the level of the non-financial companies listed in the BVMT, but in future studies, the investigation with other countries can be compared. Practical implications Moreover, investors in Tunisia show their preference for a dividend to self-control and satisfaction and increase their profit, especially in an abnormal economic situation explained by the Tunisian political crisis. Originality/value The originality of this paper is to investigate both the important role of the entrenchment and cycle life of the manager on the decision to distribute dividends and the investor sentiment. Moreover, the author’s problem may be a reference for future investigation talking about the managers’ psychology like opportunism.

The different indicators that can be used by individual investors considering stocks are analyzed in the article. The joint stock companies with state participation are studied. The dividend payments practice of seven companies are reviewed. The need for an integrated approach with a primary focus on relative indicators is clearly demonstrated. It is concluded that news of record amounts of dividend payments should not always be taken as a convincing signal for stock investments. Special attention is paid to nuances that should be taken into account to maximize profit.

Building their paper around long-standing critics of the EU capital maintenance regime and the distribution rules thereof, the authors consider introducing additional instruments for creditor protection into Croatian company law, where special regard is paid to the ‘solvency test’. Given the scope and aim of the EU Codification Directive, the paper seeks to find out whether and to what extent such a test could be introduced into Croatian law. The paper argues that the EU regime allows the introduction of the solvency test into Croatian law on public limited companies as a distribution test complementary to the two-fold ‘balance sheet test’ leaving, however, entirely to the Croatian legislator to decide about the place of the solvency test in private limited companies. Alongside the examination of legal sources and literature, the authors pursue their research by employing the systematic and teleological analysis of distribution rules under the Croatian Companies’ Act. That act has already introduced the ‘circumstances test’ as a yardstick for the assessment of the validity of the decision to withhold dividend payment. After the introduction, the second part of the paper considers the concept of legal capital and provides an overview of potentially more efficient means of creditor protection. The third part analyses the Croatian legal capital regime, aiming at revisiting it in light of the solvency test. This part examines various solvency tests so as to decide which one could align with the Croatian distribution rules. The fourth part summarizes and concludes the paper.

Dividend distribution influences corporate operating decisions, and the prior year’s dividends represent an earnings threshold. The purpose of this study was to clarify perceptions regarding the manipulation of income toward a desired earnings goal (i.e., dividend threshold). In this study, data from 2011 to 2019 were collected from the S&P Capital IQ database. A regression model was adopted to analyze the manipulation of income toward a dividend threshold (i.e., desired earnings goal) among South Africa’s listed industry. Moreover, the behavior of managers of listed South African firms tended to meet or exceed dividend thresholds by manipulating earnings, which is consistent with signal theory, prospect theory and agency theory. Keywords: Dividend thresholds, Earnings management, South Africa, Signal theory, Prospect theory.

Agency Problem is a potential confict interest between shareholders and manag- ers. Managers are agents of shareholders, they will take corporate actions that maximize their own utility, such as right issue, they made a right issue announce- ment because they require much money to make an investment or to expand the firm. These actions will not necessarily be consistent with firm value maximization. The shareholders want the fund to be paid as dividends. Theoretically, right issue announcement will be met with a negative shareholders reaction, which mean the stock price will decrease after the announcement of rightissue. The objective of this research is to verify empirically the existence of agency problem when right issue announcement. This research examines 63 firms that made right issue announce- ment. In the other hand, this research also examines 20 firms from banking sector made right issue announcement in Jakarta Stock Exchange during 1998 to June 2001. The analysis method is using Market Model, that apply to estimate the stock performances are market return, stock return, beta, alpha, abnormal retum and cumulative abnormal retum. Overall, the results of this research indicate that agency problem haven't happened when right issue announcement, because there are no significant differences statistically among cumulative abnomal retum before and after right issue announcement.

