Search

This study aims to analyze the effect of good corporate governance (GCG) on dividend policy with the independent variables board size, board independent, institutional ownership on the dependent variable, namely dividend payout ratio (POUT) and dividend yield (YD). The data used in this study is secondary data sourced from the annual reports of non-cyclical consumer sector companies listed on the Indonesia Stock Exchange (IDX) during the 2017-2021 period. The research sample was selected using purposive sampling method in order to obtain 30 companies as samples. The data analysis used to test the hypothesis is multiple regression analysis using the Eviews 9 program. The results show that the independent board variable has a significant effect on dividend policy. This implies that a higher proportion of board independence cyclical consumer on the Indonesian stock exchange can encourage dividend policy. Meanwhile, the board size and institutional ownership variables have no significant effect on dividend policy

The purpose of this study is to determine the impacts of current ratio, debt to equity ratio, return on asset, total asset turnover ratio, and working capital turnover ratio on the dividend payout ratio in coal mining companies listed in Indonesia Stock Exchange 2016-2018. The sample used in this study was determined based on a purposive sampling method. The type of data used in this study is secondary data and the technique used to analyze the data in this study is panel data regression analysis. The results show that the debt to equity ratio has a negative and significant effect on the dividend payout ratio. While, current ratio, return on asset, total asset turnover ratio, and working capital turnover ratio have no significant effect on the dividend payout ratio.

PurposeThis study investigates if the widely held predictors of corporate leverage exhibit predictive consistency through times and across countries amidst country heterogeneities such as legal principles, state of economic development and protection of investors’ rights.Design/methodology/approachWe employ financial data for 3,197 unique firms from eight emerging and ten developed countries during the years 2001–2017 and use Tobit regression models, a two-step Fama−MacBeth(1973) regression and panel data regression techniques in order to ensure the robustness of estimates.FindingsWe find that firms in the civil French law system exhibit the highest average of a debt (around 27%), whereas firms based in high investors’ protection environment and in developed nations borrow significantly less than their counterparts. Furthermore, among predictors, including a firm's payout ratio, it returns on equity and the cash ratio except the P/B ratio have varying predictability for a corporate debt when firms are classified based on law systems, investors’ rights and the economic scenarios. The crisis period significantly affects the relationship of debt levels with legal systems, investors’ rights and economic development scenario. The author’s estimates are robust to alternate analysis.Originality/valueThis study is unique in its methodological approach and involves a considerably large number of countries and a longer study period for the results to be more generalizable compared to other existing studies.

This study aims to analyze the effect of liquidity, asset management, leverage and dividend policy on firm value at Food and Beverages Companies listed on the Indonesia Stock Exchange. The type of research used is quantitative research because the data used is numbers while the nature of this research is descriptive research. The population in this study amounted to 30 Food and Beverages Companies listed on the Indonesia Stock Exchange. The research sample used is in the form of financial statements of Food and Beverages Companies listed on the Indonesia Stock Exchange with a total of 20 companies from 2016-2019. The results of this study indicate that the current ratio, total asset turnover, debt to equity ratio and dividend payout ratio have a positive and significant effect on firm value at Food and Beverages Companies

PurposeTo examine the board of directors’ performance and if higher performance helps protect minority shareholders in an emerging capital market. Additionally, we determine if the different types of company ownership moderate the level of protection to minority shareholders.Design/methodology/approachThe study develops a measure of board performance with their compensation. And it tests its association with the dividend payout decision of 300 of the largest Malaysian public listed companies (referred to as PLCs) over the period 2008 to 2014.FindingsThe results find that higher board productivity in terms of return on capital employed is associated with higher dividend payout. Additionally, the study finds that the board performance measure interacts with race, ethnicity and gender of the board of directors and CEO duality to affect the dividend payout decision of Malaysian PLCs.Research limitations/implicationsIt is a single-country study of large Malaysian PLCs. And it uses only the governance mechanisms that have been shown in emerging capital markets to have the most significant effect on affecting the relationship between board performance and dividend payout.Practical implicationsThe findings show the importance of inclusivity and diversity in governing State-controlled firms in an emerging capital market.Originality/valueThe findings suggest improving corporate boards’ performance, protecting minority shareholders and contributing to the corporate governance literature. Notably, the study highlights boardroom diversity’s importance to enhance the boards of State-controlled firms’ performance.

