Dividend Distribution Policy Research Articles

Accounting Policies and Dividend Limitation: A European Comparison

Abstract The adoption of IFRS by the EU has raised issues about its economic consequences in terms of, among others, volatility of corporate profits, taxation of profit and distribution of dividends. Indeed, it has brought the interactions between legal rules for dividend distribution and accounting policies back into focus. The EU company and accounting regulations are based on capital maintenance rules that involve limitations on dividend distribution when certain accounting policies are implemented in individual financial statements under local GAAP. However, while a majority of member states permit IFRS for individual financial statements, the EU regulations are silent on this issue. In this article, we outline an in-depth analysis on legal dividend distribution rules interactions with accounting policies in European countries, whether local GAAP or IFRS are applied. We have selected nine cases of potential recognition of unrealised gains in individual financial statements under local GAAP and/or IFRS, some of which are already specified in the EU regulations. For each case, we have analysed the national accounting regulations and the corporate laws. Our analysis reveals that the limitations on dividend distributions recommended by the EU have been most largely implemented in the national regulations, but not in all countries. It also sheds light on potential loopholes in the current European regulation regarding unrealised gains that may be more systematically recognised under IFRS than under local GAAP: unrealised gains arising from the recognition of deferred tax assets and unrealised gains arising from benefit pensions plan. To fill these gaps in the national regulations and to harmonise the legal basis for dividend distribution better within the EU, we suggest including in the European regulation the concept of ‘realised profits’ and thus ‘distributable profits’ as a required basis for dividend distribution. It involves in the first place identifying relevant criteria that may enable disentangling realised and unrealised profits or losses.

The Effect Of Dividend Payments Made In The Tire, Iron-Steel, Pharmaceutical and Chemical and Automotive Sector On The Performance Of The Company In Changing Markets

Bu çalışma, lastik, demir-çelik, ilaç ve kimya ve otomotiv sektörlerinde faaliyet gösteren firmaların yaptıkları temettü ödemelerinin firma performansı üzerindeki etkileri incelemiştir. Bu amaçla 2000-2021 yılları arasında BİST 100’de yer alan lastik, demir-çelik, ilaç ve kimya ve otomotiv sektörlerinde şirketlerin piyasa yavaşlama ve genişlemelerinde uyguladıkları temettü dağıtım politikalarının firma performansı üzerinde anlamlı bir ilişki olup olmadığının saptanması amacıyla analizler yapılmıştır. Çalışmada firma performansı, normalleştirilmiş varlık getiri oranı (ROA), nakit akışlarının getiri oranı, Tobin’s Q, toplam hissedar getirisi, borsa kapanış fiyatı, varlıklardaki büyüme oranı, kümülatif performans ve hisse başına kazanç ile ölçülmüştür. Bu çalışmada, bu temettü ödemeleri ile firma performans değişkenleri arasındaki ilişkileri saptamak için çoklu regresyon analizi yapılmıştır. Bu çalışmanın sonucunda, genel olarak söz konusu piyasaların yavaşladığı dönemlerde yapılan temettü ödemelerinin demir-çelik sektörü hariç olmak üzere diğer sektörlerde firma performansını arttırdığı; piyasaların genişlediği dönemlerde ise yapılan temettü ödemelerini ilaç ve kimya sektörü dışında diğer sektörlerin firma performansını azalttığı saptanmıştır. Bu çalışmanın diğer çalışmalardan farklı olan yönü temettü ödemelerinin firma performansı üzerindeki etkisinin Türkiye'deki lastik, demir-çelik, ilaç ve kimya ve otomotiv sektörleri için inceleyen çalışmaların kısıtlı olmasından kaynaklanmaktadır.

