scholarly journals Dividend Policy and Earnings Management Across Countries

2015 ◽  
Author(s):  
Wen He ◽  
Lilian K. Ng ◽  
Nataliya S. Zaiats ◽  
Bohui Zhang
Keyword(s):  
Earnings Management ◽  
Dividend Policy

Do discretionary accruals affect firms’ corporate dividend policy? Evidence from France

2018 ◽  
Vol 16 (2) ◽  
pp. 333-347 ◽  
Author(s):  
Anis Ben Amar ◽  
Olfa Ben Salah ◽  
Anis Jarboui
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Discretionary Accruals ◽  
Additional Measure ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose In financial literature, dividend payout decisions are determined by factors such as debt, liquidity, profitability, size and risk. The purpose of this paper is to identify the effect of earnings management measured by discretionary accruals based on Dechow et al.’s (1995) model on dividend policy. Design/methodology/approach This research will use panel data analysis to test the effect of earnings management on dividend policy. The authors selected 280, French non-financial companies, listed on the CAC All Tradable index for the 2008-2015 period. Findings Using a sample of 2108 firm-year observations, the authors find a positive impact of earnings management on dividend policies of firms. Besides, there is a positive/negative relationship between the size of the firm and the dividend policy. Moreover, this paper has dealt with some factors such as debt, the risk of the firm and liquidity which may affect the corporate dividend policy. The results are robust as the authors adopted an additional measure of dividend policy. Practical implications The findings may have important implications for analysts, investors, regulators and academics. First, the study shows that earnings management is a common practice in the French context and constitutes a major objective of dividend policy. Better still, identifying the other variables that influence the dividend policy provides a clearer understanding of dividend policy for investors, analysts and academics alike. Second, the study provides ample evidence of agency problems between various partners in French capital markets, highlighting the necessity to establish new corporate governance mechanisms. This is highly relevant for policymakers in their quest for a better financial market. Originality/value This study extends the literature on the impact of dividend thresholds on earnings management by showing that firms run earnings to inform the market that the company can distribute dividends.

The Effect of Earnings Management on Dividend Policy in Pakistan

2017 ◽  
Vol 9 (1-3) ◽  
Author(s):  
Faiza Saleem ◽  
Mohd Norfian Alifiah
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Annual Data ◽  
Cross Sectional ◽  
Return On Equity ◽  
Dividend Payments ◽  
Oil And Gas Companies ◽  
The Impact

The aim of this study was to find out the impact of earnings management on dividend policy of oil and gas companies listed at the Karachi stock exchange. The study uses annual data of oil and gas companies for the period from 2008 to 2015. The dependent and independent variables are dividend policy and earnings management and the three control variables are leverage, return on equity and firm size. Modified cross sectional Jones model (1995) was used for calculating discretionary accruals which has been used as proxy for earnings management whereas measurement of dividend policy has been proxy by dividend payout. The findings from regression analysis indicate that earnings management has insignificant relationship with dividend policy of selected firms in Pakistan. Financial crisis in the world and economic decline period are the main reasons of this relationship. In the decline period the firms try to increase manipulation in earnings as a result the company starts reducing dividend payments. It is concluded that there are some other factors that may influence the pattern of dividend payment in the firms.

scholarly journals Effects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms

2020 ◽  
Vol 11 (4) ◽  
pp. 195
Author(s):  
Yousef Shahwan ◽  
Tareq Hammad Almubaydeen
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Structural Model ◽  
Negative Impact ◽  
Industrial Sector ◽  
Real Earnings Management ◽  
P Value ◽  
Board Composition ◽  
Board Size ◽  
The Impact

Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value<0.05 and 0.001 (two-tailed) respectively. While negative of dividend policy on REM was recorded at p-value>0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.

scholarly journals The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait

2020 ◽  
Vol 11 (5) ◽  
pp. 518 ◽  
Author(s):  
Sinan S. Abbadi ◽  
Murad Y. Abuaddous ◽  
Hanady T. Bataineh ◽  
Abdulla E. Muttairi
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Significant Relation ◽  
Kuwait Stock Exchange ◽  
Jones Model ◽  
Service Sectors ◽  
The Impact

This study has two main objectives. The first is to examine the impact of Earnings Management (EM) on dividend policy for the Kuwait’s industrial and service sectors. The second is to sieve out the possible explanations for the conflicting results regarding this topic. Using Modified Jones Model, a sample of 46 companies listed on the Kuwait Stock Exchange with a total of (184) firm-year observations form the period 2011-2016 reveals an absence of a significant relation between EM and dividend policy. In addition, this paper posits a possible relationship between EM, dividend policy and market maturity. 