This study aims to determine the effect of Cash Ratio, Total Asset Turnover and Return On Assets on Dividend Payout Ratio in the Various Industries and Consumer Goods Industry found on the Indonesian Stock Exchange. The populations of this study were all companies in the various goods industries and consumer goods industry in the Indonesia Stock Exchange of 85 companies in the period 2013-2017. The technique of determining the sample used is purposive sampling. The samples obtained are 23 companies incorporated in the various goods industry and consumer goods industry sectors in the Indonesia Stock Exchange for the period 2013-2017. The data analysis technique used is the classic assumption test and multiple linear regression analysis with the help of SPSS 20. Based on the analysis, the results show that Cash Ratio and Total Asset Turnover have no significant effect on Dividend Payout Ratio, while Influential Return On Assets gives positive and significant effect on the Dividend Payout Ratio.Keywords : Cash Ratio, Total Asset Turnover, Sales, Return On Assets, Dividend Payout Ratio

Purpose This study aims to analyze the influence of firm characteristics in dividend payout in a concentrated ownership setting. Design/methodology/approach This study is probably the first to use the lasso technique for model selection and error prediction in the study of dividend payout in India. The lasso method comprises subsampling the available data set and performing reiterative regressions on those samples to generate the model with the best fit. This study incorporates four different ways of performing lasso treatment to get the best fit among them. Findings This study analyzes the influence of firm characteristics on dividend payout in the Indian context and asserts that firms with growth potential and earnings volatility do not hesitate to cut dividends. This study does not find evidence for signaling, agency cost and life cycle theories in a concentrated ownership setting. Earnings is the single most important factor to have a positive influence on dividend, while excessively leveraged firms are restrictive of dividend payout. Taxation has a prominent role in altering the way firms pay dividend. Research limitations/implications The recent changes in buyback taxation offer another opportunity to test the reactive behavior of firms. Also, given the disregard for traditional motivations, further research needs to be done to determine if dividend adjustments (on the lower side) help enhance firm value or not. Practical implications This study may help investors view dividends in a proper perspective. Firms give importance to investments over dividends and thus investors need not dwell on dividend changes if firms fulfill their growth potential. Social implications It lends perspective to investors about dividend changes and its importance. Originality/value The methodology used for analysis is absolutely original in the literature pertaining to dividend policy in the Indian context. The literature is abundant with theories advocating or opposing the eminence of dividend payout; however, this study takes a holistic view of all influential dividend determinants in literature to understand dividend payout.

This study focuses on activist funds during the second wave of activism after the implementation of the Stewardship and Corporate Governance Codes in Japan. Based on reports of large-scale shareholdings (acquisitions of 5% shares or more) submitted by activist funds between 2014 and 2019, this study finds that the stock returns of target firms react positively to the intervention of activist funds. The positive correlation intensifies for funds classified as hostile or domestic. Unlike in the first wave of activism, activist funds do not necessarily target low-margin or undervalued firms in the second wave of activism. Comparing financial indicators of the targets of the pre- and post-acquisition periods of large blocks of shares by activist funds, return on assets tends to decline more than that of their matching peer control firms, while the dividend payout ratio tends to rise more. This study contributes to the related research in three ways. First, this study adds empirical evidence on hedge fund activism outside the U.S., which is still somewhat scant. Second, this study is the first in the English or Japanese language literature to focus on the second wave of activism in Japan. Third, this study presents empirical results that are distinct from those in prior studies focusing on the first wave, perhaps because institutional changes forced activist funds to focus more on engagement rather than selecting cheap firms.

This research aims to examine the effect of corporate governance on dividend policy. The ownership structure is divided into controlling ownership, government-controlled firm, foreign-controlled firm and board governance is divided to board independent and intensity as independent variables, while dividend payout ratio as dependent variable. Firm size, growth, return on assets, and leverage are also added as control variable. This research uses a sample consisting of 85 banking companies listed on Indonesia Stock Exchange in the period of 2013-2017. The purposive sampling method was used in selecting the research sample. Static panel data technique which was estimated using Tobit regressions are choosen for this research statistic analysis. The result of this research shows that controlling ownership and government-controlled firm have a positive significant effect on the dividend payout ratio, but foreign-controlled firm have a negative significant effect on the dividend payout ratio. Meanwhile, board independent and intensity have a positive but no significant effect on the dividend yield.

