scholarly journals Dividend Policy Trend: A Comprehensive Study on the Listed Industrial Sector of Bangladesh

2019 ◽  
pp. 2
Author(s):  
Mohammad Shahidul Islam ◽  
Adnan Atm
Keyword(s):  
Capital Market ◽  
Dividend Policy ◽  
Manufacturing Sector ◽  
Industrial Sector ◽  
Medium Size ◽  
Cash Dividend ◽  
Parametric Test ◽  
Listed Firms ◽  
Size Firm ◽  
The Capital Market

The financial decision is rotated around the dividend decision. The objective is to identify the dividend pattern and the management’ views of dividend policy for revealing the present scenario of dividend practices in the capital market of Bangladesh. The parametric test, non-parametric test and percentile are used for inferring the result. In the manufacturing sector, the miscellaneous sector provides the highest payout. The DPS, EPS, MPS of the large size firm is better than small and medium size firms. The payout of the older firms is more than the newly listed firms. The highest payouts are in medium leveraged firm, low risk’s firm, medium PE ratio’s firm. The survey results reveal that the both shareholders and companies prefer the cash dividend most because of majority shareholders’ expectation. The most of the companies pay cash dividend with stable payout. The majority companies follow increasing trend in dividend payment but there is no satisfactory research to justify the investors’ preference. The capital market related stakeholders should follow these findings.

Does earnings transparency affect corporate payout decisions?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yogesh Chauhan ◽  
Rajesh Pathak
Keyword(s):  
Path Analysis ◽  
Fixed Effects ◽  
Financial Constraints ◽  
Dividend Policy ◽  
Cash Dividend ◽  
Content Type ◽  
Listed Firms ◽  
Panel Data Estimation ◽  
Signaling Hypothesis ◽  
Data Estimation

PurposeThe paper examines how earnings transparency affects dividend payouts for Indian firms. The authors also explore the channels through which earnings transparency affects dividend payouts.Design/methodology/approachThe authors employ panel data estimation with fixed effects to examine the role of earnings transparency on dividend payouts. The authors also use path analysis to explore causation. The paper uses a sample of more than 2000 Indian listed firms, over the period 2001–2016.FindingsThe authors report that firms showing grater earning transparency pay more cash dividend. Their results do not support the signaling hypothesis about the dividend. However, these results provide explicit support to the theory that corporate dividend policy is an outcome of information asymmetry. Moreover, the path analysis reveals the effect of earnings transparency on corporate payout through the financial constraint channel. The results are robust to idiosyncratic controls; alternate measures of payout; alternate models; endogeneity concerns; and the alternate channel of returning money to stockholders.Practical implicationsManagers should also examine earnings transparency while formulating an adequate dividend policy for their firms. This study also helps investors to identify dividend-paying stocks.Originality/valueThis study particularly contributes to the literature examining the effect of earnings quality on dividend payouts through its effect on financial constraints. We, therefore, connect two streams of research that contemplate the relation between accounting-based information variables and dividend payouts and the relationship between financial constraints and dividend payouts. Moreover, using path analysis uniquely, the authors provide evidence on the relative importance of both the direct and the indirect link.

scholarly journals Dividend Practices in Listed Companies: Study on the Manufacturing Sector of Bangladesh

2019 ◽  
Vol 81 (1) ◽  
pp. 1-19
Author(s):  
Mohammad Shahidul Islam ◽  
Atm Adnan
Keyword(s):  
Capital Market ◽  
Manufacturing Sector ◽  
Listed Companies ◽  
Manufacturing Firms ◽  
Organizational Policies ◽  
Contemporary State ◽  
The Capital Market

AbstractThe dividend model of the listed manufacturing firms and the organizational policies related to dividend decisions are analyzed to reveal the contemporary state of the payout pattern in the capital market of Bangladesh. This study exhibits the settings of dividend disbursement in association with the diverse aspects of the firm such as industry segment of the firm, the age of the firms, size, leverage, risk, and earnings.

scholarly journals The Effect of COVID-19 Pandemic on Corporate Dividend Policy in Indonesia: The Static and Dynamic Panel Data Approaches

Economies ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 11
Author(s):  
Georgina Maria Tinungki ◽  
Robiyanto Robiyanto ◽  
Powell Gian Hartono
Keyword(s):  
Panel Data ◽  
Dynamic Model ◽  
Method Of Moments ◽  
Capital Market ◽  
Dividend Policy ◽  
Generalized Method Of Moments ◽  
Dynamic Panel Data ◽  
Positive Signal ◽  
Dynamic Panel ◽  
The Capital Market

