Dividend Policy in Indonesia: A Life-Cycle Explanation

2014 ◽  
Author(s):  
Leo Indra Wardhana ◽  
Eduardus Tandelilin ◽  
I Wayan Nuka Lantara ◽  
Eddy Junarsin
Keyword(s):  
Life Cycle ◽  
Dividend Policy

Stages of firm life cycle, transition, and dividend policy

2020 ◽  
Vol 33 ◽  
pp. 101226 ◽  
Author(s):  
Debarati Bhattacharya ◽  
Chia-Wen Chang ◽  
Wei-Hsien Li
Keyword(s):  
Life Cycle ◽  
Dividend Policy ◽  
Firm Life Cycle

scholarly journals Corporate Social Responsibility, Corporate Life Cycle, and Dividend Policy

2020 ◽  
Vol 27 (2) ◽  
pp. 101
Author(s):  
Eman Abdel-Wanis
Keyword(s):  
Corporate Social Responsibility ◽  
Life Cycle ◽  
Social Responsibility ◽  
Growth Stage ◽  
Dividend Policy ◽  
Business Environment ◽  
Life Cycles ◽  
Corporate Life Cycle ◽  
Corporate Social ◽  
The Impact

The aim of this paper is to investigate the impact of corporate social responsibility(CSR) on dividend policy through corporate life cycle (CLC) as a mediator using pathanalysis for 308 firms-observation for 80 non-financial firms during the period from 2014to 2017 using smart PLS (partial least square). This paper explores the impact of the socialresponsibility on the dividends policy and explores the role of each life cycle in this effecton dividends. The results show that firms in their growth stage are positively associatedwith CSR, while firms in stage of decline are less likely to invest in CSR. High CSR firmsmay use dividend policy to reduce the agency problems related to overinvestment in CSR.Results refer to corporate life cycle isn't influenced by dividends. The results show thatcorporate life cycles play an important role in enhance the relationship CSR and dividendpolicy especially in the growth stage in in the Egyptian business environment

Corporate life cycle, CSR, and dividend policy: empirical evidence of Indonesian listed firms

2018 ◽  
Vol 16 (2) ◽  
pp. 159-178 ◽  
Author(s):  
Febi Trihermanto ◽  
Yunieta Anny Nainggolan
Keyword(s):  
Life Cycle ◽  
Business Strategy ◽  
Charitable Giving ◽  
Dividend Policy ◽  
Maturity Stage ◽  
Socially Responsible ◽  
Bottom Line ◽  
Content Type ◽  
Listed Firms ◽  
Corporate Life Cycle

Purpose This paper aims to examine the association between corporate social responsibility (CSR) and corporate life cycle as well as dividend policy in Indonesia. Design/methodology/approach The paper develops two hypotheses that are tested empirically through multivariate settings. The tests are conducted using a sample of 527 Indonesian listed firms and 923 Indonesian firm-year observations between 2008 and 2015. Findings The findings support the hypothesis that CSR expenses increase when firms enter the maturity stage of their life cycle. On the triple bottom line components of CSR, firms which invest on CSR economic are in their maturity stage of their life cycle. The evidence also suggests that firms’ social donation and charitable giving increase as firms become mature. Furthermore, the strong evidence supports the hypothesis that firms’ CSR expenses positively affect dividend policy. This finding is robust to the alternative measurement of dividend payout, additional firms’ characteristics and instrumental variable to address endogeneity. Practical implications For investors in Indonesian listed firms, it is more profitable to invest in socially responsible firms than socially irresponsible firms. For firms, the results imply that spending in CSR does not reduce performance, thus becoming attractive for investors. Originality/value To the best of the authors’ knowledge, there is thin literature investigating the relation between corporate life cycle, CSR, and dividend policy in emerging markets while it is important as it could encourage companies to integrate CSR into their business strategy and transparently disclose their CSR activities. Further, as previous research on these topics mainly conducted using the US data (Rakotomavo, 2012; Benlemlih, 2014; Hasan and Habib, 2017), which most of CSR disclosures are voluntary, this paper contributes to the existing literature by examining these topics in a country where CSR is mandatory by the law.

The Dividend Initiation Decision of Newly Public Firms: Some Evidence on Signaling with Dividends

2012 ◽  
Vol 47 (2) ◽  
pp. 365-396 ◽  
Author(s):  
Jayant R. Kale ◽  
Omesh Kini ◽  
Janet D. Payne
Keyword(s):  
Life Cycle ◽  
Transaction Costs ◽  
Stock Price ◽  
Dividend Policy ◽  
Primary Objective ◽  
Price Effect ◽  
Public Firms ◽  
Dividend Signaling ◽  
Information Signaling ◽  
Tax Clientele

AbstractWe track the dividend initiation (DI) decisions from a sample of 6,588 firms that went public during the period 1979–2005 and find that 873 of them initiated dividends. Our primary objective is to determine whether information signaling can explain the DI decision. We find that variables suggested by the dividend-signaling models of John and Williams (1985) and Allen, Bernardo, and Welch (2000) are significant determinants of the DI decision and the associated announcement-period stock price effect. We also find support for the residual, agency, tax, clientele, transaction costs, catering, and life-cycle explanations of dividend policy.

scholarly journals GOOD CORPORATE GOVERNANCE, ANALYST COVERAGE, DAN TAHAPAN DAUR HIDUP TERHADAP KEBIJAKAN DIVIDEN

2011 ◽  
Vol 10 (1) ◽  
Author(s):  
Werner R. Murhadi ◽  
Liliana Inggrit Wijaya
Keyword(s):  
Corporate Governance ◽  
Life Cycle ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Life Cycle Stage ◽  
Least Square ◽  
Analyst Coverage ◽  
Set Size ◽  
Good Corporate Governance ◽  
The Relationship

This research objective is to observe the influences of good corporate governance, analyst coverage, company life cycle, investment opportunities set, size, and profitability towards the dividend policy. This study employs the corporate data from Indonesian Stock Exchange during 2005-2008 and weighted least square methods. The latest sample is 279 years of observation. The result shows that only life cycle stage of the company and its profitability are influential towards the dividend policy. The findings show that the relationship between the good corporate governance is consistent with the hypothesis but not significant.

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