The purpose of this study was to determine the effect of fundamental analysis consisting of price earning ratio, net profit margin, price to book value, return on equity, debt to equity ratio, and dividend payout ratio on stock returns on blue chips on the Indonesia Stock Exchange. The research method used is multiple linear regression analysis method, and hypothesis testing is done by testing the significance of the effect simultaneously (simultaneously) using the F-test and testing the significance of the partial effect using the t-test. This study uses secondary data in the form of financial statements of companies listed in blue chips on the Indonesia Stock Exchange in 2005–2007. The results showed that simultaneously (simultaneously) operational effectiveness (price earning ratio, net profit margin, price to book value, return on equity, debt to equity ratio, and dividend payout ratio) have a significant effect on stock returns. Partially there is a negative and significant effect between the price earning ratio on stock returns. Partially there is no significant effect between net profit margin on stock returns. Partially there is no significant effect between price to book value on stock returns. Partially there is a positive and significant effect between return on equity on stock returns. Partially there is a positive and significant effect between debt to equity ratio on stock returns. Partially there is a positive and significant effect between the dividend payout ratio on stock returns.

The purpose of this study was to determine the effect of financial performance and dividend policy on Cumulative Abnormal Return for company shares in Jakarta Islamic Index. The population was all company stocks listed on The Jakarta Islamic Index from 2009 to 2018. The samples were selected by purposive sampling with the criteria the companies were consistently included in JII (not delisted and relisted) during the 2009-2018 period and those that met the criteria were five companies. Financial performance was proxies by Earning per Share, Price Earnings Ratio, Current Ratio, and Return on Equity. Meanwhile, dividend policy was proxies by the Dividend Payout Ratio. This research type was quantitative by using the panel data regression method. The results showed that Earning per Share effect on Cumulative Abnormal Return, while the Price Earnings Ratio, Current Ratio, Return On Equity and Dividend Payout Ratio variables had no effect on Cumulative Abnormal Return. The implications of this research for other parties consists of scientific development, especially in the field of financial management, and can be an input for investors in investing in shares on the Indonesia Stock Exchange (IDX) so that it can have a positive impact in the form of dividends or capital gains to investors. And can be used as a reference for further researchers by adding other variables that are not included in this study.

PurposeThe authors examine the stability of dividend payout and the consistency in its predictability using sample of firms from 18 different countries amid their prevailing heterogeneous formal institutions (such as the legal system, corporate governance), the distinct state of economic development (developing vs developed) and changing times (during the crisis vs the noncrisis periods).Design/methodology/approachThe authors use tobit regression models with distinct specifications for the authors’ investigations. The authors alternately analyze the study’s results using Fama–Macbeth (FM) (1973) and generalized least square (GLS) regressions.FindingsThe authors show a sharply declining stability in dividend payout with time using DeAngelo and Roll’s (2015) framework. In terms of predictive consistency, the authors report that only a few idiosyncratic factors predict dividends consistently, and these results hold qualitatively true across the robustness analysis. The firm's liquidity appears to be the most consistent predictor of dividends payout, whereas firm's size being on the other extreme. The results signify that the idiosyncratic factors that matter for firm's dividend policy are not country specific. Instead, it reveals commonality of predictors grounded on characteristics of countries such as legal environment, investor's protection, economic state (ES) and economic cycle.Originality/valueThe authors contribute to the dividends literature by providing the evidence of dividend instability through time and disapproving the stylized fact of sticky dividends. Besides, the authors provide international evidence of inconsistent predictability of dividends.

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).

