DIVIDEND

We examine the intraday trading response of participants in the common stock market and in the preferred stock market to announcements of dividend increases on common stock. We find that participants in the preferred stock market respond more slowly to the ...

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

Pembayaran dividen dilihat dari kacamata perusahaan tergolong sebagai tindakan atau aksi korporasi yang paling ditunggu-tunggu oleh investor. Terutama pada saham-saham yang tergabung dalam indeks LQ45. Pembagian dividen ini dapat mengubah persepsi investor terhadap harga saham di bursa. Pengujian kandungan informasi dalam penelitian ini dimaksudkan untuk mengetahui reaksi pasar terhadap cum date dividen. Reaksi pasar ditunjukkan dengan adanya perubahan tingkat keuntungan dan volume perdagangan saham. Tujuan penelitian ini adalah untuk mengetahui ada tidaknya perbedaan tingkat keuntungan dan volume perdagangan saham yang terdaftar di indeks LQ45 sebelum dengan setelah cum date pembagian dividen. Pengujian perbedaan tingkat keuntungan dan volume perdagangan saham dilakukan dengan menggunakan uji t berpasangan. Uji t dilakukan pada 4 variabel, yaitu tingkat keuntungan harian, tingkat keuntungan yang diharapkan, variabilitas tingkat keuntungan, dan aktivitas volume perdagangan saham selama 20 hari sebelum dengan 20 hari setelah cum date dividen. Hasil uji menunjukkan bahwa tingkat keuntungan harian, variabilitas tingkat keuntungan, dan aktivitas volume perdagangan saham mengalami perbedaan signifikan dengan t hitung berturut-turut sebesar 0,034; 0,003; dan 0,034. Ketiga t hitung tersebut lebih rendah daripada tingkat signifikansi yang telah ditentukan sebelumnya, yaitu 0,05. Sedangkan tingkat keuntungan yang diharapkan tidak mengalami perbedaan yang signifikan. Hal ini ditunjukkan dengan t hitung sebesar 0,371; lebih tinggi daripada tingkat signifikansi yang telah ditentukan sebelumnya (0,05) Dengan demikian, dapat disimpulkan peristiwa cum date dividen memiliki kandungan informasi yang dapat mempengaruhi keputusan investor dalam berinvestasi.

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Modiglian and Millers" thinking on dividend policy revolutionizes the evolutionary dividend puzzle and builds upon what scholars inaugurated about six centuries ago when first joint-stock companies' dividend earnings history was all about sharing proceeds from voyages where parts were bought or sold by Captains in the open market. Later in the 16 th-century, shares were invented and traded in denominations by various captains. Many scholars have since packaged the dividend argument into various theories of dividend. However, indecisiveness is witnessed on whether to eat the "seed" or secure dividends from retained earnings and the impact this has on the value of the firm. The puzzle continues to be a conundrum to many researchers of modern times. This paper tries to underscore dividend theories analytically and zeroes in elaborately on Modigliani-Miller and Lintners" bird at hand theories from which all other theories of dividend draw.

Actuaries are professionals who apply mathematics to financial problems. They evaluate the financial implications of contingent events, in other words, events that are not certain to occur. They are often involved in managing the risks that can arise from undesirable contingent events. Actuaries evaluate the likelihood of future events. They also design ways to reduce the financial impact of undesirable events that do occur. To do their work, actuaries must have a high level of technical knowledge. For example, they need to understand the nature of insurance, the risks inherent in different types of assets, the ways in which statistical models can be used, and the legal and regulatory constraints that apply to the business. They must also have good business sense, problem solving skills, and the ability to communicate effectively with others. Their work often affects many stakeholders, so they must be able to balance different interests and observe high ethical standards in doing so...

This research aims to investigate the effects of dividend policies on a firms’ financial performance. The paper explores the research gap and then builds a research model using ROA, ROE, and Tobin’s Q as dependent variables, dividend rate and decision of dividend payment as independent variables. The paper collected data and financial statements of 450 firms that are listing on the stock market of Vietnam from 2008 to 2019. The analysis results indicate that the decision of dividend payment has negative impact to Vietnamese firms measured by accounting-based performance but this improve market expectation on firms. In addition, the paper finds that Vietnamese firms are offering low dividend rate which has a positive impact on accounting-based performance but a negative effect on market expectation. This paper proposes some instructive recommendations based on the findings, including a more appropriate model of dividend policies, a lower dividend rate, and clear decision of dividend ...

Westudyhowcorporatefirms’managementcansatisfytheshareholdersbysteadyandgrowingdividend payouts while financing investment growth from the profit. We set the percentage of the profit which is optimal for steady dividends and the rest to be allocated for investment and dividend buffer account. A mean reversion stochastic differential equation with investment function in the drift term has been used to find the optimal dividend and retainment levels. One of the findings shows that for each level of profit there exists a percentage which is optimal for paying steady dividends while financing investment growth. Also we find that having low interest rates is favourable for the strategy of paying steady dividend with investment growth. Moreover, we compared the proposed strategy with a situation of steady dividend without investment and found that the strategy with investment is more appropriate as it gives more values to the shareholders. In addition we find that the exponential and linea...

