DETERMINANTS OF DIVIDEND POLICY – THE CASE OF FINANCIAL INSTITUTIONS OF THE REPUBLIC OF SERBIA

This study examined the factors that determine dividend policy of quoted manufacturing firms in Nigeria. The general purpose is to examine factors that affect dividend policy of the quoted firms. After exhaustive literature review, cross sectional data was sourced from financial statement of twenty quoted manufacturing firms. Dividend payout rate was proxy for dividend policy while growth opportunities, liquidity, management efficiency, profit level, cost of capital, company size and debt equity ratio were proxy for independent variables. The study applied the Pooled Ordinary Least Square (OLS), fixed effect, and random effect regression models using the e-view statistical package. Findings reveal that growth opportunities, profit level, management efficiency and debt equity ratio have negative effect on dividend payout ratio while liquidity, cost of capital and company size have positive effect on dividend payout ratio of the manufacturing firms. We conclude that liquidity cost of capital and company size significantly determine dividend policy while growth opportunities, management efficiency, profit level and debt equity ratio have no significant effect on dividend policy. The study recommends among others, that managers/consultants should carefully examine the economic factors within a firm’s operating environment when carrying out the functions of developing or designing dividend policy for the firm.

In many rapidly growing economies and emerging markets like Ethiopia, the insurance companies are expected to play a crucial role. The dividend decision is one of the critical financial managementdecisions for firms. Dividend decision is also among the widely addressed and controversial issue in field of finance. The inconclusiveness of dividend theories and empirical studies on the relationship between firm’s profitability and dividend payout decisions is one of the most debatable topics inresearches. Hence, the objective of this study is to examine the relationship between dividend policy and Ethiopianprivate insurance company’s profitability and to contribute to the ongoing debate. To achieve the objective of this study, secondary data were collected from the Audited annual financial statements of 8 private insurance companies in Ethiopia, from year 2006-2015. The study used purposive sampling technique to collect the necessary data. Descriptive statistics and Pearson correlation matrix were used for data analysis. Paneldata andPooled OLS regression model were also employed for empirical testing. Return on Asset (ROA) used as a measurement of insurance company’s profitability (dependent variable) while dividend payout ratio used as the main explanatory variable. The controlling variables were firm size, tangibility and leverage. The findings of this study indicated that there is positive and significant relationship between profitability and dividend pay-out policy decision of Ethiopian private insurance companies. This result is also consistent with the Bird-in –the hand theory. The result also shows that leverage, size of insurance company and tangibility has relationship with profitability of insurance companies.

Profit or the earnings figure of an entity plays a vibrant role in transmitting information to the decision-makers especially, for the investors. However, if that figure is manipulated, the main objective of the financial reporting becomes valueless. This study investigates the manifestation of earnings management in two selected sectors at the Colombo Stock Exchange and tests the impact of earnings management on dividend policy. The study selected the manufacturing sector and hotel and travel sector companies from 2012 to 2019 as the sample. We employed descriptive statistics, rankings, and panel regression analysis as the main tools of analysis in the study. Dividend policy is measured via dividend yield and dividend payout ratio, while real earnings management approach and total accruals are used as proxies to measure earnings management. In addition, the size of the firm and leverage are used as control variables of the study. The findings reveal that there is no significant impact of earnings management on dividend policy in both sectors. However, the results discovered that the company's preceding year dividend policy is the primary concern to decide the current year dividend policy of the selected sectors. The study becomes original as the first attempt to investigate the impact of earnings management on dividend policy in the Sri Lankan context and compare two vital sectors. The findings assist stakeholders, especially investors and managers, in their decision-making process.