Research background: Dividends have been the subject of scientific research for decades. However, many aspects of payout policy are still controversial, and research provides contradictory results. One research area is the impact of the ownership structure on dividend policy. Although many scientific studies on this subject have been conducted, there is still a lack of research on the impact of managerial ownership on adjusting the dividend payout to investor sentiment. It was this research gap that motivated us to investigate the issue. Purpose of the article: The aim of the paper is to evaluate how managerial ownership affects the disposition of companies to adjust their dividend payouts to investor sentiment. Achieving that objective provides stock market investors with additional information and allows for its practical implications as they seek the best investment opportunities. Methods: The main method of investigation is a panel regression model with random effects. This model is used based on the Breusch-Pagan test and the Hausman test, while the information criteria of Akaike, Schwarz, and Hannan-Quinn are also taken into consideration. Additionally, descriptive statistics and the Pearson correlation coefficient are used. The research sample consists of Polish companies from the electromechanical industry sector that are listed on the main market of the Warsaw Stock Exchange (WSE) in the period 2009–2018. Findings & Value added: Our findings reveal that: 1) an increase in dividend premium results in a higher payout in order to cater to investor sentiment; 2) if the manager holds the greatest number of shares, the catering effect weakens. The main contribution of the paper is a new approach to the catering theory of dividends, which includes the impact of managerial ownership.

We examine the role of earnings, book value, and dividends in examining the valuation of firms in select Asian countries. Besides the usual variables of earnings and book value, inclusion of dividends is motivated by prior use of the variable in the literature, as well as an adaptation of the Ohlson 2001 empirical specification of the valuation model. In our specification, absent credible analysts’ forecasts, as is typical in these markets, dividends together with earnings play the role of “other information” in explaining stock prices. In a large sample of Asian firms from seven Asian countries that lack an active analyst community, we document two key results. First, the model with earnings, book value, and dividends outperforms the earnings capitalization, book value, and a model with earnings and book value together, the traditional benchmarks used in the literature. This is in contrast to Ashbaugh and Olsson, 2002 who find that earnings capitalization is the best model for the international firms. Second, the ability of the model to explain stock valuations does not vary materially over time, thus indicating reasonable consistency across different accounting regimes in these countries that may include International Financial Reporting Standards (IFRS) adaptation at different paces. Our finding highlights the information role of earnings and dividends when other channels of information are blocked.

PurposeThe purpose of this paper is to examine the dividend payout behavior of Indian firms and test whether the three prominent dividend policy theories (signaling, life-cycle and catering) explain the dividend policy of Indian firms.Design/methodology/approachThe authors test the three theories using the methodology based on the studies of Nissim and Ziv (2001), DeAngelo et al. (2006) and Baker and Wurgler (2004). For testing the signaling theory, the authors regress the change in earnings on the rate of change in dividends using the pooled and Fama–Macbeth regressions. The life cycle theory is tested by running a logistic regression of the dividend payment decision on two proxies of life-cycle measured by the ratio of earned to total equity. Finally, the catering theory tests the relationship between the decision to pay a dividend and the dividend premium.FindingsThe results based on a sample of Indian firms from 1992 to 2017 show that the dividend policy of Indian firms can be explained using the life-cycle theory. However, there is no evidence in support of the signaling and catering theories.Originality/valueIt provides insights into the dividend policy of Indian firms. Though there have been a few studies examining the dividend payout in India, none of the existing studies tests these theories of dividend payout. The existing research using the Indian data provides indirect evidence about the life-cycle theory. This study is the first one to test the application of these theories for Indian firms.

Objective: The objective of this study is to theoretically review the existing theoretical and empirical literature on dividend policy to understand the status and applicability of the theory in different economies and to discover any potential knowledge gaps for further research. -- Study Design and Methodology: This is a descriptive analysis of existing theoretical literature and its application in different economies. The study used a sample of empirical studies to gather empirical evidence. -- Findings: Dividend policy has a significant role in the firm decision-making process, a uniform dividend policy for all firms may not be feasible because of the differences in firms’ ownership, investor’s preference and firm characteristics, firms maintain a consistent dividend policy to avoid giving wrong signals to investors. The study also confirms inconsistency in the application of existing dividend theory with empirical evidence in different markets. We find that the ownership structure of a firm has greater influence in the firm decision-making process and recommend future studies should explore the extent to which ownership structure influences dividend policy and firm value. -- Significance of the study: This study provides a framework for evaluating dividend policy practices between developed and developing countries, evaluate the relevance and applicability of dividend theory within the context of developing economies and identify the best dividend policy practices. The study will form part of the body of knowledge in the finance literature that will enable scholars to appreciate the critical issues involved in dividend policy decisions and provide a base for identifying knowledge gaps for further research., peer-reviewed

