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The effects of cash dividend policies on the capital accumulation of non-bank firms operating in The United States (S&P 500), The United Kingdom (FTSE 100), Japan (Nikkei 225), and France (CAC 40) have been investigated in this study. The dataset used in the study consists of annual observations between 2010 and 2015. Also, the data were retrieved from the Thomson Reuters database. The system in GMM is employed in the econometric estimations in this paper. “Total effect” of cash dividend policies on capital accumulation has been bisected as “direct” and “indirect” effects. In this study, we call the effect of the cash dividend policies on investments via financial and liquidity constraints as “direct effect” and the effect of the policies on the accumulation via market value and business reputation as “indirect effect”. Obtained results show that the indirect effect is positive, whereas the direct effect is negative. However , the magnitude of the direct effect is larger than that of the indirect. Therefore , the total effect of cash dividend policies on the accumulation of capital and investments is negative. The fact that movements in stock prices of firms have an effect on the capital accumulation has shown that the financial markets could affect real economic variables. Also, the results that the cash dividend policies positively affect the market value of firms are mounting evidence to the validity of Signalling and Information Content Approach and Bird in Hand Theory. .

Using a sample of listed companies from the Chinese stock market between 2003 and 2017, this article investigates the effect of corporate diversification on cash dividend payments and the exacerbat...

This paper examined impact of agency costs on financial performance of listed consumer goods companies in Nigeria. The research utilized documentary data collected from annual reports of consumer goods companies in Nigeria for the period of 2007-2016. A panel data regression technique was employed. The study reveals inverse relationship between agency costs and financial performance, indicating that agency costs will lead to a decline in financial performance, if not properly managed. Based on this result the study recommends that managements of listed consumer goods companies in Nigeria should lay down effective rules and regulations that will ensure avoidance of keeping free cash flow at managers’ discretion so that agency costs could be minimized and effectively managed. This could be achieved by complying with the suggestions by free cash flow hypothesis paying it out in the form of cash dividend or committing the firms in to more financial obligations which requires periodic interest payments. There should be critical reviewed before such action are taken by companies in consumer goods industries.

This paper aims to discover evidence on the possible impact of CEO overconfidence on payout policy, and the role of corporate boards in offsetting the possible negative effects of this overconfidence. Our investigation demonstrates the effect of overconfidence on the choice of payout method, specifically regarding the repurchases-dividends mix. We also evaluate the ability of corporate governance mechanisms to reduce or even eliminate the negative effects of CEO behavior on payout decisions. This study is conducted using a sample of 671 non-financial companies from the US for the period of 2007–2016. We apply probit regressions to study different aspects of payout decisions, and use a panel GMM estimator to check for possible endogenous effects. Using a corporate governance quality index, we test the ability of boards of directors to reduce negative effects of CEO’s overconfidence on the payout decisions. Our findings confirm the hypothesis that overconfident CEOs tend to increase the levels of payout in the form of repurchases, while the levels of cash dividends are unaffected by this type of CEO behavior. Moreover, an overconfident CEO is more likely to initiate repurchases if this has not been done already. The results further illustrate that overconfident CEOs not only pursue higher levels of repurchases, but also switch more often from cash dividends to repurchases. However, it is also shown, in contract to previous research in the field, that efficient boards of directors have very limited power in eliminating the negative effects of CEO overconfidence. This paper contributes to the existing literature by analyzing the specific area of CEO overconfidence using data from the United States, and follows specific lines of inquiry which have not been deeply studied. Further possibilities to explore the implications of this research exists particularly in the consideration of its apparent contradiction of previous research. There is yet scope to determine applicable tools of reducing the negative effects of specific CEO behaviors. It is possible to identify and investigate other relevant behavioral characteristics that may influence payout decisions. Further, these characteristics may be evaluated to see if the operation of these interrelations reproduce alternative results in terms of the effect of corporate governance, both in the US and in other markets.