Dividend Distribution Policy and Corporate Response Behavior: Analytical Research on Companies in the Industrial Sector on the Iraq Stock Exchange

This study was designed to investigate the effect of dividend policy on the performance of companies operating in the industrial sector in Iraq. Steady performance can be controlled by using four variables: firm size, firm growth, financial leverage (debt-to-equity ratio), and corporate governance index. The data used in the current study were represented seven years period (2014-2020). The data were analyzed by using descriptive statistics, correlation, OLS regression, Lagrangian multiplier, Haussmann test, constant effects models and random effects. Furthermore, the main results of each objective obtained were followed up through the analysis method adopted. The results of the present study revealed a negative correlation between the dividend policy and profitability. Just as the size of the company, and the leverage came with a negative moral effect.

KÂR PAYI DAĞITIM POLİTİKALARININ FİRMA DEĞERİ ÜZERİNE ETKİSİ : BIST YİYECEK, İÇECEK VE BIST KİMYA,PETROL,PLASTİK ENDEKSLERİ ÜZERİNE BİR UYGULAMA

The aim of this study is to investigate whether the dividend policies of companies in the BIST Food Beverage and BIST Chemical, Petrol and Plastic Indexes have an effect on the firm value. In this study dynamic panel data Two Stage System Generalized Moment Method proposed by Arellano and Bover, Blundell and Bond were used between 2010 and 2020, annual data from companies in the BIST Chemical, Petrol, Plastic, and BIST Food and Beverage indices were used in the study. In this research firm value is dependent variable. Dividend distribution status per share is included independent variable, debt/equity ratio, return on assets and return on equity are included as instrumental variables.It was determined that the dividend distribution policies in the BIST Food and Beverage indexes did not have a significant effect on the firm value. On the other hand, dividend distribution policies in BIST Chemical, Petrol, and Plastic index have a significant and negative effect on firm value. It has been observed that the instrument variables used in the study have a positive and significant relationship on the firm value.Although there are many studies in the literature on this subject, it has been seen that the dividend puzzle is continues. It is thought that this study will contribute to the literature since it has a larger and more up-to-date data set compared to other studies conducted in Turkey, and includes the comparative results of the two indices determined.

PENGARUH KEBIJAKAN DIVIDEN, LEVERAGE, PROFITABILITAS DAN LIKUIDITAS TERHADAP NILAI PERUSAHAAN

The purpose of this reseacrh was to determine the effect of dividend distribution policies that use Dividend Payout Ratio (DPR), leverage used using Debt to Equity Ratio (DER), profitability needed by using Return On Assets (ROA) and Return on Equity (ROE) and measured liquidity by using the Current Ratio hampered the value of the company collected using price to book value (PBV) in mining sector companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017.
 This type of research is causal research. The population in this research are mining companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017. The sampling technique uses purposive sampling technique. From the participation obtained by 41 sectoral companies obtained samples obtained from 10 sectoral companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017, so that the research data developed must be examined 40 observations. Data analysis techniques using multiple linear regression.
 Based on the results of this research indicate that the dividend policy does not affect the value of the company with the level of significance obtained greater than 0.05 (0.391> 0.05). Leverage has a negative and significant effect on firm value with a value of t count -2,034 with a significance level of 0.05. Profitability with the proxy return on assets (ROA) does not affect the value of the company with the level of significance obtained greater than 0.05 (0.438> 0.05). Profitability with the proxy of return on equity (ROE) does not affect the value of the company with the significance level obtained greater than 0.05 (0.431> 0.05). Liquidity does not affect the value of the company with the level of significance obtained greater than 0.05 (0.275> 0.05).

Factors affecting dividend payment policy: Differences between consumer goods and consumer staples in Vietnam

The factors affecting the dividend distribution policy of companies listed on the Ho Chi Minh Stock Exchange are investigated using the signal theory and agency cost theory (HOSE). To generate empirical evidence, the study collects data from publicly traded and dividend-paying consumer companies over a 12-year period (2009-2020). At the same time, in order to better understand the research problem, the study examines the variations in factors affecting the dividend payment policies of two kinds of consumer companies (consumer staples and consumer discretionary). The findings of the FGLS regression analysis demonstrate that the following factors always affect dividend payment policy, consumer services, and consumer goods companies: earnings per share, debt-to-equity ratio, form of cash, and stock dividend payment. Consumer staples and consumer discretionary corporations' dividend policies are influenced by distinct factors. Consumer products companies have a greater dividend payout ratio than that consumer service companies. The findings provide a scientific foundation for consumer service and consumer products companies to implement more appropriate dividend distribution policies and raise funds through the stock market.