The formation of Islamic capital market under the subcomponent of Islamic financial system scratch a milestones development of Islamic finance in Malaysia. The Islamic capital market operates in mirror with convention capital market in expending, deepening and broadening Malaysia financial system. Malaysia is one of the REIT markets that value both the Islamic and conventional practices, such flexibility makes the attract not only to the local investor but also Islamic investors and foreign investor. The major source that generates income for REIT is the rental of the commercial real estate invested and hold as portfolio by the REIT management company. Furthermore, Malaysia REIT is known to be defensive stocks which consist of cyclic income producing assets that has some potential of asset appreciation. On the other hand, it witnessed by the moderation of Malaysia government bond yields created a lower pressure on the REIT stock price and analyst’s report highlighted the uncertainties on global crude oil prices and inflation is main concerned to REIT investors. In addition, the revision of 2019 tax system in Malaysia furnished a long run affected the dividend payout and volatility of REIT stock price. Therefore, this impact on the REIT stock liquidity and trading volume experiencing anil liquid trading. Therefore, the impact of external forces towards the mirror of two type of Malaysia REITs is significant to the investors, policy makers and government to outline the short-run relationship and facilitate future growth. The Vector auto regression model, granger causality and variance decomposition employed in this study to analyze the mirror of two types Malaysia REIT stock return. The empirical finding shows that the variability of dividend yield is vital explanatory variables to explain the both type of REIT stock return in Malaysia followed by interest rate for Islamic REIT stock return. The mirror of conventional REIT further implicated that trading volume and global crude oil price are useful to forecasting the changes in the stock return. Nutshell, this study provides a discussion of Malaysia REIT stock return behavior and it should be given necessary attention by researchers in ensuring the newly develop Islamic REIT are competitive and stability as the conventional REIT.

The purpose of this research is to investigate the interaction and the nature of relation between corporate dividend policy, earnings per share and the market price of the stock and planning of the corporate toward tax aggressiveness using interest coverage ratio as an intermediary variable. Ordinary least square regression model has been applied on panel data, it has been used to examine the required impact and to see how tax aggressiveness is significantly - and in what direction - affected by the management decision (agency theory) toward dividends payout and how the earnings per share and stock market price affect the tax planning in Egypt using a sample of 48 non-financial listed companies for the period of 2012-2019. This research runs three multiple regression models to examine the relationships between research variables. In cross-sectional tests, the statistical results indicate that earnings per share have a positive significant impact on interest coverage, while dividend payout, return on assets, return on equity and gross profit margin have a significant negative relationship with interest coverage. The findings revealed that also that dividend payout; earnings per share, return on assets and gross profit margin have a positive significant impact on tax aggressiveness, while stock market price and return on equity have a significant negative relationship with tax aggressiveness. Furthermore, it was found that return on assets and gross profit margin have a positive significant impact on tax aggressiveness, while interest coverage and return on equity have a significant negative relationship with tax aggressiveness. These results are important for investors who are most concern about the financial conditions of firms they are planning to invest in especially in emerging markets like Egypt. Firm’s financial conditions determine the associated risks and, in turn the required rate of returns in terms of dividends payout and the share market price.

Research Question: The paper investigates the relationship between taxation and dividend payout decisions of companies in the Republic of Serbia. Motivation: Including taxation in dividend policy discussion may allow for better understanding of decisions of companies to pay dividends. Prior worldwide research results on the impact of taxation on dividend policy are inconclusive, often contradicting and cannot be universally accepted. Despite abundant research in previous decades, the key drivers of dividend policy of companies are still unknown and there exists a so-called dividend puzzle. In addition, the research on dividend policy of companies in transition countries (including the Republic of Serbia) is relatively scarce. On the other hand, research in transition countries is important as transition countries have a significantly lower level of capital market efficiency and liquidity, having a lower number of joint stock companies and a lower number of companies that regularly pay dividends. Idea: Since tax burden may be a significant obstacle for companies to pay dividends, it may be relevant to research into whether corporate income tax burden has an impact on dividend payout ratio of companies, as well as the impact of dividend tax that shareholders have to pay on the dividend payout. Data: The study captured 23 companies listed on the Belgrade Stock Exchange between 2013 and 2018 that paid dividends in at least one year. In total, the research involved 92 dividend payouts. Research data have been retrieved from the Business Registers Agency of the Republic of Serbia. Tools: Research hypotheses are tested using EViews and IBM SPPS software. Statistical methods included descriptive statistics, correlation and regression analysis, as well as non-parametric statistical tests for independent samples. Findings: The analysis shows that corporate income tax does not impact a dividend payout ratio of companies, indicating that companies do not consider the corporate income tax when deciding on dividends, mostly due to the effective tax rates being considerably lower than the statutory tax rate of 15%. Also, statistical tests show that the dividend tax does not impact the dividend payout ratio, as there is no significant difference in the dividend payout ratio between companies whose largest shareholder is high taxed and companies whose largest shareholder is low taxed. Contribution: Research results may be of interest for company management when designing the dividend policy as well as for investors when deciding on shares investment in accordance with their tax preferences.

