Do Leverage, Dividend Policy and Profitability Influence Future Value of Firm? Evidence from India

2008 ◽  
Author(s):  
Saurabh Ghosh
Keyword(s):  
Dividend Policy ◽  
Future Value ◽  
Value Of Firm ◽  
Firm Evidence

scholarly journals RE-EXAMINING DIVIDEND PAYOUT, PROPORTION OF OWNERSHIP AND FIRM’S VALUE IN INDONESIA

2019 ◽  
Vol 4 (1) ◽  
pp. 53
Author(s):  
Yosman Bustaman ◽  
Agustini Agustini ◽  
Anita Juwita
Keyword(s):  
Capital Market ◽  
Firm Value ◽  
Dividend Policy ◽  
Cash Flows ◽  
Capital Gains ◽  
Net Income ◽  
Minority Shareholders ◽  
Dividend Payout ◽  
Value Of Firm ◽  
The Impact

We re-examining the impact of dividend policy and proportion of ownership on firm value in the Indonesian Capital Market, which include 2712 firm-year over the period of 2005-2016. Tobin Q measures firm value, dividend payout over net income is a measure of dividend policy, and meanwhile we also include proportion ownership of insider of company, foreign owner and government owner. Panel data regression model is used in our analysis. After controlling with firm specific variables; size of company, liquidity, profitability and leverage, we find that dividend policy is irrelevant in driving the value of firm in Indonesian capital market. This phenomenon might occur in Indonesia because market is characterized by short-term investment prospective from investors. They are less concern on dividend payment, more focus on capital gains. Additionally, it seems that insiders expropriate the firm cash flows for their benefits on the cost of minority shareholders with their control power, consequently value lower by the market. However, the higher the ownership by foreigner impact value higher by the market, positive reaction emerge possibly because the firm perceive applying good corporate governance. Concentrated ownership on government does not have significant relationship with the value of firm.

The “dividend puzzle” and the Russian stock market. Part 1

2020 ◽  
pp. 66-92 ◽  
Author(s):  
A. E. Abramov ◽  
A. D. Radygin ◽  
M. I. Chernova ◽  
R. M. Entov
Keyword(s):  
Stock Market ◽  
Financial Stability ◽  
Dividend Policy ◽  
General Context ◽  
Steady Increase ◽  
Main Research ◽  
For Profit ◽  
Dividend Payments ◽  
Stock Market Performance ◽  
Dividend Irrelevance

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

The relation between R&D accounting treatment and the risk of the firm: Evidence from the Italian market

2014 ◽  
pp. 33-54 ◽  
Author(s):  
Riccardo Cimini ◽  
Alessandro Gaetano ◽  
Alessandra Pagani
Keyword(s):  
Earnings Management ◽  
Fiscal Year ◽  
Investment Strategies ◽  
Capital Assets ◽  
Italian Market ◽  
D Investment ◽  
Firm Evidence

In this paper, we investigate the relation between the different accounting treatments of R&D expenditures and the risk of the entity in order to identify under which treatment insiders are more likely to carry out earnings management. By analysing the R&D investment strategies of a sample of 137 listed Italian entities that complied with the requirements of IAS 38 during fiscal year 2009, following Lantz and Sahut (2005), we calculate several indexes that show the preferences of insiders to account R&D expenditures as costs or capital assets, and we study the relation of such preferences with the risk of the entity, which we measure with the unlevered beta. We hypothesize that the entities, which considered the R&D investments as costs, are the riskiest ones due to the higher probability that insiders carried out earnings management. Our results confirm such hypothesis. This paper could have implications for academics and standard setters that could learn that behind accounting discretion, insiders could opportunistically behave against outsiders.

Pengaruh Keputusan Investasi, Kebijakan Hutang Dan Kebijakan Dividen Terhadap Nilai Perusahaan

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ivan Somantri ◽  
Hadi Ahmad Sukardi
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Mining Sector ◽  
Dividend Policies ◽  
Negative Effect ◽  
Debt Policy ◽  
Debt Policies

This study aims to determine how to influence simultaneously and partially investment decisions, debt policy and dividend policy on firm value in mining sector companies listed on the Indonesia Stock Exchange for the period 2013-2017. The research method used in this study is descriptive and associative methods. The population in this study were mining sector companies listed on the Indonesia Stock Exchange in the period 2013-2017, which amounted to 43 companies. The sampling technique used in this study is non probability sampling with purposive sampling method, so that the number of samples obtained is 8 companies. While the data analysis used in this study is panel data regression analysis with the fixed effect method. The results of the study show that partially investment decisions and debt policies have a positive effect on firm value. While dividend policy has a negative effect on firm value. In addition, the results of the study simultaneously show that investment decisions, debt policies and dividend policies affect the value of the company. The amount of investment decisions, debt policy and dividend policy in contributing influence to earnings management is 34.14%.

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