The purpose of this study is to test whether the Indian pharmaceutical companies support efficient market hypotheses (EMH) and examine the efficiency of the Indian stock market in three forms, i.e., the weak, the semi-strong, and the strong form of market efficiency. For testing the weak form of efficiency, researchers collected stock price data of 10 listed pharmaceutical companies for the past six years, from 2012 to 2017 from the NSE website, and conducted a run test. To test the efficiency of semi-strong form, researchers collected data on the announcement of events like buyback, stock split, rights issue, dividend, bonus issue. They conducted an event study on the data. For testing the strong form of efficiency, researchers collected data consisting of NAV of some mutual funds (pharmaceutical funds) and the returns of a benchmarking index to compare. The study concludes that the pharmaceutical companies and Indian stock market is efficient in the weak form of EMH and not efficient in the semi-strong and strong form of EMH. Keywords: Stock market efficiency, Buyback, Stock split, Rights issue, Dividend announcement, Bonus, Mutual funds, Benchmarking index.JEL Classifications: G13, G14, G 15, G18DOI: https://doi.org/10.32479/ijefi.9764

A B ST R A C T Capital market practices in the type of stock instruments undergo a shift in the way of analysis. This is not in line with the theory of stock fundamental analysis which explains that fundamental factors become the main variable in determining stock investment decisions for the long term. Fundamental analysis of stocks takes into account various factors including company performance, macroeconomic analysis and the industrial sector. The fundamental variable of stock analysis is used as a consideration of the investment portfolio of the stock for the long term. Users of these variables are usually the owners of capital with the type of investor. Investor type is the owner of capital with the main purpose of buying shares by expecting stock valuations in the long run and dividends, not short-term capital gains. The need for the development of applied science of technical analysis and fundamental analysis of stock investors who have a form of trading activities on a daily basis generally only conduct transactions on the capital market using speculation from each investor. This of course in terms of education that novice stock investors do must have the same time in obtaining maximum income in the trading stock market This service is carried out on customers of PT Reliance Surakarta. There were 13 training participants, namely customers who became stock investors but did not trade every day for a short period of time. The service was held for 1 day. Expected outputs from the event are expected that after attending the training the participants are expected to be able to carry out fundamental and technical analysis of JCI fluctuations on a daily basis Keywords: Stock index, JCI Fluctuation Prediction, Swinger Type

This article discuss the influence of leverage on the investment, dividend and company value. Many theoretical debates related to the influence between these variables. Besides, some previous studies showed inconsistent results. Therefore, based on theory and several previous research models, this article proposes a concept model of the influence of leverage on the investment, dividends and company value.

Research background: Dividend policy has been a subject of many scientific studies. Although most of them focus on its determinants, there is still a research gap concerning the lack of comprehensive research on the differences between companies implementing different types of dividend policy. Furthermore, no at-tempt has been made to indicate which of them could be considered as more attractive for stock market investor that invests in dividend stocks. Purpose of the article: The aim of this paper is to carry out a comparative analysis of companies with different dividend policy from the point of view of their investment attractiveness. Methods: The empirical research is conducted among the regular dividend payers listed on the main market of the Warsaw Stock Exchange in years 2001–2017. The data for analysis is collected from Notoria Service and Stock Market Yearbooks. The main calculations are carried out using the technique for order of preference by similarity to ideal solution (TOPSIS), descriptive statistics and one-way analysis of variance ANOVA with Fisher’s LSD test. Findings & Value added: The value added of this paper is a holistic approach to comparison of companies conducting different dividend policy. The most significant differences are observed in case of extreme and residual dividend policy. The first policy should be of particular interest to investors investing for dividends, while the second one should be attractive to investors that invest for capital growth. The research is valuable due to the lack of academic studies concerning different dividend policy in the context of attractiveness of investing in dividend shares.