Purpose: This study aimed to provide empirical evidence of the influence of Accrual Based Investment Ratio and Cash-Based Investment Ratios in detecting fraudulent financial reporting Research methodology: Fraudulent financial reporting in this study used a combined model of the cheating model (Beneish M-Score) with a bankruptcy model (Altman Z-Score). This study's sample was a non-financial company listed on the Stock Exchange during the observation period from 2010-2018. Sampling techniques with purposive sampling and obtained a total of 790 observations. Data processing was done via SPSS program version 16.0 using logistic regression. Results: This study proves that Earnings per Share, Dividend per Share ratio, Total Share Profitability Ratio, Dividend Profitability, Asset Efficiency Ratio influence in detecting fraudulent financial reporting while Price / Earning ratio, Dividend Ratio, Operating Cash Flow Ratio, Current Liability Coverage Ratio, Long Term Debt Coverage Ratio, Interest Coverage Ratio, Cash Generating Power Ratio, External Financing Index Ratio do not affect detecting fraudulent financial reporting Limitations: There are still inaccuracies in predicting Fraudulent Financial Reporting so that for future research, other combined models can be used in predicting Fraudulent Financial Reporting, including adding liquidity ratios, asset management ratios, debt management ratios, profitability ratios, and sufficiency ratios Contribution: This study provides implications for the signal theory that explains the usefulness of financial statements in decision making and predictions, including using financial ratios in predicting Fraudulent Financial Reporting Keywords: Fraudulent financial reporting, Accrual based investment ratio, Cash-based investment ratio, Beneish M-Score, Altman Z-score

This study aimed to obtain an empirical explanation of the role of debt policy and dividend policy as variables mediating the influence of profitability on stock prices. This study used six mining companies listed on the Indonesia Stock Exchange (IDX) during the period of 2012–2016 as samples, hence there were 30 observational data. The sampling technique in this study was purposive sampling. This study found that profitability had a positive effect on stock prices, but the increasing profitability would not necessarily reduce the debt policy. The increasing profitability did not significantly increase the dividend policy, however, increasing dividend policy would increase the stock prices. The results also proved that debt and dividend policy did not mediate the influence of return on equity on the stock prices.

This study aims to determine the effect of Dividend Payout Ratio (DPR), Leverage, and Interest Rates on Stock Beta in stocks listed on the Jakarta Islamic Index for the 2013-2019 period. The object of this research is the stocks that are consecutively included in the top 30 during the 2013-2019 period and always publish annual financial reports, namely 10 companies that are sampled. The results of this study indicate that simultaneously the dividend payout ratio (DPR), Leverage, and Interest Rate variables have a significant effect on Stock Beta. Partially Payout Ratio (DPR), Leverage, and Interest Rate have a significant effect on Stock Beta. The coefficient of determination (R Square), Dividend Payout Ratio (DPR), Leverage, and Interest Rate on Stock Beta is 41%. This shows that the Dividend Payout Ratio (DPR), Leverage, and Interest Rate can explain 41% of Stock Beta, while the remaining 59% is influenced by other factors.

Dividend policy is one of the most controversial areas of corporate finance. The paper presents the results of the research in the banking sector of the Republic of Serbia. The specific characteristics of the financial sector make the research on dividend policy determinants additionally complex. This study aims to determine the factors of dividend policy in the Serbian banking sector in the period 2009–2018. The model of random effects was chosen to test the relationship between dividend determinants and dividend payout. Empirical results show that previous years’ dividends have a significant positive effect on dividend policy. Individual investors can benefit from the research to a great extent, as well as bank managers, when creating dividend policies that would contribute to maximising profit and satisfying the needs of employees and shareholders in the long run.