Dividend policy continues to be a much debated research topic ever since the seminal works of John Lintner (1956), and Miller and Modigliani (1961). Among the many answered questions, doubt continues to remain on the specific factors that determine dividend policy and whether dividend policy can be structured dependently or independently. The aim of this study is to investigate the determinants of dividend payout policy on the South Korean firms listed on the South Korean Stock Exchange (KRX). In this study, five variables are considered as potential determinants of dividend payout policy. The study develops five research hypotheses, which are used to represent the main theories of corporate dividend payouts. Fixed effect regression model was applied on a sample of thirty listed companies on South Korean Stock Exchange for the period of four years from 2014 to 2017. The model was chosen to test the relationship between dividend determinants and dividend payout policy. The study hopes to potentially increase knowledge in the area of dividend payout policy with a view to improve prediction and establish a relationship between dividend determinants and dividend payout of South Korean firms.

This study discusses the influence of free cash flow, leverage, growth rate, size of the company, and the profitability of the dividend policy. Data collection is collected in manufacturing companies listed on the Stock Exchange in 2011 - 2013 as many as 11 companies. The independent variables used is free cash flow, leverage, growth rate, size of company, and profitability. The dependent variable used is the dividend policy. The analytical method used is the normality test, multicollinearity, heteroscedasticity test, autokolerasi test, coefficient determination test, F test, t test, and linear regression analysis. The results showed that the F test that free cash flow, leverage, growth rate, size of company, and profitability simultaneously affect the dividend policy. T test results that the company's growth and profitability partially affect the dividend policy while free cash flow, leverage, and the size of the company partially no effect on dividend policy. Keywords : dividend policy, free cash flow, leverage, growth rate, size of company, and profitability.

The purpose of this study was to investigate the effect of dividend payout on financial performance of selected companies listed on the NSE, Kenya. The study was guided by the following specific objectives: Establish the effect of dividend payout rate on financial performance, determine the effect of dividend per share on financial performance, examine the effect of dividend yield on financial performance and determine the moderating effect of company size on financial performance of selected companies listed on Nairobi Securities Exchange. The study used longitudinal research design targeting 57 companies listed on NSE as at 31st December 2020. Purposive sampling technique was used on the target population, whereby 18 least performing companies as at 31st December 2020 were selected. A total of 90 observations were included in the dataset. Secondary data was collected mainly from NSE Handbook 2020-2021 and annual reports of the companies over five years from 2016 to 2020. The analysis involved both descriptive and inferential statistics. An empirical estimation was then carried out involving testing for stationarity of the variables, cointegration and estimating the cointegrating relation. It was expected that the output of this study provided a basis for Board of Directors and managers of companies in Kenya, Investors, Government agencies and regulatory bodies to make an informed decision and develop policies for investments. The study came with findings, made conclusions and appropriate recommendations. Based on the findings, the study concluded that dividend payout rate led to an increase in ROA of selected companies listed on Nairobi’s Securities Exchange. Therefore, dividend payout rate had a positive and significant effect on financial performance of selected companies listed on Nairobi’s Securities Exchange. When companies enhance dividend payout, there is a likelihood of improved financial performance of selected companies listed on NSE, Kenya. The study recommended that companies listed at NSE should ensure that the dividend payout rate is aligned with the company’s long-term strategic objectives. For instance, a mature, stable company may prioritize regular dividends to reward shareholders, while a growth-oriented company may reinvest profits for expansion. Furthermore, the study recommends that the government should support companies by ensuring that there are sound decision practices on dividend payout policy for the sustainability of companies. This study should be used by academicians to understand how well management allocates profits between reinvestment and shareholders returns. Dividend payout rate can be used to tell a company’s financial health and examine key financial metrices. Suggestions for further studies to be carried out in the entire East Africa Region to assess the establishment of companies in Kenya, Uganda, Tanzania, Burundi, and Rwanda, and then compare the results of those listed companies in the region. Also, more studies should be carried out in the future to investigate the effect that dividend policy contain on the expansion of the economy.