Purpose: This study examines the correlations between the structure, conduct and performance of Real Estate Investment Trusts in Nigeria (N-REITs) with a view to providing information that will enhance and guide real estate investment decisions on N-REITs. Design/Approach: The study population consists of all three REIT companies in Nigeria, namely: Skye Shelter Fund, Union Home REIT and UACN Property Development Company (UPDC) REIT. Secondary data on dividends and share prices of N-REITs; Total Business Revenues (TBR) and Total Individual Expenditure (TIE) on conduct variables were sourced from periodicals of the respective companies covering the period from 2008 to 2016. The data series for the study were analyzed by means of the Kwiatkowski-Phillips-Schimidt-Shin (KPSS) unit root tests, Philip-Perron (PP) unit root tests, Granger Causality tests, and the Ordinary Least Square (OLS) regression. Findings: The study shows a Herfindahl Hischman Index (HHI) that ranged between 41.81% (recorded in 2010) and 100% recorded in 2008. This suggests a high concentration in the N-REITs industry. Similarly, the Granger Causality Test conducted reveals a bi-directional causal relationship between the structure, conduct and performance of N-REITs. Practical Implications: The study provides essential information (on the HHI, return performance and causal relationships) for stakeholders in the real estate sector regarding the influence of structure and conduct on the performance of N-REITs. This information will be valuable for equipping asset managers, insurance companies, pension funds and individual real estate investors in making informed investment decisions. Originality/Value: This study is unique as it is the first to draw a link between the structure, conduct and performance of REITs in an African emerging real estate market; something that has not been considered in previous studies.

Purpose The purpose of this paper is to examine the interaction between competition and corporate payout policy and more specifically to answer the question that whether competition mitigates the principal–principal agency conflicts and influences firms to distribute dividends to shareholders in Chinese corporations. Design/methodology/approach This research models measures of competition with scaled measures of dividends and analyzes a sample of 16,730 firm-year observations from Chinese-listed manufacturing firms for the period spanning 2003 to 2016. Further, this research uses the Tobit model (a censored regression) to empirically test the proposed hypotheses. Findings This research finds that intense competition not only mitigates agency problems and forces firms to disgorge cash but also increases a firm’s likelihood to pay dividends and weakens the negative association between agency conflicts and dividends. Practical implications The results show an important policy implication for the industry. As the principal–principal agency conflict restrains the dividends, the regulatory authorities could encourage a competitive environment and a more diverse ownership structure to induce a higher dividend rate and protect the minority shareholders. In addition, this study also has implications for other emerging markets characterized by concentrated ownership and principal–principal agency problems. Originality/value This study adds to the literature related to the disciplinary role of competition and identifies competition as a significant determinant of corporate payout policy. Furthermore, this research extends earlier research on corporate payout decisions that besides firm-level corporate governance and country-level legal system, industry-level competition also influences corporate payout decisions, significantly.

This article analyzes the key patterns of the dividend policy and the problem of the “dividend puzzle” in the general context of the development of the stock market in Russia. The article consists of two parts.In the first part we summarize main research trends of dividend policy in modern economic theory (the classical Modigliani—Miller theory of dividend irrelevance, agent and signal hypotheses, the smoothing model, the catering theory, etc.). We emphasize the theoretical analysis of motivation of the largest Russian companies for profit allocation and dividend payout, based on a sample of 236 joint stock companies. Since 2012, a steady increase in dividend payments has been revealed in both private and state-owned enterprises (SOEs). The bulk of dividend payments from SOEs accounts for only 12 major companies. Along with an increase in the market value, dividends have become an important factor in the total return on shares. Under current conditions, the probability of paying dividends depends not only on the size of the company and indicators of its’ financial stability, but also on the presence of the state in the capital of companies. However, the relationship between the probability of paying dividends and state participation in the ownership structure is not universal and can be explained by specific factors that go beyond the classical dividend theories.In the second part we will analyze the patterns of stock market performance and dividend policy of the largest Russian companies, motivation for dividend payouts and special aspects of SOEs policy.