Do CEO Duality and Ownership Concentration Impact Dividend Policy in Emerging Markets? The Moderating Effect of Crises Period

Despite developments of recent theoretical and numerous empirical studies on the policies effectively adopted by companies, the dividend distribution policy (DDP) remains largely unexplained. In this regard, the main purpose of the current study is to empirically examine the effects of both CEO duality and ownership concentration on DDP during a crisis period. Furthermore, we test, using an interaction variable, the moderating effect of the crisis period on the association between both the degree of CEO duality and the ownership concentration on the DDP by analyzing panel data on selected listed firms in an emerging economy, namely, Tunisia. Based on a sample made up of 576 firm-year observations over the period 1996–2019, the findings of this research indicate that the crisis period plays an important role in mitigating the positive effect of both CEO duality and ownership concentration on DDP. The findings confirm furthermore that the crisis period on the one hand and both CEO duality and ownership concentration on the other represent two competing forces influencing DDP. Our results also support the agency theory on which DDP depends, among other things, family ownership, board and company size, and ROE.

Corporate Governance , Characteristics on Dividend Policy: Evidence From Indonesia

This research aims to explore the instability of the dividend distribution policy of listed companies on the Indonesian stock exchange. Researchers use several main variables as indicators to measure their impact on dividend policy. The samples used are 75 manufacturing companies. Data analysis technology uses descriptive statistical analysis and E Views 6. 0 as data processing tools. The results of this study show that the audit committee has a negative and insignificant influence on dividend policy. At the same time, independent committees, public interest, company size and profitability have a positive and significant impact on dividend policy.

Pengaruh Kebijakan Dividen, Leverage, Profitabilitas dan Likuiditas Terhadap Nilai Perusahaan

The purpose of this reseacrh was to determine the effect of dividend distribution policies that use Dividend Payout Ratio (DPR), leverage used using Debt to Equity Ratio (DER), profitability needed by using Return On Assets (ROA) and Return on Equity (ROE) and measured liquidity by using the Current Ratio hampered the value of the company collected using price to book value (PBV) in mining sector companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017.This type of research is causal research. The population in this research are mining companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017. The sampling technique uses purposive sampling technique. From the participation obtained by 41 sectoral companies obtained samples obtained from 10 sectoral companies listed on the Indonesia Stock Exchange (IDX) in 2014-2017, so that the research data developed must be examined 40 observations. Data analysis techniques using multiple linear regression. Based on the results of this research indicate that the dividend policy does not affect the value of the company. Leverage has a negative and significant effect on firm value. Profitability with the proxy return on assets (ROA) does not affect the value of the company. Profitability with the proxy of return on equity (ROE) does not affect the value of the company. Liquidity does not affect the value of the company.

The Ownership Structure Influence on the Dividend Distribution Policy: The Case of Listed French Family Firms

The usefulness and justification of corporate dividend distribution policies are among the most controversial topics in financial theory. This research aims to shed light on this issue by studying the case of French listed family firms. These companies have a specific governance structure that influences the dividend distribution policy. We examined the impact of the family ownership structure on dividend distribution policy and present empirical study results for a sample of listed French family companies. We explain the dividend distribution policy through the family shareholding structure and the presence of institutional investors and their possible influence. The theoretical framework is the agency relationship. The results show that family ownership positively affects dividend distribution; however, institutional investors have a negative influence.