Investment is an activity of placing funds in an asset or more to increase current or future income for a certain period. Each investment has different level of risk and return. Dividend policy is a topic that is often discussed in the financial sector. Dividend policy relates to dividend payments by the company, namely in the form of determining the amount of dividends to be distributed in cash and the amount of retained earnings for the benefit of the company's development and operations. The percentage of profit that is distributed as dividends is referred as the Dividend Payout Ratio. So, this research was conducted with the aim of knowing the extent of the influence of certain financial ratios such as Return on Equity (ROE), Debt to Equity Ratio (DER), Current Ratio (CR) on Dividend Policy with Company Size as an Intervening Variable in IDX 30 companies on the Indonesia Stock Exchange 2018-2020. The method of determining the sample is done by purposive sampling method. The data was obtained from the IDX's official website, namely www.idx.co.id and the official website of each company which is secondary data. The results showed that ROE had no effect on company size. DER has an effect on company size. CR has no effect on company size. Company size has no effect on dividend policy. ROE has an effect on dividend policy. DER has no effect on dividend policy. CR has no effect on dividend policy. Company size is not able to be an intervening variable of the relationship between ROE, DER and CR toward dividend policy.

In this study, the company's primary data was taken from financial reports that were registered on the Indonesia Stock Exchange. The descriptive and quantitative methods used in this panel research were a population of 45 companies over 4 years from 2019-2022 and the total sample in this research was 9 companies using purposive sampling techniques. Based on the hypothesis test using the Smart PLS 3.0 application that has been carried out, the results show that company size and managerial ownership have no significant effect on financial performance and the liquidity variable has a significant effect on financial performance. Liquidity does not have a significant effect on dividend policy. Company size and liquidity do not have a significant effect on dividend policy. Financial Performance has a significant influence on Dividend Policy through Dividend Policy. Financial Performance has a significant positive effect on Dividend Policy through Dividend Policy. Company Size has an insignificant effect on Divide nd Policy through Financial Performance. Company size has no significant effect on Dividend Policy through Financial Performance. Company size has no significant effect on Dividend Policy through Financial Performance.

This article examines the contribution of firm size as a determinant of firm performance. The novelty of the research is to develop a new model related to the determinants of firm performance, especially the firm size variable. Another novelty in this study is that it is more comprehensive in seeing the effect of investment opportunity set, capital structure, and dividend policy on company performance and dividend policy, as well as company size as a moderating variable. The number of samples is 26 companies with a period of 5 years, 2018-2022. Research hypothesis testing using Structural Equation Model (SEM) based on Partial Least Square (PLS). The results showed that investment opportunity set has a significant effect on dividend policy, capital structure has a significant effect on dividend policy, investment opportunity set has no significant effect on company performance, capital structure has no significant effect on company performance, dividend policy has a significant effect on dividend policy. Dividend policy has a significant effect on firm performance, firm size significantly moderates the effect of investment opportunity set on dividend policy, firm size does not significantly moderate the effect of capital structure on dividend policy, investment opportunity set has a significant effect on firm performance through dividend policy, capital structure has a significant effect on firm performance through dividend policy. Keywords: Investment Opportunity Set, Company Size, Dividend Policy, Company Performance

Impact of Dividend Policy on Stock Price Volatility and Market Value of the Firm: Evidence from Sri Lankan Manufacturing Companies

The impact resulted from the dividend policy of a firm on the volatility of the market value of stocks is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned on the maximization of stock holders’ wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context in case of the market value of the firm while being contrary in case of the share price volatility. Accordingly, the firms’ ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.

Present research examines the relation between the ownership-control discrepancy the major shareholder and dividend policy in Tehran Stock Exchange. This research focuses on the effect of the conflicts of interests between majority shareholders and minority shareholders on firms’ dividend policy, because dividend policy can serve as a replacement for this the conflicts of interests. In this research, Investigation all firms in Tehran Stock Exchange that serves the annual reports for the years 2007 through 2010. In a total the selection 134 firms of different industries. The test of the proposed hypotheses conducted on a panel data. In a total research results show that the influence of the ownership to control ratio of the largest shareholder (OWCONT) on dividend payout rate is significantly positive. Indeed, the more this ratio is high, the more the control is low and payout is high. In contrast, if the largest shareholder has a controlling power that exceeds his/her cash flow right, payout is low. Furthermore, control power is significantly related to the dividend policy.