Stock markets, which are a kind of catalyst for the level of development and dynamics of national and regional economies, have attracted the attention of researchers and practitioners, especially in emerging markets. The gradual transformation of emerging to developed market in terms of basic parameters cannot, by definition, be standardized and homogeneous from a regional aspect. The subject of this article is the formulation and testing of hypotheses about the influence of various dividend policy options on the value of oil and gas companies in emerging markets. In particular, we compare two estimates: (a) actual value of the company according to market data; and (b) theoretical (intrinsic) value of the company calculated on the basis of forecast data on systematic dividend payments using the simulation method (Monte Carlo method). The identification of statistically significant relationships between these estimates allows us to build a real mechanism for managing the company’s value in the context of the Value-Based Management (VBM) model. The logic and methodology of modeling and assessing the intrinsic value of the company, substantiated by the authors, was tested on actual publicly reported data of the largest listed companies in the oil and gas sector in a number of emerging markets in various regions of the world. The choice of sector was determined by particularities of the development of these companies, in particular the existence and certain continuity of the dividend policy. In developed markets, modeling business value in conjunction with dividend payments has been studied since the mid 1970s. The specifics of emerging markets (including the Russian case) are such that in fact only in recent years it has become possible to conduct research aimed at identifying the characteristics of the dividend policy of companies represented in these markets. Until recently, a relatively small history of dividend payments did not allow the construction of more or less reasonable hypotheses about trends and features. Moreover, results obtained were largely insignificant from the standpoint of statistical methods (an extremely small amount of data). It was not necessary to talk about a certain continuity of the dividend policy in the context of a rather stochastic procedure for accruing dividends at an early stage of public business in emerging markets. The situation has begun to change in recent years. The authors of this article substantiate the assumption that the existence of a successive dividend policy is an indispensable condition for the transition of the emerging stock market to the developed category.

The author of the article outlined the results of the research on the taxonomy and the specificity of the transfer of profits to shareholders of dividend companies which are components of the WIG, DAX, CAC40 and S&P 500 indexes for the period 2013-2019.The purpose of the article is a critical assessment of the systematic distribution of dividends by domestic and international companies, taking into account the rate of dividend growth, the cumulated rate of dividends and the average rate of return on investments in shares of these companies. The studies carried out included 120 companies listed on the Polish, German, French and American markets (30 companies in each country), which in the period 2013-2019 paid dividends and at the end of 2019 had the highest capitalization in a given index. Then the author analysed for each market only those issuers who paid the dividends without interruption during the period considered (continuously for 7 years).

Stock price valuation is a common thing done by a public company that sells its shares on the Stock Exchange or a company that will conduct mergers and acquisitions. This study aims to build a valuation model for automotive companies in Indonesia that trade their shares on the Indonesia Stock Exchange. The design of this study uses proposed sampling data of automotive companies on the Indonesia Stock Exchange. The results of the multivariate price to earnings ratio model showed that return on assets (P = 0.0081

The problem-field dividend payout policy is a very complex issue. Particular within the low-interest phase in Europe, the significance of this issue is growing for all investors, equal to whether private or institutional investors. The aim of this study is to research the European area to provide a contribution to a region, which, unfortunately, has given sparse attention in the past. In order to ensure the relevance for this exploration, the major European stock index Euro Stoxx 600 has been used. The results of the multiple linear regression show the unequal dividend distribution between stock companies from the industrial sector and the service sector. Besides, it has shown that institutional investors play as well a significant role within the dividend policy in European public companies. Furthermore, the net income of a corporation influenced in all previous analysis the dividend reimbursement, which could be confirmed through this paper as well. Regarding the previous studies, this paper provides an additional source for further studies which also occupy with this complicated question. info:eu-repo/semantics/openAccess

The study examines the effect of shareholder wealth maximization on investment decision in food and beverage companies listed in Nigeria. To achieve this, seven listed food and beverage companies were selected. The research adopted an ex post facto research design, while purposeful and stratified sampling techniques were used to select seven out of the fifteen companies in the food and beverage subsector. Data for the study were extracted from the annual reports and accounts of the sampled companies from 2008–2017. The result obtained from the regression analysis reveals that earnings per share and market price per share have no significant positive effect on investment decisions, while dividend per share was found to have no significant negative effect on investment decisions. In effect, the study concludes that the unique combination of the identified proxies for shareholder wealth maximization have jointly a significant positive effect on investment decisions. Arising from this, the study recommends that food and beverage companies should improve more on earnings per share, dividend per share, and market price per share so as to attract more investment from shareholders.