PENENTU KEBIJAKAN DIVIDEN PERUSAHAAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

The dividend distribution policy is a difficult financial decision for management. The research objective was to examine the determinants of the Dividend Payout Ratio (DPR) in companies listed on the Indonesian stock exchange. The independent variables used in this study are Free Cash Flow (FCF), Debt Rate (LEVERAGE), Foreign Ownership Level (FOREIGN), Growth Rate (GROWTH), and Company Size (SIZE).The research sample was 62 non-financial companies listed on the Indonesia Stock Exchange using multiple regression analysis. This study is exposed to the problem of classical assumptions, namely data normality and cannot be resolved due to the limitations of the study sample. This study is also affected by the problem of heteroscedasticity so that the hypothesis testing uses weighted least square (WLS).The results showed evidence that FCF, Growth and Size have an effect on dividend payment policies and Leverage and Foreign have no effect on dividend payments. This study shows that investors who expect dividend payments can invest in companies that have a high FCF, large size and low growth, on the other hand, if investors expect a greater investment return, it can be obtained from Capital Gain. This research also shows that agency conflicts related to FCF can be resolved through dividend payments.

Halka Açık Şirketlerde Kar Dağıtım Politikalarını Etkileyen Faktörler Üzerine Bir Araştırma1 (An Research on Factors Affecting Profit Distribution Policies in Public Open Companies)

Purpose – The aim of this study is to determine the policies in the profit distribution policy declaration of the manufacturing companies included in the BIST 100 Index and to examine the factors affecting these policies. Design/methodology/approach – In this study, the most preferred 5 dividend distribution policies are determined by examining the 3-year profit distribution policy declarations of 32 manufacturing companies included in the BIST 100 Index between 2015-2017. Correlation and regression analysis are used to determine whether there is an effect on profit distribution policies of 7 financial factors that are frequently used as a result of literature review. Findings – As a result of the analysis, 5 most preferred policies of 32 companies and 7 factors frequently used in literature were determined. These policies and the influencing factors were determined as follows; On business size policy; the profitability ratio, net sales (ln) ratio, net profit margin and earnings per share ratio are effective on the liquidity-based policy of the enterprise; net profit margin and earnings per share are effective on the policy based on the profitability of the enterprise, net sales (ln) and earnings per share are effective, the debt-based policy is effective on the return on equity and financing ratio, based on new investment plans It was concluded that no determined factors on policy were effective. Discussion – With the globalization, the competitive environment increases and companies form profit distribution policies in order to realize their assets and growth. Companies in Turkey, particularly since 2014 constitute the basis of its financial structure of the Capital Markets Board issued by the dividend policy Dividend Notification. Determining the profit distribution policies and factors affecting the policies of manufacturing enterprises registered in Borsa Istanbul 100 Index is expected to provide useful information to public companies and their stakeholders in formulating profit distribution policies and making decisions about the future of the company.

Analisis Pengaruh Likuiditas, Solvabilitas Dan Profitabilitas Terhadap Kebijakan Dividen (Studi Pada Perusahaan Manufaktur Yang Terdaftar di BEI Yang Masuk Dalam Indeks LQ45 Tahun 2013-2017)

Ely rosalina munthe, program for business administration studies school of social and political sciences, Mulawaran University. Thesis title analyzes liquidity impact, solvency, and profitability against the dividends (listed in BEI in the lQ45 index 2013-2017), is led by Dr. Finnah fourqonite, s. SOS. , M.si and Mr umar hi salim, SE. , M.M as my counselor . Policies have to do with the use of profits that are right for shareholders. Essentially, that profit can be divided as dividends or retained to reinvest. The purpose of this composition is to know and to provide empirical proof of liquidity ratios, solvability and profitability against a strong determination of the amount of dividends Shared with shareholders. The population used in this study is manufacturing companies listed at the Indonesian stock exchange and logged in the lQ45 index from 2013-2017. The method used in sample collection is using tangible sampling, with a total of 7 companies being designated as samples. The analysis that works in this research is regression analysis. The results of this study indicate that liquidity and solvency have no effect on dividend policy, while the profitability variable has a significant influence on dividend policy. The results of the coefficient of determination show that 27.1% of the Dividend Policy is influenced by Liquidity, Solvency and Profitability, while the remaining 72.9% is influenced by other factors. This is important as a consideration of the company's financial management in taking dividend distribution policies and helping investors as information and consideration before investing.