Aims: With investment choices serving as a moderator, this research examines the impact of capital structure, profitability, company size, and dividend policy on firm value. Study Design: This quantitative study employs purposive sampling to examine the financial data of 85 Indonesian property and real estate companies listed on the Indonesia Stock Exchange from 2019 to 2023. Place and Duration of Study: The research population comprised 85 property and real estate firms on the Indonesia Stock Exchange from 2019 to 2023. Methodology: A purposive sample of 32 firms yielded 131 data points over five years. Data analysis was conducted using SPSS, MRA analysis, and conventional assumption tests. Results: The findings indicate that capital structure and profitability positively influence firm value. Dividend policy appears to have no impact on firm value, while company size exhibits a negative relationship. Investment decisions strengthen the association between capital structure, profitability, and dividend policy with firm value, but weaken the link between company size and firm value. Conclusion: This research has theoretical and practical implications. Theoretical implications try to look in more depth at how various factors, such as capital structure, profitability, company size, and dividend policy, as well as investment decisions, jointly influence the value of a property and real estate company. For practical implications for property and real estate company management, the results of this research can be a reference in making decisions regarding capital structure, dividend policy, and investment so as to increase company value.

The Indonesia Stock Exchange (IDX) provides public access to investment. Investors can invest in various companies through publicly listed securities using capital market processes to obtain returns and dividends. To obtain returns and dividends, investors first read the company's financial statements to avoid losses. Aiming to provide empirical evidence, this study analyzed non-financial corporations listed on the IDX between 2020 and 2023 to determine the impact of financial performance on dividend policy, along with company size as a moderating variable. This research employed a quantitative approach and purposive sampling for data selection, which was updated in line with predetermined indicators. Over four years, 147 different companies served as study samples. The study used warpPLS 7.0 as a data analysis tool and combined outer and inner models to evaluate independent variable hypotheses and moderating hypotheses. The study found that liquidity plays a role in dividend policy, profitability plays a role in dividend policy, activity plays a role in dividend policy, and only solvency does not play a role in dividend policy. It was also found that company size does not moderate the relationship between liquidity and dividend policy, but it does moderate the relationship between profitability and dividend policy. Company size also does not moderate the relationship between activity and dividend policy, and does not strengthen the relationship between solvency and dividend policy.

Research has been done with the title Effects of Financial Performance and Company Size on Stock Prices with Dividend Policy as a Moderating Variable (Empirical Study of Basic Industry and Chemical Companies Listed on the Indonesia Stock Exchange for the 2017-2021 period). The researcher took a sample of 20 companies on the Indonesia Stock Exchange. The purpose of this research is to prove the influence of Return on Assets, Current Ratio, Debt to Equity Ratio and Company Size both partially and simultaneously on Stock Prices moderated by Dividend Policy. Data analysis using Panel Data Regression and Moderating Regression Analysis (MRA). The results of the study found that Return on Assets had a significant positive effect on. Current Ratio has a significant negative effect on stock prices. Debt to Equity Ratio has a significant negative effect on stock prices. Company size has a significant positive effect on stock prices. Return On Assets, Current Ratio, Debt to Equity Ratio and Company Size together have a significant positive effect on stock prices. Dividend Policy is able to moderate the effect of Return on Assets on Stock Prices. Dividend Policy is able to moderate the effect of the Current Ratio on Stock Prices. Dividend Policy is able to moderate the effect of the Debt-to-Equity Ratio on Share Prices. Dividend Policy is able to moderate the effect of Company Size on Share Prices in Chemical and Basic Industrial Companies listed on the Indonesia Stock Exchange during the 2017-2021 period.