This study aims to determine the effect of accounting profit and cash profit on cash dividends in manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the year 2016-2018. Using the purposive sampling method. The study was analyzed using multiple linear regression with SPSS software version 21. Based on the results of the study it can be concluded that accounting profit and cash profit simultaneously have a significant effect on cash dividends and partially accounting profits have a significant effect on cash dividends on manufacturing companies listed on the Indonesian stock exchange, but there is one variable, namely cash income which has no significant effect on cash dividends on manufacturing companies listed on the Indonesian stock exchange.

This study examines the impact of import competition on a firm's preference for financial flexibility by examining corporate payout policy. We confirm existing results that firms with greater exposure to import competition are less likely to pay regular dividends and pay less. We extend these results by showing that firms subject to greater import competition are less likely to initiate or increase regular cash dividends, and are more likely to decrease or omit them. Further, we are the first to show that for firms that have a positive cash payout there is a clear preference for the flexible distribution channel when faced with more intense import competition.

We provide new evidence on price disparity between Chinese A- and H-shares for cross-listed companies in the period 2006–2019. Our panel-data results show that the A-share price premium is negatively related to cash dividends and expected relative currency values between mainland China and Hong Kong. International investors in H-shares prefer companies that pay dividends regularly, and they buy when the Chinese currency is expected to appreciate. A discounted dividend theoretical model explains these results.

Dividend distribution is the core of financial management of listed companies and an important way for investors to obtain returns. This paper examines the influence of macro monetary policy and micro financing constraints on cash dividend payment by taking a-share profit listed companies in Shanghai from 2008 to 2012 as samples. The findings are as follows :(1) tight monetary policy inhibits the payment of cash dividends; (2) Non-state and non-eastern companies pay fewer cash dividends under tighter monetary policy.

Purpose The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference. Design/methodology/approach The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis. Findings US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly. Research limitations/implications The study only uses US data. It does not cover other countries. Practical implications The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc. Social implications The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation. Originality/value The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.

This study examines the presence of catering for various dividend policies in Taiwanese firms, including cash, stock and dual dividends. Different from prior results in the literature, we find that the catering phenomenon exists for these three types of dividend decisions. When one type of dividend premium (i.e., cash dividend) is high, managers are more likely to issue the same type of dividend and less likely to issue the other type of dividend (i.e., stock dividend). Catering persists even after controlling for the effects of a firm’s characteristics, risk and external policy, as well as macroeconomic situations. JEL Classification: G35, C23

Purpose This study aims to examine dividend policy from the perspective of institutional investors in India. It focuses on the level of importance these investors attach to the dividend policy of their investee firms, the level of influence they exercise in shaping such firms’ dividend policies and their reactions to changes in dividends. This study also reports how institutional investors view various explanations for paying dividends. Design/methodology/approach A mail survey provides a profile of respondents and their firms, as well as responses to 29 closed-ended questions involving various explanations for paying dividends and 22 closed-ended questions on various dividend issues. Findings The evidence shows that Indian institutional investors attach substantial importance to dividend policy and prefer high dividend payments. Their reactions to dividend changes are asymmetric. Taxes are a major driver for why they seek dividends, whereas liquidity needs to play little role in shaping their preferences. The two most commonly used methods of active monitoring are selling shares and communicating concerns to investee companies. Research limitations/implications The number of responses limits the ability to test for statistically significant differences between the various competing hypotheses. Practical implications The findings support multiple explanations for paying cash dividends and provide new evidence supporting the positive relation between inflation and dividend payments. Originality/value This study provides the first survey evidence on the views of institutional investors on dividend policy in India.

This study explores how enterprise groups adjust the allocation of financial resources among subsidiaries after the industrial policy is amended. Results show that compared to subsidiaries experiencing minimal impact due to changes in industrial policy, a higher inflow of financial resources from enterprise groups is witnessed by subsidiaries experiencing a positive impact than those experiencing a negative impact. From the specific channels of allocation of financial resources, subsidiaries experiencing a positive effect obtain more equity investment from the parent company and pay fewer cash dividends. Contrarily, subsidiaries experiencing a negative impact obtain less equity investment and have minimum cash adequacy ratio.