Purpose: The volatility in stock prices is one of the most discussed topics in finance. Many studies have been conducted to find the factors which cause fluctuation in stock prices and different results have been found. In this study an attempt has been made to see the affect of dividend yield, dividend payout ratio, return on equity, earning per share and profit after tax on stock prices in Pakistan. For this purpose four non financial sectors (Sugar, Chemical, Food and personal care, Energy) have been selected. A sample of 63 companies listed at Karachi stock exchange was analyzed for the period of 2006-2011. Methodology: Ordinary least square regression model has been applied on panel data. Findings: The results indicate dividend yield and dividend payout ratio which are both measures of dividend policy have significant impact on stock price. Dividend yield is negatively related with stock price and dividend payout ratio is positively related with stock price which means that the...

Purpose – The interest paid on own capital can benefit companies in the Brazilian capital market as it can be considered a business expense and is, therefore, deductible as a corporate tax. The purpose of this paper is to assess the impact of interest on equity (IOE) on capital structure decisions.

Design/methodology/approach – The initial sample consisted of 524 publicly traded companies from different industries in the Brazilian capital market that were listed on Bovespa. Companies in the finance, insurance and funds industries were excluded from the sample due to the unique features of these financial intermediaries. Some companies in the initial sample were excluded due to a lack of published data, inactivity during the sample period, etc. Thus, the paper excluded those companies that did not have valid observations or failed to publish them. The final sample included 370 companies and covered the nine-year period from 1998 through 2006.

Findings – To this end, the authors identified the main determinants of capital structure and analyzed, through panel data, the relationship of IOE in addition to other determinants of capital structure, such as size, profitability, investment opportunities, risk, sales growth, real interest rate and real exchange rate, in corporate debt. The novel contribution of this study is the inclusion and analysis of the IOE in studies on the determination of capital structure of Brazilian companies. A new capital structure scenario was created when Law No. 9.249/95 required changes in legislation, ceasing the restatement of balance sheets and allowing companies to compensate their stockholders through IOE. Before this change, companies could only benefit from the tax benefits of debt, using debt capital. Now, they can also benefit from the use of equity because, by requiting equity through the IOE, deductions of income tax and social contributions on net income are allowed by tax law because the IOE may be considered a financial expense.

Originality/value: The authors were not able to find any other publication of a similar study in a review of the extant empirical literature.

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

The global financial crisis has led to a range of reform proposals concerning the regulatory framework governing the banking sector—collectively referred to as “Basel III.” Although the proposed reforms are expected to generate substantial benefits by reducing the frequency and intensity of banking crises, concerns have been raised that, in the short term, the costs of moving to higher capital

Earnings management is one of the accounting tools employed by managers in order to manipulate the earnings of their companies through the utilization of accounting choices and discretionary accruals. Extant literature posits that different dividend policies tend to have varying effect on earnings management. Prior studies have provided contradictory and conflicting results on the association between earnings management and dividend policy. This study therefore examines whether earnings management affects dividend policy of listed diversified conglomerate companies in Nigeria. The study adopts correlational research design. Secondary data for the study was extracted from the companies' annual reports and accounts. There are six diversified conglomerate companies listed on the Nigerian Stock Exchange as at 31st December 2017. The study took a census approach of all the six listed diversified conglomerate companies over the study period, 2008-2017. Panel regression technique was employed in analyzing the data collected for the purpose of the study. Results revealed that earnings management significantly but negatively affect dividend policy of Nigerian quoted diversified conglomerate companies. In line with the findings, the study recommends that investors whose primary motive is dividend should focus their investment more on quoted diversified conglomerate companies as their earnings is free from earnings manipulation. Introduction Stakeholders use financial statements to provide information about the financial activities of an entity for major decision making. One of the fundamental variables of financial statements that stakeholders and regulators use for effective and efficient decision making is the reported earnings numbers. Reported earnings, particularly, the "accounting earnings" indicate firm's direction, reduces information asymmetry and ensures efficient capital allocation. This is achievable only if the managers did not alter the financial statements. The prevalence of corporate scandals that are related to earnings management practices have raised concerns and remain contemporary issues to researchers, regulatory bodies and investing public in the 21stcentury and during the last two decades in particular. Consequent upon the prevalence of these phenomena, a critical examination of dividends, as a means of rewarding investors cannot be overemphasized as dividends are components of reported earnings.

This paper is a product of a research project on Distortions to Agricultural Incentives, under the leadership of Kym Anderson of the World Bank's Development Research Group. The authors are grateful for helpful comments from workshop participants, and for funding from World Bank Trust Funds provided by the governments of the Netherlands (BNPP) and the United Kingdom (DfID). This paper will appear in Agricultural Price Distortions, Inequality and Poverty, edited by K. Anderson, J. Cockburn and W. Martin (forthcoming 2010). This is part of a Working Paper series (see www.worldbank.org/agdistortions) that is designed to promptly disseminate the findings of work in progress for comment before they are finalized. The views expressed are the authors' alone and not necessarily those of the World Bank and its Executive Directors, nor the countries they represent, nor of the institutions providing funds for this research project.

This study examines the association between dividend payout ratios and company’s earnings growth.  We also try to see the relationship and implication the dividend payout with related variable such as firm size, return on assets, historical earning growth, current earnings growth and dividend yield to firm’s future earnings. The sample involve of 100 listed companies in Kuala Lumpur Stock Exchange taken randomly and excluding financial companies.  The empirical evidence shows that a significant positive association between dividend payout ratios and firm’s future earnings. The finding of the study might be of interest to academicians and practitioners. This paper presents original research for dividend payout in Malaysia and implication to the company growth in the future. The result support existing literature on dividend payout and growth.