To analyze the determinants of the observed variation in stock prices, Campbell and Shiller (1988) have suggested decomposing unexpected stock returns into unexpected changes in investors’ beliefs about future cash flows (cash flow news) and discount rates (discount rate news). Based on a generalization of this approach to a framework with regime-switching parameters and variances, we analyze the decomposition of the conditional variance of returns on the S&P 500 index over the business cycle. The cash flow news is relatively more important than discount rate news in determining the conditional variance of returns in expansions. The conditional variances of returns and its components increase in recessions. However, the conditional variance of discount rate news increases more than that of cash flow news and, thus, the discount rate news become s relatively more important than cash flow news in determining the conditional variance of returns in reces sions. In contrast to the standard Campbell and Shiller approach with constant parameters and variances, cash flow n ews becomes more important than discount rate news in determining the unconditional variance of returns when we allow parameters and variances to vary over the business cycle. We show that these results are broadly consistent with the implications of a stylized asset pricing model in which the growth rates of dividends and consumption take on different values depending on the underlying state of the economy.

From the perspective of social psychology, takes the large stock dividends policy of Chinese listed companies as an example, based on the sample of Chinese listed companies from 2009 to 2018, this article examines the impact of psychological expectation under the mergers and acquisitions (M&A) pressure on enterprise innovation. The empirical study finds that the high dividend payout mainly increases the liquidity of the stock, which makes the company face a greater risk of hostile merger and acquisition, and thus causes the management to pay attention to the psychological preference of short-term effect, and reduces the level of enterprise R&D and innovation. Moreover, the above conclusion is still true after controlling the endogenetic problem. Further research shows that in private enterprises, enterprises with low ownership concentration and non-high-tech enterprises, large stock dividends has a more obvious inhibiting effect on the level of enterprises’ R&D and innovation. After excluding the possible of agency problem, the conclusion is still robust. This article expands the research on the influencing factors of enterprise innovation from the perspective of psychological expectation. The findings of this study provide references and inspirations for facilitating enterprise innovations by reducing short-sighted behaviors of management under increased stock liquidity.