Does Dividend Policy Drive Earnings Smoothing?

2014 ◽  
Vol 28 (3) ◽  
pp. 501-528 ◽  
Author(s):  
Nan Liu ◽  
Reza Espahbodi
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Earnings Persistence ◽  
Spurious Correlation ◽  
Earnings Smoothing ◽  
Alternative Measures ◽  
Jel Classifications

SYNOPSIS This paper examines the earnings-smoothing behavior of dividend-paying firms. We show that dividend-paying firms engage in more earnings smoothing than non-payers through both real activities and accrual choices. More specifically, dividend-paying firms with positive (negative) pre-managed earnings changes engage in more downward (upward) earnings management than non-payers. Additional tests suggest that the results are driven by dividend-related incentives and not the differences in the economic characteristics of dividend-paying firms, are robust to alternative measures of earnings management, and are not due to spurious correlation. We also show that earnings smoothing, in part, explains the higher earnings persistence of dividend-paying firms. These findings are consistent with a firm's dividend policy having an incremental impact on earnings-smoothing behavior. JEL Classifications: M41; G35

scholarly journals Pengaruh Corporate Governance Dan Manajemen Laba Terhadap Kebijakan Dividen

2014 ◽  
Vol 5 (2) ◽  
pp. 151
Author(s):  
Agustina Ratna Dwiati ◽  
Muhammad Bisyri Effendi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Multiple Regression ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Opportunity ◽  
Financial Firms ◽  
Investment Opportunity Set ◽  
The Impact

AbstractThe aim of this study is to test the impact of corporate governance and investment opportunity set toward dividend policy with earnings management as intervening variable. The sample of this study is non-financial firms listed in Indonesia Stock Exchange and also a member of Corporate Governance Perception Index on 2012 and 2013. The method that used in this study is multiple regression. The results showed that company with strong corporate governance really cared about shareholders interests by giving high dividend for them. Meanwhile, earnings management has no impact toward dividend policy.

BANK EARNINGS MANAGEMENT AND DIVIDEND POLICY UNDER AGENCY PROBLEM CONTEXTS

2020 ◽  
Vol 15 (02) ◽  
pp. 2050005
Author(s):  
DUNG VIET TRAN
Keyword(s):  
Earnings Management ◽  
Information Asymmetry ◽  
Dividend Policy ◽  
Bank Holding Companies ◽  
Holding Companies ◽  
Additional Information ◽  
Discretionary Behaviors ◽  
The Impact ◽  
High Information

Using a large sample of U.S. bank holding companies (BHC) from 2000:Q1–2017:Q4, we investigate the impacts of dividend policy to bank earnings management, and document that banks that pay dividends tend to be less opaque than banks that do not pay dividends. The dividend policy not only impacts the conditional average earnings management of banks, but also exerts influence on their dispersion. The impact of dividend policy appears to be more profound for highly opaque banks. We identify different conditions that motivate different discretionary behaviors of banks, which allows us to better observe different managerial motives between dividend-paying and dividend-non-paying banks. Under high information asymmetry context, there is valuably additional information conveyed by paying dividends, and it follows that the role of dividends as a means of conveying information is more pronounced. For banks subject to high agency problems, paying dividends make them to be less opaque through reducing the discretionary behaviors.

Shareholder Activism, Dividend Policy, and Earnings Management: Evidence from Korea

2021 ◽  
Vol 46 (3) ◽  
pp. 43-88
Author(s):  
Yoona Lee ◽  
Tae-Dong Kim ◽  
Chang-Hyun Bae
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Shareholder Activism
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