Chinese firms experienced a substantial reduction in nontradable shares following the Split-Share Structure Reform that began in 2005. The decrease in nontradable shares, or increase in share tradability, is associated with a decline in the firms’ cash dividend payouts. The positive association is attenuated in firms with fewer financial constraints, only weakly affected by firm governance, and not affected by investment opportunities or controlling shareholder type. The results highlight the fact that firms disgorge cash to compensate shareholders for trading restrictions and conclude that dividends persist when firms have easier access to external financing. These findings are robust to alternative definitions of nontradable shares, after controlling for firm fixed effects and omitted changing firm characteristics.

According to a recent survey by McKinsey and Company, the Indian manufacturing sector is expected to touch US$ 1 trillion by 2025.This study analyses the impact of the announcement of cash dividends on the stock price returns of the manufacturing companies listed on Bombay Stock Exchange using event study methodology. Further, it explores whether the US financial crisis recession impacted average abnormal returns (AARs) in the period of study. The empirical results show that cash dividend announcements have positive AARs. Overall, the results lend support to the signalling and informational content hypotheses of dividends. The paired samples t-test indicates a significant difference in the mean values of AARs in the pre-and post-recession phases, highlighting the impact of recession.

Nowadays, since the most of individual investors provide money to company for real cash inflows, paying cash dividend, as the main way to pay money back to the investors, is definitely paid more attention to. But for the company, keeping money in itself can help to grab development opportunities in time. This essay reveals the possible outcomes in dividend policy because of the ultimate controller’s changing. Given to the results of existing research works and the data from Chinese listed companies, after exemplifying some typical cases, the conclusion can be illustrated clearly: The ultimate controller’s changing effect cash dividend payment by generating disputes of share transfer, complicating the pyramid-shaped shareholding structure, and damaging corporate governance and operating ability. Further more, auditing and cash dividend payment are substitutes for each other as corporate economic supervision tools. Meanwhile, auditing can reduce the negative influence of ultimate controller’s changing so that investors can get more cash dividend. This paper offers a new perspective for studies about the factors of cash dividend tendency and briefly discusses how the heated topic of auditing exerts influence on the relationship.

Payout policy is one of the most important policies set by firms and represents a major use of capital by publicly traded corporations. Firms should consider future economic activity and future firm performance when determining payout policy choices, given they are cash outflow commitments from the firm. We empirically examine whether firms use economic outlook when determining payout policy using publicly available data from the Chicago Federal Reserve Bank and Compustat. We find that economic outlook is positively related to firm payout policy. Specifically, we find that firms are more likely to pay out cash dividends and repurchase shares when economic outlook is positive. Furthermore, when examining only firms already paying dividends and/or repurchasing shares, firms pay greater amounts of cash dividends and repurchase more shares when economic outlook is positive. We are the first, to our knowledge, to examine whether firms use economic outlook to determine their payout policy. Our paper motivates future research in corporate finance to examine how firms use economic outlook when making capital planning decisions.

In this paper, principal component analysis is used to weigh the level of corporate governance and an intermediary effect model is built based on the perspective of corporate governance. It is found that the cash dividend payment propensity and payment level of listed companies with venture capital shareholders are significantly higher than that of listed companies without venture capital holdings, and the higher the shareholding ratio of venture capital to listed companies, the higher the cash dividend payment level. The effect of venture investment on cash dividend is realized by improving corporate governance level. The higher the proportion of venture investment in listed companies, the more obvious the improvement of corporate governance is, thereby reducing the agency cost of the company, which is manifested in the improvement of cash dividend payment level of listed companies.

In recent years, there have been more and more companies distributing cash dividends in the A-share market. Most of the research on the level of cash dividend payment has studied the entire A-share market with a sample of CSI 300. This paper takes the relevant data of CSI 500 listed company from 2015 to 2017 as the research sample, and uses the event research method to study the impact of the cash dividend distribution level of China's small and medium-sized listed companies on the stock price from a short-term perspective. The research shows that the cash dividend policy has a signal transmission effect; however, it is not the higher the dividend rate, the better the impact on stock price. The dividend rate of more than 3% has the best and positive impact on stock price, the dividend rate of less than 1% is in the middle, and the dividend rate of 1% - 3% is the worst performance, which has a negative impact on stock price.