This paper aims to examine the impact of five commonly used dividend determinants as; net profit, cash flow, size, market to book value, and slack on the dividend payout ratio of 19 Nepalese commercial banks. This study uses secondary data collected from annual financial statements of the banks listed on the Nepal Stock Exchange. A total of 95 observations of the variables five fiscal years are considered. The method used casual comparative research design and regression analysis is conducted. The results showed a positive and significant effect of two variables; market to book value and slack on dividend payout ratio. The result also showed the positive effect of size on the dividend payout ratio. However, the results indicated a negative effect of profitability and cash flows on the dividend payout ratio of the banks.

This study aims to determine and analyze the effect of Profitability, Leverage, Liquidity, Size, and Company Growth on Dividend Payout Ratio in the Indonesian capital market 2013-2018. The population of this research is 525 companies from all sectors listed on the IDX except for the finance sector. By using purposive sampling method, the number obtained is 10 companies. The data testing method used is multiple linear regression analysis. The results showed that simultaneously the variables of profitability, leverage, liquidity, size and company growth had no effect on the dividend payout ratio. Partially, profitability, leverage, liquidity, company size have no effect on the dividend payout ratio, while the company growth variable has a significant negative effect on the dividend payout ratio.

We investigate if macro-level social capital, which captures the notions of trust and honesty, has any effects on corporate payout policy. We find that firms situated in U.S. states (or counties) w...

The purpose of the study being studied is to examine the impact of dividends, debt, share prices on profitability in the transportation sub-sector services on the IDX. The data collection method in this research is the sampling technique. The total specimens in the studied study were 6 specimens. The assessment technique used is the multiple linear regression techniques with multiple values. This study describes that dividend payments have a partial impact on profitability, as evidenced by the t value of 2.639> 2.055 and has a sig value of 0.014 0.05. The share price has an impact on profitability, as evidenced by the t-count of -2.163

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.

This paper examines the effect of product market competition on the dividend policy of firms. Previous studies report different relationships between product market competition and dividend payout ...

This paper examines the ways in which three external governance mechanisms, namely market preferences, institutional investors, and debtholder monitoring, influence dividend payout decisions under a family-governance system. We find that family firms issue lower dividends when the dividend premium is high in the market. Institutional investors and family-controlled governance mechanisms interact to increase dividend payouts. Family firms under greater debtholder monitoring pay out more cash to shareholders. Our findings generate important policy implications.

The purpose this study to find variables that can influence dividend policy using the dividend payout ratio variable. The factor used is debt policy, credit risk, capital adequacy ratio, life cycle, capital structure, Inflation, growth domestic product, unemployment and oil price. The data of this study are 14 banks in Indonesia from 2009 - 2018. The test method of data is using panel data regression. The results of this study, there are 4 variables that affect dividend policy, namely credit risk, capital structure, inflation and oil prices. while other variables do not have a significant effect on credit risk. the results of variable oil prices are different from previous studies because the subject of this study is banking. Where the increase in oil prices can have a positive impact on dividend policy in the mining industry, but have a negative impact on the banking industry.Keywords: dividend policy, bank specific factors, macroeconomics, oil priceJEL Classifications: C1, E6, G21, Q41DOI: https://doi.org/10.32479/ijeep.10676

I propose a rare disaster model of an economy where the probability and intensity of climatic disasters are proxied by CO2 levels that are determined by inputs of carbons from the firms in the economy. Disasters affect the budgets, the labor allocations and investment decisions of households; the production and investment decisions of firms; and, monetary policy. Six propositions are developed relating carbon dioxide and climatic economic damages to financial variables: the risk-free rate, the price dividend ratio, and the risk premium. The six propositions are tested empirically using a unique data set for the United States over the period from March 1958 to December 2018. The data support the six propositions. For the strongest results, the carbon dioxide levels in the atmosphere are negatively related in the long run to the risk-free rate. Carbon dioxide levels are positively related to the risk premium in the long run.