Αυτή η διατριβή αποτελείται από τρία αυτόνομα δοκίμια σχετικά με την μερισματική πολιτική. Στο πρώτο δοκίμιο εξετάζεται η σημαντική σχέση του λόγου μερίσματος-τιμής ως προς την αύξηση των μελλοντικών μερισμάτων, ακόμη και σε μεγάλες κεφαλαιαγορές. Προκειμένου αυτή η σχέση να εξετασθεί χρησιμοποιούνται μηνιαία μερίσματα και μικτή τεχνική δειγματοληψίας δεδομένων που επιτρέπει την αντιμετώπιση εποχικότητας εντός του έτους. Η επίδραση της μεταβλητότητας των τιμών στο λόγο μερίσματος-τιμής περιορίζεται εφαρμόζοντας μια απλή τεχνική εξομάλυνσης, και προσδιορίζεται ο όρος του εξομαλυσμένου λόγου μερίσματος-τιμής που προσφέρει την προβλεπτική ικανότητα. Η εμπειρική ανάλυση χρησιμοποιώντας αγοραία δεδομένα από Αμερική, Αγγλία, Καναδά και Ιαπωνία επιβεβαιώνει την προβλεψιμότητα της αύξηση των μελλοντικών μερισμάτων, γεγονός που υποδηλώνει ότι η χρονική συνάθροιση των μερισμάτων εξαλείφει σημαντικές πληροφορίες. Επιπλέον, αποδεικνύεται ότι τα αποτελέσματα αυτά εξακολουθούν να ισχύουν ακόμη και αν η ρευστότητα της αγοράς και η μεταβλητότητα καταβολής των μερισμάτων ληφθεί υπόψη.Το δεύτερο δοκίμιο της διατριβής ερευνά τους παράγοντες που καθορίζουν τη συμπεριφορά της τιμής την ημέρα αποκοπής του μερίσματος στο Χρηματιστήριο Αξιών Αθηνών (ΧΑΑ), ένα ιδιαίτερο θεσμικό πλαίσιο, και εξετάζει πώς μια σημαντική ρυθμιστική αλλαγή στη μέθοδο προσαρμογής της τιμής επηρεάζει τη μεταβολή των τιμών την ημέρα αποκοπής. Τα εμπειρικά αποτελέσματα δείχνουν ότι η δυνατότητα που προσφέρει η κεφαλαιαγορά στο να μεταβάλλονται ελεύθερα οι τιμές την ημέρα αποκοπής του μερίσματος, μετά το 2001, βελτιώνει την αποδοτικότητα της αγοράς, υπό την έννοια ότι ο λόγος της τιμής ως προς το μέρισμα τείνει προς ένα και οι έκτακτες αποδόσεις τείνουν στο μηδέν. Παρουσιάζεται επίσης ότι σε ένα περιβάλλον όπου χαρακτηρίζεται από μη φορολόγηση των μερισμάτων και των κεφαλαιακών κερδών καθώς και από την απουσία ορισμένων εμποδίων που αφορούν τη μικρό-δομή της αγοράς και έχουν συζητηθεί στη βιβλιογραφία, όπως: το περιθώριο μεταξύ της τιμή ζήτησης και προσφοράς, ο μηχανισμός προσαρμογής της ελάχιστης τιμής, οι ειδικοί διαπραγματευτές, το εύρος μεταβολής τιμής και η διακριτικότητα της τιμής, η έλλειψη ρευστότητας είναι η καλύτερη υποψήφια αιτία για να εξηγήσει το μέγεθος της μεταβολής των τιμών την ημέρα. αποκοπής του μερίσματος.Το τελευταίο δοκίμιο αυτής της μελέτης ερευνά εάν μια ανακοίνωση αύξησης μερίσματος τόσο μη αναμενόμενη όσο και ιστορικά μέσο-σταθμικά μη αναμενόμενη μπορεί να έχει επιπτώσεις στις αποδόσεις των μετοχών σε ένα διαφορετικό θεσμικό πλαίσιο, όπως είναι το Χρηματιστηρίου Αξιών Αθηνών, για την περίοδο 2000 - 2004. Τα εμπειρικά αποτελέσματα δείχνουν ότι όταν οι ανακοινώσεις αύξησης μερίσματος είναι "αναμενόμενες" τότε οι τιμές των μετοχών έχουν στατιστικά ασήμαντες αποδόσεις και δεν υπάρχει πληροφόρηση που να μεταφέρεται στην αγορά, ενώ όταν οι ανακοινώσεις αύξησης μερίσματος είναι μη αναμενόμενες ή ιστορικά μέσο-σταθμικά μη αναμενόμενες υπάρχει αρνητική επίδραση στις τιμές των μετοχών, ένα σημάδι πως θεωρούνται ως «κακές» ειδήσεις. Έτσι, οι ανακοινώσεις αύξησης μερίσματος που δεν ακολουθούνται από άλλες πληροφορίες που να δικαιολογούν την απόφαση αυτή της επιχείρησης, κάνει τους επενδυτές επιφυλακτικούς ως προς τα κίνητρα της επιχείρησης για αυτές τις μη αιτιολογημένες αυξημένες πληρωμές, ερμηνεύοντας τις ανακοινώσεις αυτές ως πληροφορία ότι οι επιχειρήσεις έχουν ανεπαρκής επενδυτικές ευκαιρίες, ή ότι οι ιδιοκτήτες των επιχειρήσεων θέλουν να προβούν σε ανάληψη μετρητών. Τα ευρήματα αυτά, ακόμη και αν μια ανακοίνωση αύξηση μερίσματος μεταφράζεται ως «κακό» σημάδι για τους επενδυτές, σε αντίθεση με τη βιβλιογραφία, υποστηρίζουν την άποψη ότι τα μερίσματα μεταφέρουν μοναδικές και πολύτιμες πληροφορίες για τους επενδυτές.