This research aims to analyze factors of stock liquidity, size, profitability, growth, leverage, and cash which affect cash dividend. Independent variable such as stock liquidity, size, profitability, growth, leverage, and cash which affect cash dividend. This research use quantitative approach by using multiple linier regression. The sample of this research is the non-financial company that listed in IDX (Indonesia Stock Exchange) for period of 2012 to 2016. Final samples which are used in this research were 78 business entities with 390 observations. Based on this research, the result show that stock liquidity, and growth give positive effect to cash dividend. size, profitability, leverage, and cash give negative effect to cash dividend. Cash Dividend, Stock Liquidity, and Informational Effect

This paper examines the relation between share pledging and cash holdings of Chinese A-share listed-firms. We find that during the years 2005 through 2015, the level of share pledging is negatively associated with cash holdings. We establish causality through a variety of econometric techniques, including a difference-in-differences approach based on a regulatory change that permits security companies to lend money to borrowers pledging their shares as collaterals. In addition, we find that the main effect is more prominent for financial constrained firms, and share pledging is associated with lower cash/investment-cash flow sensitivities and more cash dividend payouts. Overall, our findings indicate that share pledging can alleviate financial constraints of listed firms and reduce their tendencies of holding cash for precautionary motives.

The main aim of this study is to investigate the impact of cash dividends and firm factors on earnings management. The Ordinary Least Square (OLS) regression analysis is utilized to examine the impact of both cash dividends and firm factors, as independent variables, on earning management, the dependent variable, measured by Jones Model with a cross sectional approach using 27 firms listed in the Bahrain Bourse (BHB) for a period of 10 years starting from 2004 to 2013. Results of the study indicate that cash dividends have no clear impact on earnings management. However, a number of firm factors namely firm ownership structure; firm size; firm financial leverage; firm performance and quality of audit firm have statistically significant impact on earnings management.

Firms can use dividends and/or share repurchases to distribute cash to shareholders. Jagannathan, Stephens, and Weisbach (2000) argue that managers tend to use dividends to pay out permanent cash flows and repurchases to pay out temporary cash flows. This paper examines Korean firms’ decisions on their choices between paying out cash flows in the form of dividends or share repurchases. We focus on the permanence of cash flows. To complete this analysis, we decompose cash flows into a transitory component and a permanent one of each firm, employing the approach of Beveridge and Nelson (1981). We find that higher permanent cash flows increase the probability of a dividend increase, while higher temporary cash flows increase the probability of repurchases. And Korean firms tend to choose both dividend change and repurchases when temporary cash flows increase, rather than to choose only repurchases without dividend change. These empirical results show that Korean firms take into consideration of permanence of cash flows in the choice of their payout methods.

This study aims to examine the relationship between accounting earning and cash earning with cash dividend in the pharmaceutical sub-sector companies listed on the Indonesian Stock Exchange during the periode of 2013 to 2017. This study uses secondary data, namely financial report sata from manufacturing companies that are accessed from the official websitre of the Indonesia Stock Exchange. The selection of samples in this study used a purposive sampling technique, namely the technique of collecting samples with certain considerations or sample selection techniques with certain criteria aimed at getting a representative sample according to the specified criteria. The data analysis model used is multiple regression analysis. In addition to using data analysis in this study is an analysismethod with EViews statistical tools version 9. Based on the result of the study show that partially accounting earnings affect cash dividends while cash earnings do not affect cash dividends but simultaneously accounting earnings and cash earnings have a significant effect on cash dividends.

We derive a consistent valuation approach integrating the interdependent effects of cash dividends, share repurchases, and active debt management while considering personal taxes. Additionally, we identify effects of share repurchases on the cost of equity by deriving appropriate adjustment formulae. Furthermore, we run simulations to investigate the valuation differences caused by distribution of excess cash via cash dividends or share repurchases. The results show that share repurchases have a significant positive effect on equity market value.