This research examines the effect of the crisis due to the COVID-19 pandemic on dividend policy in Indonesia. The purposive sampling method was used to collect data from corporates listed on the IDX from 2014 to 2020 and analyzed using static and dynamic panel data approaches. The fixed-effect models (FEM) were selected for the static panel data regression. Meanwhile, the first difference-generalized method of moments (FD-GMM) and system-generalized method of moments (SYS-GMM) were used for determine the robustness of the estimated dynamic panel data. The results showed that the crisis due to the pandemic led to higher dividend distribution on SYS-GMM. Furthermore, companies maintained the dividend level as a positive signal for investors which lifted the sluggish trade condition in the capital market. Profitability and previous year dividends positively affect dividend policy robustly. Furthermore, the results showed that age affects dividend policy on FD-GMM. Financial leverage has a robust effect, and firm size has an effect on FD-GMM in different directions, while investment opportunity does not affect dividend policy. Statistically, the FEM selected that violates the best linear unbiased estimation was proven to form parameters that were not much different from the estimates produced by the dynamic model, both from the coefficient of influence direction and significance, and the omitted variable bias occurs as evidenced in the robust test with dynamic model was solved. This research is also used as a reference for considering investors’ investment decisions in the new normal condition. Therefore, dividend policy can be considered as a positive signal to investors with the ability to stock trading activities in the capital market.

scholarly journals The Role of Institutional Ownership and Industry Characteristics on the Propensity to Pay Dividend: An Insight from Company Open Innovation

2020 ◽  
Vol 6 (3) ◽  
pp. 74
Author(s):  
S. Martono ◽  
Arief Yulianto ◽  
Rini Setyo Witiastuti ◽  
Angga Pandu Wijaya
Keyword(s):  
Agency Theory ◽  
Dividend Policy ◽  
Manufacturing Sector ◽  
Institutional Ownership ◽  
Industrial Sector ◽  
Free Cash Flow ◽  
External Monitoring ◽  
Industrial Sectors ◽  
Sectoral Differences ◽  
Propensity To Pay

The purpose of this study is to test the free cash flow agency theory hypothesis; namely, (a) whether differences in industrial sector affect a company’s propensity to pay dividends, and (b) whether institutional ownership is able to substitute for the propensity to pay dividends as a bonding mechanism. The analysis uses logistic regression to explore the existence of institutional ownership as a substitute for paying cash dividends in companies belonging to different industrial sectors. The results show that companies in the manufacturing sector have a greater propensity to pay dividends compared to those in non-manufacturing sectors. The results also indicate that low institutional ownership, as an external monitoring mechanism, can substitute for increasing the propensity to pay dividends. Overall, the results are consistent with implications in dividend policy. The results support the notion that the propensity to pay dividends accommodates different behavioral factors, considering sectoral differences. In addition, the results illustrate the relevance of alternative theories in explaining dividend policy from the perspective of agency theory. The results show that sectoral comparisons, in addition to institutional ownership factors, play important roles in the propensity of Indonesian companies to pay dividends. This study shows that each industry sector has different income characteristics, which affect the differences in propensity to pay dividends.

scholarly journals WOMEN IN A DUAL BOARD SYSTEM AND DIVIDEND POLICY

2021 ◽  
Vol 24 ◽  
pp. 129-150
Author(s):  
Tastaftiyan Risfandy ◽  
Timotius Radika ◽  
Leo Indra Wardhana
Keyword(s):  
Board Of Directors ◽  
Dividend Policy ◽  
Gender Diversity ◽  
Cash Dividend ◽  
Listed Firms ◽  
Dividend Payments ◽  
Board Gender Diversity ◽  
And Behavior ◽  
Board System

We investigate whether firms with the presence of female on its board of commissioners and board of directors are associated with higher dividend policy. This paper uses Indonesian setting as a country with a dual board system implying that the role of board of commissioners and board of directors is explicitly separated. Using panel data on 525 publicly listed firms in Indonesia between 2011 and 2018, we find that the women's presence has different impacts on the dividend policy depending on their role as an executive or non-executive on the board. Female directors are negatively associated with cash dividend payments, while female commissioners positively impact dividend payment in the case of family-controlled firms only. Our results contribute to the literature on board gender diversity by showing different roles and behavior of boards in each tier in the corporate dividend policy, thus providing insights on corporate governance in a two-tiered board system in developing countries.