This study attempts to identify the impact of dividend payout on the market and financial performances of listed entities in Colombo Stock Exchange (CSE). We selected 25 listed entities for this study for 06 years from the year 2014 to 2019. Dividend payout used as a key independent variable while Earning volatility, Net working capital, Capital structure and firm size considered as control variables. Stock return and Market Value Added (MVA) are used as the proxies for firm’s market performance while return on equity, return on Assets and Economic Value Added (EVA) are used as proxies for financial performance. In terms of analysis, panel regression was applied in order to identify whether there is an impact of dividend payout on firm financial and market performance. The findings revealed that there is a significant positive influence of dividend payout on firm stock return, return on equity, return on assets and EVA. Our findings become original as the first study to employ market performance indicators in this phenomenon. Henceforth, these findings are valuable for the policy makers specially for corporate managers and investors for their decision making.

This study aimed to examine the effect of Firm Size, Financial Leverage, Dividend Payout Ratio, and Firm Value toward Income Smoothing in BUMN Companies Listed on Indonesia Stock Exchange. Income Smoothing measured by Index Eckel’s. The Population in this study is BUMN companies listed on the Indonesia Stock Exchange in 2015-2019 Based on the purposive sampling method, the sum of a sample obtained from the population is 16 companies. Sources of data obtained from annual reports of companies listed on Indonesia Stock Exchange in 2015-2019. The analytical method for this study uses logistic regression analysis and Mann Whitney test with SPSS 21. Based on the result of the analysis showed Firm Size, Financial Leverage, Dividend Payout Ratio, and Firm Value are not influence Income Smoothing.

The objective of this study is to investigate the factors determining the share price volatility of listed companies in Colombo Stock Exchange (CSE), Sri Lanka. A sample of 72 listed non -financial firms from CSE in Sri Lanka is examined using panel data analysis for a five years period from 2013 to 2017. Dividend payout ratio, dividend yield, dividend per share, sales growth, leverage, exchange rate, firm size, earnings volatility and GDP are considered as explanatory variables. According to the fixed effect regression analysis, only 22% of the movements in share prices are explained by the explanatory variables considered in this study. Dividend yield shows significant positive impact on share price volatility whereas dividend per share shows the significant negative impact on share price movements. Exchange rate and firm size illustrate significant negative influence on share price volatility by indicating if firm size is large share price volatility will be high. But, dividend pay-out, financial leverage, earnings volatility and GDP are not significantly convince the share price volatility in this study. Therefore, it is concluded that dividend yield, dividend per share, exchange rates and firm size have significant impact on price volatility in Sri Lankan context. Dividend policy can be considered as the protective mechanism to maintain share price volatility in order to enhance the shareholders wealth.

Among factors that may be instrumental in affecting the dividend payout decision, this study aims to determine the effect of return on assets (ROA) and investment opportunities on dividend distribution in a company. Using secondary data from 10 Consumer Goods companies listed on the Stock Exchange in the period 2015 - 2019, the data were analyzed using panel regression using EVIEWS. This study found that ROA and investment opportunities can predict the Dividend Payout Ratio in the Consumer Goods Industry. The results suggest that the more profitable a company is, the more likely it is to pay high dividends. Also, high investment opportunities are good position increases a firm's ability to pay dividends.

This study aims to examine the factors that affect the Dividend Payout Ratio in food and beverage companies listed on the Indonesia Stock Exchange for the period 2011-2018. The research method used is purposive sampling in the sample collection technique, there are 7 companies that meet the criteria. In this study, it was analyzed using descriptive statistics and panel data regression methods with a fixed effect model to test the hypothesis. This research is processed using eviews 9 software. The results of this study Return on Asset, Current Ratio, Collateralized Asset do not have an influence on the Dividend Payout Ratio, but Debt To Equity Ratio, Firm Size have an influence on the Dividend Payout Ratio.

In this study we investigate the information content of firm payout policy to shareholders. We focus on the association between a firm’s payout policy and shareholders’ satisfaction with board directors, as expressed by the percentage of negative or withheld votes for directors during annual elections (shareholders’ dissent voting). We fill a gap in the literature by using shareholders’ voting results in the election of board members at annual meeting as a setting to examine shareholder perception of firms’ payout policies. We find that higher share repurchase and/or higher dividend payout are associated with lower shareholders’ dissenting votes. We also find that such relationship is conditional on the level of free cash flow, firm future performance, the degree of management entrenchment, and the type of institutional investors. Our study contributes to the payout literature by providing empirical evidence that shows the outcome of shareholders’ votes in director elections may be influenced by the board of directors’ payout decisions.