Dividend policy is very important to the development opportunities and scale of listed companies. Cash dividend payment level is an important form of investors’ return on investment. The research on the degree of the influencing factors of dividend policy is significant to optimize the management of listed companies and safeguard investors’ investment rights and interests. From the angle of ownership structure, the data of 2169 listed companies in the A stock market of China for 2014–2016 years are taken as samples, and the multiple linear regression model is used to make an empirical analysis. First, there is a significant difference between the proportion of the first large shareholders, the proportion of non circulation shares, the equity balance and the level of cash dividend payment. Linear correlation; second, the proportion of the first largest shareholder is positively correlated with the level of cash dividend payment, but the effect is relatively weak; third, the proportion of non circulation shares and the balance of equity have positive impact on cash dividend payment level. Therefore, listed companies should optimize the ownership structure to raise the level of cash dividend payment and stabilize dividend policy.

The study examines how share pledging behavior of controlling shareholder affects the corporate payout policy using the unique setting of Chinese market from 2008 to 2015. According to the study result, cash dividend payments for firms with shares pledged by controlling shareholders are significantly decreased relative to those without shares pledged, and the effect is stronger for non-state-owned enterprises (non-SOEs), firms with more related party transactions, and pledged shares with more magnitude, frequencies and maturity. Overall, these findings suggest that induced by the share pledging activity, controlling shareholders can obtain private benefits without considering benefits of outside shareholders.

Both basic Black–Scholes and plain vanilla binomial models price options on non-dividend-paying stocks. But most stocks pay discrete dividends, and pricing models—especially for American options—must account for that fact, which is not that easy to do without upsetting the price dynamics of the original model. In principle, the value of a stock is the expected present value of its cash payouts out to the infinite future. In this article, the authors develop an approach that greatly simplifies the problem. The future stream of dividends is separated into two parts: those that occur in the immediate future and can be predicted out to some maximum forecasting horizon and the present value of all dividends to be received after that date. The latter is assumed to follow a specified stochastic process. This structure allows available information about near-term dividends to be fully incorporated while maintaining flexibility to use a wide range of processes for the total value due to long-term dividend flow.

Th is research aims to analyze the effect of cash devidend payment announcement on stock return. Compas s 100 Index is a collection of 100 comp a nies that have good financial performance as well as changes in the level and frequency of transactions is high prices. The result showed that there was a significant effect between cash devidend payment announcement and stock return changes. Some conditions showed an abnormal return, where in period t-2, t0, t1 and t3 were greater than t table s . It indicates that the payment announcement of cash d e viden d information increasing market trust and investor attractive. Keywords : Cash Dividend Payment Announcement, Stock Return changes, Compass 100 Index

This study investigates the effect of family firm on corporate performance and financial policy (capital structure, cash holding, and cash dividends). Using a sample of Brazilian firms, the study uses a treatment effect model to address self-selection and endogeneity problems. The results show that family firm has a negative net effect on performance. Family control has an effect on financial policies that indicate a aversive behavior to preserve control. The results indicate less problem of free cash flow and more risk-taking behavior in family-manage companies, suggesting that such aversion behavior is reduced when the family controls and manages the firm. This is the first study that takes into account the effect of family firm behavior through multiple financial policies

This research was conducted to examine the effect of Debt Policy (DEBT) and Return On Assetss (ROA) variables on Dividend Payout Ratio (DPR) in Consumer Goods.The sampling technique used was purposive sampling method with the criteria (1). listed on the Indonesia Stock Exchange during the 2015-2017 research period; (2). Distributing cash dividends for three consecutive years during the 2015-2017 research period; (3). Have complete financial report data on Debt Policy (DAR) and Return On Assetss (ROA) during the study period, namely in the years 2015-2017. A sample of 14 companies from 40 companies was obtained. The analysis technique used is a multiple linear regression model with hypothesis testing that is F test to determine the effect simultaneously and t test to determine the effect partially with a significance level of 5%.