scholarly journals Determinants of dividend policy

2019 ◽  
Vol 16 (1) ◽  
pp. 167-177
Author(s):  
Asma Salman
Keyword(s):  
Capital Market ◽  
Financial Management ◽  
Dividend Policy ◽  
Pearson Correlation ◽  
Stock Exchanges ◽  
Statistical Techniques ◽  
Agency Conflicts ◽  
Signaling Mechanism ◽  
Listed Firms ◽  
Dividend Signaling

Pakistan’s capital market and economy have significant features for examining the dynamics of the dividend policy. The agency conflicts between the management and the investors of the firms are main barriers to the success of the firm. The shareholder is generally taking away all the rights and similarly has a control on the decision concerning the dividend policy. The dividends are conveying better information than any other source regarding the firm’s prospects. The aim of this research is to identify and analyze the influence of shareholder preference and dividend signaling on the dividend policy of the corporations in Pakistan. The respective study presents the analysis of top financial management beliefs by taking eighty listed corporations on Pakistani stock exchanges during 2017–2018. Pearson correlation and multiple regressions are applied on responses to explore whether there is an influence regarding the shareholder preferences and the signaling mechanism on the dividend policy of the listed firms in Pakistan. Through statistical techniques the findings proved that shareholder preferences and dividend signaling have a positive and significant relationship with the dividend policy of listed corporations. Dividend policy is the response of investor preferences and signaling aspect of dividends.

scholarly journals Investor Sentiment, Innovation Investment and Cash Dividend

2019 ◽  
Vol 11 (7) ◽  
pp. 97
Author(s):  
Xiaoyang Xu ◽  
Adubofour Isaac ◽  
Lizhong Hao ◽  
Dandan Wang
Keyword(s):  
Firm Performance ◽  
Dividend Policy ◽  
Critical Role ◽  
Investor Sentiment ◽  
Positive Association ◽  
Cash Dividend ◽  
Listed Firms ◽  
Corporate Innovation ◽  
Negative Sentiment ◽  
The Impact

Investor sentiment plays a critical role in corporate innovation investment. Firms resort to innovation in their attempts to satisfying the demands of their investors. We argue empirically in our study that investor sentiment has impact on firms’ innovation decisions. We also argue that, strong negative sentiment has higher propensity to foster corporate innovation investment. We analyzed a nine- year panel data ranging from 2009-2017, which consisted of 3,558 Chinese listed firms. A verification of the impact of dividend policy on firms’ innovation investment was conducted. We found that, favorable dividend policy would trigger corporate innovation investment. We also found a statistically significant relationship between innovation investment and firm performance. Our findings showed a positive association between corporate innovation investment and firm performance. We also conducted a series of robustness checks on our empirical models and then discussed the contribution of our study, theoretically and practically.

scholarly journals THE SUBSTITUTION FINANCING EFFECT OF SUPPLIERS’ TRADE CREDIT ON CUSTOMERS’ TRADE CREDIT IN CHINA

2021 ◽  
Vol 22 (6) ◽  
pp. 1456-1475
Author(s):  
Chun Guo ◽  
Wunhong Su ◽  
Xiaobao Song
Keyword(s):  
Capital Market ◽  
Trade Credit ◽  
Bank Credit ◽  
Financing Constraints ◽  
Market Liberalization ◽  
Listed Firms ◽  
Trade Credits ◽  
Capital Market Liberalization ◽  
The Capital Market

This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers’ trade credit on customers’ trade credit, indicating that firms with higher suppliers’ trade credit have lower customers’ trade credit. Moreover, suppliers’ trade-credit substitutes customers’ trade credit by alleviating financing constraints. Customer concentration weakens the substitution financing relation. Finally, the substitution financing effect of customers’ trade credit on bank credit is more pronounced than that of suppliers’ trade credit. As exogenous policy shock, the capital market liberalization has no significant impact on the substitution financing relation between heterogeneous trade credits. This study reveals that trade credit is heterogeneous rather than homogeneous. The substitution financing effect also exists in trade credit inside, which expands the existing literature’s understanding of trade credit and the substitution financing theory’s connotation.

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