This study examines the liquidity risk of real estate investment trusts (REITs) as measured by their return sensitivity to marketwide liquidity shocks. Due to their unique dividend payout rules and...

Using the sample of China’s listed companies, this study investigates the effect of corporate innovation on dividend payout policy. We expect that managers from more-innovative firms would have more confidence in future corporate performance, and hence, be more motivated to signal future profitability in stock market through distributing cash dividends. Employing the number of effective patents to measure corporate innovation, we find that the propensity to pay cash dividends is higher among more-innovative firms. Moreover, more-innovative firms usually pay more cash dividends to their shareholders than that of less-innovative firms. The empirical results are robust to different model specifications and to various subsamples based on firm size. This study emphasizes the importance of stimulating corporate innovation in both domestic economic growth and shareholder protection. This study sheds light on the role of corporate innovation in major corporate decisions in China, which is the largest emerging economy in the world. Moreover, the empirical findings of this study also have a policy implication to Chinese regulatory bodies who have been urging firms listed in domestic stock exchanges to pay cash dividends. Regulatory bodies may spend more effort on encouraging innovation, as corporate innovation motivates the managers of listed firms to distribute profits to shareholders.

The analysis of the determinants of the dividend payout policy becomes even more relevant in a context of crisis. In this scenario, companies wonder which strategy shall prevail—either to keep the payout ratio constancy to signal to the market positive aspects about themselves or to adapt it to the external conjuncture, protecting themselves from future uncertainties. This being so, this study aims at identifying the determinants of the dividend payout policy, in the period before and after the former President Dilma Rousseff’s impeachment, by using logarithmic and probabilistic regression models. To this end, a sample of Brazilian non-financial publicly-held companies is considered, whose data are obtained from the Capital IQ base. As a result, the corporate dividend policy is identified as not being affected by the market environment. Such a fact indicates that Brazilian companies choose to maintain their dividend payout policy, even in scenarios of political uncertainty. This study differs from the others for analyzing the relationship between dividend payout decisions, whether in times of stability or in political and economic crisis.

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.

Equity premium is a vital number to consider in finance when making fund allocations and investment decisions. This study explores the relationship between (controllable) determinants of firm-level equity premiums in the context of the Pakistan stock market. It uses a sample of 306 firms’ annual data, from January 2001 to December 2015, using a two-stage least-squares method to estimate our panel data model (Wooldridge 2005; Arellano 2016). During the selected sample period, the average market premium of the Pakistan stock exchange (100 Index) was 20%. The average equity premium of individual firms was only 8%. Company fundamentals are considered determinants of firm-level equity premiums. Panel data econometrics techniques were used to estimate the modified version of the multi-factor model for the Pakistan Stock Exchange. It is found that the market premium, return on equity, dividend payout ratio, accounts receivable and firm size significantly and positively affect the firm-level equity premium. However, increase in the debt-to-equity and quick ratio negatively affect that premium. The company fundamental variables are controllable for the firms and can be improved by company management to encourage investors and maximize shareholder wealth. Key words: Pakistan stock exchange, Equity premium, Company fundamental, Multi-factor model. JEL: B15, B21, B22, C38, E4, E6, G12.

Corporate Payout policy is one of the interesting topics in corporate finance literature that attracted the attention of many researchers. Despite the extensive research in this area, there is a contradiction between researchers on what are the main determinants of corporate payout policy. Researchers have mainly focused on developed markets and looked at a single dimension of the dividend policy. Therefore, the current study explores the determinants of dividend payout ratio by analyzing the effect of profitability, free cash flow, investment opportunity, liquidity, leverage, firm size and ownership structure on two dimensions of the dividend payout policy: the dividend decision and the payout ratio, taking a sample of all Egyptian listed firms in the period from 2007 till 2020. The results reveal the significance of profitability and investment opportunity on the dividend decision. For the payout ratio model, it is found that free cash flow, profitability and managerial ownership are significant determinants of payout ratio. Finally, by analyzing the dividend-paying firms, the results reveal that financial leverage affects the payout ratio of these firms.