This research aims: (1) to find impact of profitability, operating cash flows, free cash flows simultaneously to cash devidend at Manufacture Companies of Raw and Chemical Industry in Indonesian Stock Exchange, and (2) to find impact of profitability, operating cash flows, free cash flows partially to cash devidend at Manufacture Companies of Raw and Chemical Industry in Indonesian Stock Exchange. Design used in this research is associative. Analysis method used qualitative and quantitative method. Variables used are four variables, those are independent variables which Profitability (X1), Operating Cash Flows (X2), and Free Cash Flows (X3), and also dependent variables is Cash Dividend (Y). Population in this research as much 66 companies. Sample used as much 58 companies. The analytical tool used is multiple linear regression. According to the research result, find: (1) Profitability, operating cash flows, and free cash flows simultaneously have positive and significant effects to cash devidend at Manufacture Companies of Raw and Chemical Industry in Indonesian Stock Exchange and (2) Profitability, operating cash flows, and free cash flows partially have positive and significant effects to cash devidend at Manufacture Companies of Raw and Chemical Industry in Indonesian Stock Exchange.

Cash transfers are increasingly prominent across Africa, as many countries continue to grapple with high levels of extreme poverty and vulnerabilities amongst their populations and as a “quiet revo...

We investigated the relationship between changes in cash dividend payments, non-public tradable shares, and the percentage ownership of the controlling shareholder in Chinese firms before and after the split-share structure reform. We found a significant reduction in cash dividends before and after the reform. Importantly, the reduction in cash dividends is significantly related to the reduction in the largest shareholder's ownership; however, it is not associated with the decline in non-publicly tradable shares. These results suggest that Chinese controlling shareholders' preference for cash dividends is attributable to the inherent illiquidity of their shares rather than non-tradability of shares.

A limitation of prior research on imputation credit value is researchers’ selective interpretation of the regression coefficient used to estimate credit value. This ignores the in-sample evidence on the value of cash dividends and the value of a fully-franked dividend. This is a problem because a sample of security prices, unfranked dividends and franked dividends necessarily leads to the simultaneous estimation of the value of a cash dividend and an imputation credit. We measure the value of imputation credits under three tax regimes, accounting for the joint estimation of the value of cash and credits. The practical implication is that in the cash rebate regime, the market value of imputation credits lies within the range of -0.12 to 0.17. A dollar of cash is valued by the market at somewhere between 88 cents and 98 cents. At the lower end of the cash value (0.88), credits are worth between 0.04 and 0.17; and at the higher end of cash value (0.98), credits are worth between -0.12. and 0.00. The value of imputation credits has, in our view, moved over time in a direction consistent with changing tax treatment. But it is plausible that the value of imputation credits has remained within the range of -0.04 to 0.06 across all three tax regimes.

We use a survey approach to investigate the factors leading to the decision not to pay cash dividends in Canada. Our results show that Canadian managers perceive growth opportunities, low profitability and cash constraints as the major reasons underlying a firm's decision not to pay dividends. Questionnaire results also show that, for non-dividend-paying firms, taxation is at best a second-order determinant of dividend policy and that stock repurchases are not substitutes for dividends. Finally, our findings are inconclusive regarding managers’ views on the relationship between dividend policy and stock prices and the signaling role of dividend policy.

PurposeThe purpose of this paper is to provide a synthesis of the literature on the changing perspectives of corporate distribution policy.Design/methodology/approachThis paper synthesizes and interprets the theoretical, empirical and survey‐based research on corporate payout policy.FindingsDividends once constituted a prominent part of an investor's total return, but this role has declined over time. Although many companies still pay cash dividends, share repurchases have risen dramatically and are now a significant component of payout.Research limitations/implicationsNew theories and perspectives on corporate distribution are likely to be introduced; while this paper represents an up‐to‐date view on the topic, it is not possible to anticipate new research developments that may affect some of the perspectives expressed herein.Practical implicationsNo single explanation fully accounts for the changes in distribution policy, most notably, the declining incidence of dividend‐paying firms and the increasing level of repurchase activity. Factors that explain the popularity of share repurchases in the USA include the improved regulatory environment, economic conditions, and the flexibility of repurchases relative to dividends. Developing a comprehensive model that explains the choice between dividends and share repurchase remains a challenge facing researchers.Originality/valueThe paper adds to the body of knowledge by providing an integrated perspective on dividends and share repurchase, summarizing decades of theoretical, empirical, and survey‐based research.