This study empirically examines the relationship between corporate sustainable management (CSM) and dividend policy. Among the various motivations related to dividends, this study examines the relationship between CSM and dividend policy based on the agency and signaling theory. After examining the relationship between CSM and dividend policy, we investigate whether belonging to a large business group (chaebol group) has a significant effect on the relationship between CSM and dividend policy. The analysis period is from 2011 to 2018, and the ESG ratings of the Korea Corporate Governance Service are used as proxies for CSM. The empirical results show that CSM and dividends have a significant relationship in the positive direction. This means that firms with excellent CSM activities have higher dividend levels than those that do not. Furthermore, the association between CSM and dividends is more negative for firms belonging to a chaebol group. This indicates that the positive relationship between CSM and dividends in a firm that belongs to a chaebol group is weakened. This means that the relationship between CSM and dividends in the group belonging to the chaebol group is weakened. It belongs to the group of conglomerates, meaning that the relationship between the amount of dividends and CSM weakened. Our study focuses on CSM as a determinant of dividends, and examines the effects of belonging to a chaebol group in the relationship between CSM and dividends. Given that resolving the interest incompatibility between investors and managers is the focus of corporate governance, dividend policies can be used as a method for resolving the interest incompatibility between investors and managers.

Background: The dividend payout policy remains one of the key functional areas of corporate finance because it is through receipt of dividends that shareholders can share in the profits of their investments. Amongst the dividend payout theories that have been developed over the decades, the life-cycle hypothesis has received little attention in research. Aim: The aim of this study was to test the dividend life-cycle hypothesis in the South African contex. Motivation for the study: Justification for this study in the context of South Africa is that there is minimal research in this regard in emerging economies. South Africa presents a good platform for this research because it is amongst the highly regarded emerging markets and this has been confirmed by its representation in Brazil, Russia, India, China and South Africa (BRICS) countries. Hence, results in this regard would shed some light in the form of a relative representation of overall emerging markets trend. Research approach/design and method: A panel data of 119 Johannesburg Stock Exchange (JSE) listed sample companies were used to test the hypothesis during the period 2006–2015. A combination of basic and dynamic panel data estimators was used to analyse the data. Main findings: The study finds that the dividend life-cycle hypothesis is prevalent amongst South African companies. Specifically, it was observed that the considered companies pursuing growth projects paid less dividends. Furthermore, the growth companies have shown to be more aggressive in their pursuit for growth and hence are able to create more value for shareholders than value for companies. Managerial implications: Financial managers will be afforded with enhanced decision alternatives in respect of their fiduciary duties towards the shareholders in respect of maximising value. Conclusion: These results provide a mirror image of those of the developed markets and a good context for future research in the same area in an emerging economy setting.

There is no exact closed form formula for pricing of European options with discrete cash dividends under the model where the underlying asset price follows a piecewise lognormal process with jumps at dividend ex-dates. This paper presents alternative expansions based on the technique of Etore and Gobet, leading to more robust first, second and third order expansions accross the range of strikes and the range of dividend dates.

PurposeThe purpose of this paper is to empirically analyse the propensity to pay dividends and investigate whether the catering theory is valid in an emerging market.Design/methodology/approachThe sample of this study comprises listed firms on the stock market of Turkey, Borsa Istanbul, with 2,438 observations during the period 1999–2015. In line with previous studies in the literature, appropriate control variables are used that may have an impact on Turkish firms' dividend policy. Control variables are examined in the likelihood of paying dividends by using Fama–Macbeth (1973) style cross-sectional logistic regressions. In addition, the linkage between the dividend premium and the propensity to pay is revealed to test the validity of the catering theory.FindingsThe findings of the study confirm the tenets of the catering theory for Turkey. When a positive dividend premium exists, that is when investors demand dividend, firms cater them and distribute dividend; on the contrary, when there is no demand, firms prefer not to pay. The effect of catering incentives on the dividend policy provides useful information for managers because the catering theory claims that investors' demand for dividends has an impact on the valuation of firms.Originality/valueIn the aftermath of the 2001 financial crisis, Turkey implemented far-reaching reforms and policy initiatives to improve the efficiency of capital markets and to overcome the obstacles sourcing from their culture and civil law origin. With the adoption of these major economic and structural reforms, as a civil law origin country, Turkey has managed to ameliorate the protection of investors as in common law countries. Ferris et al. (2009) state that the catering theory is applicable to firms in common law countries but not in civil law countries. In addition, prior research is not so extensive regarding the impact of catering incentives on the dividend policy of firms in emerging markets. The results of the analyses suggest that the catering theory is valid for Turkey as a civil law origin emerging country, and to the best of authors' knowledge, this study is the first to test the catering theory in the Turkish capital markets.