A Study on the Relationship between a Firm's Cash Dividend Policy and Its Value in Korean Stock Market

2015 ◽  
Author(s):  
Sung Hee Lew
Keyword(s):  
Stock Market ◽  
Dividend Policy ◽  
Cash Dividend ◽  
Korean Stock Market ◽  
The Relationship

scholarly journals HUBUNGAN PROFITABILITAS DAN DIVIDEN TUNAI DENGAN ICECUKUPAN KAS DAN LIKUIDITAS SEBAGAI MODERATING VARIABLE

2007 ◽  
Vol 7 (2) ◽  
pp. 141
Author(s):  
Megawati Olctorina ◽  
Michell Suharti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
The Other ◽  
Cash Dividend ◽  
Continuous Growth ◽  
Return On Equity ◽  
Other Hand ◽  
Dividend Distribution ◽  
The Relationship ◽  
A Company

<p class="Style1"><strong><em>The </em></strong><strong><em>objective of this research is to determine the relationship between profitability and the amount </em></strong><strong><em>of cash dividend policy. However this research examines the influences of cash adequate and </em></strong><strong><em>liquidity (current ratio)toward the relationship between profitability and cash dividend policy. We call </em></strong><strong><em>the influence as moderating variables. In general, investors have primarily objective that is to </em></strong><strong><em>increase their wealth by return as dividend or capital gain. On the other hand, the companyexpects </em></strong><strong><em>continuous growth and its going concern, also increase its stockholder's wealth. Factor that pre­</em></strong><strong><em>dicted influencing dividend distribution amount in this research are focused on profitability. Thus, </em></strong><strong><em>profitabiNy influences cash dividend policy in a company. However cash dividend should be paid </em></strong><strong><em>only when a company has adequate cash and good liquidity ratio. This research examines financial </em></strong><strong><em>statement of several companies are listed at Jakarta Stock Exchange for period ended December </em></strong><strong>31, </strong><strong><em>2000 until December 31, 2003. Data is collected from Jakarta Stock Exchange and Indonesia </em></strong><strong><em>Capital Market Directory 2004. This research uses statistical software TViews version 4,1 ''. The </em></strong><strong><em>result is cash adequate and liquidity moderate relationship between return on investment and cash dividen policy. On the other hand, return on equity has not significant relationship with cash dividend </em></strong><strong><em>Policy</em></strong></p><p class="Style1"><strong><em>Keyword : profitability, cash dividend, cash adequate, liquidity</em></strong></p>

scholarly journals Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

2015 ◽  
Vol 10 (11) ◽  
pp. 149 ◽  
Author(s):  
Narman Kuzucu
Keyword(s):  
Growth Rate ◽  
Panel Data ◽  
Stock Market ◽  
Dividend Policy ◽  
Emerging Market ◽  
Panel Data Analysis ◽  
Firm Level ◽  
Family Control ◽  
Relationship Of ◽  
The Relationship

<p>Dividend policy of firms is one of the most controversial issues of theoretical finance. This paper aims to investigate the firm-level factors influencing the dividend decisions of firms from an emerging market. We examined eight-year panel data for the period from 2006 to 2013 from the Turkish stock market (Borsa Istanbul). The results show that financial leverage, size, growth rate, age, profitability, ownership structure and P/E ratio are statistically significant. The relationship of leverage, growth rate, profitability and family control with dividends is negative, whereas the relationship of size, age and P/E ratio is positive. Therefore, firms with higher debt ratios / growth rates / higher earnings are likely to retain more of their earnings. The empirical evidence from the Turkish stock market shows that the maturity hypothesis proposed by Grullon, Michaely and Swaminathan (2002) best explains the dividend behaviors of firms. Accordingly, as a firm matures, the availability of profitable projects reduces and earnings decrease. As the investment opportunities reduce, the need for resources decreases and the firm increases dividend payouts to shareholders.</p>

scholarly journals The influence of dividend policy on the volatility of shares in the Romanian equity capital market

2018 ◽  
Vol 184 ◽  
pp. 04008
Author(s):  
Ciprian Cristea ◽  
Maria Cristea
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Price Volatility ◽  
Equity Capital ◽  
Share Price ◽  
Cross Sectional ◽  
Negative Effect ◽  
The Relationship

Dividend policy is one of the most debated topics in corporate finance and, at the same time, it represents an important issue from the perspective of both the managers of the firm and the investors. To the best of our knowledge, the literature regarding establishing the relationship between dividend policy and share price volatility of non-financial companies listed on Romanian stock market remains inexistent. This study attempts to identify how the share price volatility of non-financial companies listed on the Bucharest Stock Exchange for a period of sixteen years from 2002 and 2017 is influenced by corporate dividend policy. Results from a cross sectional multiple regression analysis revealed a negative effect of the two components of the dividend policy on the share price volatility. The results support the idea that the lower the dividend yield, the higher the risk to be faced by the shareholder. Growth in assets and share price were negatively related. Positive relationship between firm size and debt ratio to price volatility were identified. However, there was no significant relationship found between earning volatility and price volatility in the Romanian stock market.

scholarly journals Sustainability Managed against Downside Risk and the Cost of Equity: Evidence in Korea

2018 ◽  
Vol 10 (11) ◽  
pp. 3969
Author(s):  
Truong Thuy ◽  
Jungmu Kim
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Cross Section ◽  
Cost Of Capital ◽  
Downside Risk ◽  
Cost Of Equity ◽  
Cross Sectional ◽  
Korean Stock Market ◽  
The Cost ◽  
The Relationship

This study examines the relationship between sustainability managed against downside risk and the cost of equity in the Korean stock market during the 2000–2016 period. We employ downside co-skewness and downside beta as a measure of downside risk, to analyze the cross-sectional relationship between them and average portfolio stock returns. We have also carried out Fama–MacBeth regressions to find the required return for bearing downside risk. The results show that downside co-skewness can be used more effectively than downside beta to explain a cross-section of stock returns or cost of equity. The required premium for bearing downside risk, as measured by downside co-skewness, is approximately 19% per annum in the Korean stock market. This finding suggests that sustainable companies can raise their capital in the form of equity at 19% lower costs, and also implies that increasing sustainability can reduce the cost of capital.

scholarly journals The Effect Of Managerial Overconfidence On Leverage

2011 ◽  
Vol 8 (12) ◽  
Author(s):  
Cheonsik Park ◽  
Hyunseok Kim
Keyword(s):  
Stock Market ◽  
The Past ◽  
Korean Stock Market ◽  
Proxy Measure ◽  
Business Survey ◽  
Managerial Overconfidence ◽  
The Relationship

In this paper, we examine the relationship between managerial overconfidence and leverage. Analyzing a sample of firms listed on Korean Stock Market during the period from 1985 to 2007, we use the average of the past 12 months Business Survey Index (BSI) from Bank of Korea as proxy measure of managerial overconfidence. We find that managers tend to issue more debts when they have overconfidence and this result is consistent with Oliver (2009) and Yu et al. (2006).

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