The objective of the msearch is to examine the relationship between ac-counting income and cash income with cash dividend of consumergood industrylisted in Jakarta Stock Exchange . This adopted correlational method, which determined whether there was relation orcorrelation between accounting income and cash The variables understudy were accounting income, cash income and cash dividend. The sou 4 ce of this research data was secondary data, in the form of annual financial statement published by Pusat Referensi Pasar Modal Bursa Efek Jakarta . The analysis used were Spearman's Rank correlation coefficient. The result of the analysis and discussion revealed that there was positive and significant relationship between accounting income with cash dividend and cash income with cash dividend , where the accounting income has greater influence on cash &Mend compared with cash income. Keywords :Accounting income, cash income, cash dividends.

This article empirically investigates the information content and signalling power of decreases and omissions of cash dividend payments in an imputation tax environment. Consistent with prior literature We find significantly negative long term abnormal returns subsequent to dividend reductions, with some support for less negative long term abnormal returns arising in the case of unfranked dividend reductions Overall, our study shows conclusively that dividend reductions in Australia constitute a strong signal regarding the future prospects of the firm and, as such, our results are at variance with the results obtained in the U.S. The tax system in Australia differs from that in the U.S. and we do find some evidence of differential tax effects across the franking status of dividends.

The objective of this study is to explore factors influencing the quality of corporate reporting of non-financial companies listed on Abu Dhabi Securities Exchange (ADX). To achieve this objective, the annual reports of all non-financial companies listed on ADX for the years 2010-2012 are used to develop a proxy of the quality of corporate reporting and extract possible variables explaining the quality of corporate reporting. Variables employed in this study are size, profitability, leverage, age, industry type, percentage of shares owned by government, cash dividends, and presence of dominant personality serving on the company’s board of directors. The results of the analysis revealed that the quality of corporate reporting of the non-financial companies listed on ADX is relatively high (83% of the expected disclosure). The analysis further pointed to positive and statistically significant association between the quality of corporate reporting and variables such as size, industry type, leverage and age. On the other hand, negative and statistically significant association appeared between the quality of corporate reporting and the presence of dominant personalities on the company’s board of directors.

This paper studies the impact of real estate prices on the payout policy of firms. Firms use corporate real estate (CRE) assets as collateral to obtain debt. Through this collateral channel, positive shocks to the value of CRE assets allow firms to increase their leverage in order to finance not only investments but also payouts. We find that a $1 increase in the value of CRE assets results in a 0.33 cents increase in the cash dividends, and a 0.27 cents increase in share repurchases. Because firms are reluctant to decrease their dividend payout, the decrease in dividends when the value of their CRE assets decreases is either small or insignificant. We also find that firms that experience positive shocks to the value of their CRE assets smooth their dividends more and increase their probability of paying dividends.

We show that repurchases have not only became an important form of payout for U.S. corporations, but also that firms finance their share repurchases with funds that otherwise would have been used to increase dividends. We find that young firms have a higher propensity to pay cash through repurchases than they did in the past and that repurchases have become the preferred form of initiating a cash payout. Although large, established firms have generally not cut their dividends, they also show a higher propensity to pay out cash through repurchases. These findings indicate that firms have gradually substituted repurchases for dividends. Our results also suggest that before 1983, regulatory constraints inhibited firms from aggressively repurchasing shares.

The purpose of this study was to examine the influence of profitability, financial leverage and the acid test ratio, either simultaneously or partially on dividends in cash on basic industries and chemical companies listed in Indonesia Stock Exchange. This study population amounted to 36 companies, with the observation period of 2008-2010. Because of all the elements of the studied population, the census method used in this study and the methods of analysis used multiple linear regression analysis.The results of this study indicate that either simultaneously or partially profitability, financial leverage and the acid test ratio affects the cash dividend on the company base and chemical industries listed in the Indonesia Stock Exchange. Keyword: Profitability, Financial Leverage, Acid Test Ratio, cash dividends.

Payout policies based on share repurchase programs provide greater flexibility than do those based on cash dividends. We develop and test an empirical model in which strongly-governed companies outperform weakly-governed companies after announcing share repurchase programs. Our findings include positive associations between strong governance and both post-announcement adjusted operating performance and abnormal stock returns. The results are robust to sample selection bias, different sample criteria, governance measurement, and various control variables. In addition, governance strength is associated with larger post-announcement changes in CEO incentive compensation and merger and acquisition activity, both of which we argue are consistent with strongly-governed companies using the financial flexibility derived from choosing share repurchases over cash dividends to drive better performance. Consistent with current literature on attenuation of former anomalies, the associations we find between governance and post-announcement performance tend to disappear in the latter half of our sample period.

For many years, firms payout policies have been discussed widely by economist and finance experts but there is no agreement on why firms payout cash. Firms chose to pay cash dividend to their shareholder and believed to have a payout policy but what determines it remains is a question. Despite the presence of low cost methods of maximizing shareholders wealth firms have maintained high dividend payments regardless of their earnings. Two economists, Miller and Modigliani have contributed a significant amount of research in explaining relevancy of firm’s dividend polices to the shareholders’ wealth. An early study by John Lintner was able to explain the payout policy of a firm but it failed to show what motivates firms to pay dividends. Several economists consider the role of taxes and shareholder preference in determining firm’s policy but evidences suggest that decision makes do pay too much consideration to these factors. Many studies have discussed the changing trends in dividends payouts while advocating the changing preference of manager’s with the rising popularity of share repurchases, our findings suggest the opposite - as we show that companies have actually increased the dividend payouts.

This paper develops a model which explicitly incorporates the impact of the payment of dividends on the underlying stock into the valuation of both American and European calls and puts. Unlike earlier models, what we call the Dividend Adjustment Merton (DAM) model neither assumes arbitrary continuous dividends nor uses ad hoc methods to adjust for discrete dividend payments. Instead, it assumes the existence of a Miller and Modigliani (1961) valuation neutral dividend policy and adjusts Merton's constant proportional dividend model to incorporate any known schedule of discrete cash dividends of this type. The DAM model produces results which are equal to or superior to those of the separate models now used to value American calls (the Roll-Geske-Whaley model) and American puts (the Geske-Johnson model) on dividend paying stocks. It has the virtue of being internally consistent in that the same model can be used to value both calls and puts. In developing the DAM model, the paper clarifies the role of dividends and dividend policy in determining option values. It also produces significantly tightened boundary conditions for option values.

This paper presents evidence for the period 7/62-12/89 that individual NYSE and AMEX stocks provide relatively high average excess returns on the payment dates of quarterly cash dividends and several subsequent trading days. Additional results indicate that returns during the payment period: (a) are not a manifestation of the January, monthly or dividend yield anomalies; (b) are positively related to the stock's dividend yield; and (c) are higher for firms that have dividend reinvestment plans. These findings are consistent with a tendency by stock-holders to reinvest dividend income into the stock of the paying firm, thereby increasing demand for the stock and raising its price. Additional evidence links the returns on these days with (previously-documented) excess returns around the ex-dividend date.

This paper analyzes the debt ratio and the scale of cash dividend among the internationalized and domestic electronic industries in the US from 1999 to 2008 as the reference for financing strategies and decision. The evidence shows that the debt ratio and the payout cash dividend ratio in the internationalized electronic firms are lower than those in domestic electronic firms. Due to the uniqueness and the high profit ability of the internationalized electronic firms in the US, they have more earnings and inside capital so that the debt ratio is lower. Also, the internationalized electronic industries in the US have higher internationalization level with higher system risk level but their payout cash dividend ratio is less in that they tend to keep the cash against any incident.

Through a temporal-spatial analysis over 1971 through 2007 for India, we attempt to study what kind of firms omit cash dividend, and how the cash dividend payers and non-payers over the size and sign of earnings heterogeneity differ in respect of their different financial characteristics and propensity to pay? It is examined whether changing firm characteristics and/or changing propensity to pay determine corporate dividend decisions and influence them to pay or omit cash dividends. In line with the global trends we uncover evidence in favor of decreasing cash dividend payment behavior among Firms in the post-reform periods compared to the former. A significant decrease in the number of firms paying equity cash dividends is documented across small, medium, and large firms and also across firms reporting profits and losses in the further-reform periods. Very importantly we identify and attribute the reason to omit dividend to decrease in general likelihood (propensity) by firms to pay, despite their characteristics.