SUPERMAKET DIVIDEND DISTRIBUTION POLICY

This study aims to examine the development of the management of Lumajang Supermarkets Amanah Supermarkets, which was established in 2012 with its own capital and sell shares to the public as long as approximately seven can run well in the midst of business competition and can earn profits or profits stably, so as to divide dividends to shareholders. This research is a qualitative descriptive study. The data was obtained from the Lumajang Shirkah Amanah Self-Service report for the past three years. From the profits obtained, the management makes a policy of profit sharing through the General Meeting of Share Shares (GMS). The provisions include net profit before being distributed to shareholders, issued in advance by 25% for business development, 2.5% for managers, 2, 5% for organizations, 2.5% for infaq/ zakat syirkah, and 1% for shareholder shopping rewards. Dividend distribution policy is influenced by several factors, including corporate liquidity, profitability and is supported by earnings stability.

The Sustainability of Malaysia’s Defined Contribution Pension System: Implementation of Deterministic Linear Programming

This article investigates, under deterministic linear programming model, asset allocation decision and optimal investment strategy for Malaysia’s defined contribution pension (DC) scheme -Employees Provident Fund (EPF). The model requires generation of scenarios and probabilities to represent future assets and liabilities streams. We employed Vector Autoregressive (VAR) model to generate future returns of five asset classes i.e. equity, money market instrument, Malaysia government bond with 1 and 10 years of maturity date and property. Future liabilities factors were derived from two submodels; population and salary. In population model, the future status of the EPF members was determined using a Markov Chain model. Then, the random factors of assets and liabilities were used in the asset liability model (ALM) based on linear programming (LP) and fixed mix (FM) strategy. The results of the research are grouped in two levels. First, we briefly discuss the finding of the random factor model and then we analyse the optimal investment strategy for the EPF. In terms of finding an optimal investment strategy, the FM strategy generated higher expected terminal wealth than the LP strategy. This finding suggests that FM strategy is superior to the LP strategy. In addition, we find that the higher dividend distributed to the members may result in decreasing of the expected terminal wealth of the fund for both strategies. This portrays that dividend distribution policy may affect the financial soundness of the EPF in the long run

Study on Dividend Payment Tendency of Engineering Management Organization

All kinds of engineering management organizations (such as general contracting enterprises, supervision enterprises, real estate development enterprises, construction enterprises and engineering consulting enterprises) have many characteristics such as large number of companies, large investment, tight construction period, high technical content and long return period. A suitable dividend distribution policy has a profound impact on the long-term development of construction companies. In view of the fact that the dividend distribution of listed companies in engineering management organizations has a large number of distribution forms, low payment levels and strong policy arbitrariness, this paper takes A-share listed companies in China’s engineering management organizations from 2008 to 2017 as a research sample, using panel logit. Model, using the accounting firm selected by the listed company as the proxy variable to measure the quality of independent auditing, empirically testing the relationship between the listed company’s cash dividend policy and the company’s audit quality from the perspective of corporate governance, and adding geoeconomic elements to test the independent directors. The impact of the location of the job on the relationship between the two. The research in this paper finds that the tendency of cash dividend payment in engineering management organizations is significantly negatively correlated with whether the listed company hires a well-respected accounting firm in the industry to act as an auditor, and this relationship is manifested in the company’s holding listed company where the independent director is locally employed. More significant.

Tolak Ukur Kebijakan Pembagian Dividen pada Perusahaan Go-Public

Dividends are profit rights granted to shareholders sourced from the ability of the issuer to make a net profit from operating activities. Dividends are usually distributed at the end of the accounting year which is decided from the results of the GMS (General Meeting of Shareholders). The ratio of the dividend payout rate is called the DPR (dividend payout ratio). This ratio shows the percentage of profits paid by companies in the form of dividends with the total profit available to shareholders. The purpose of this research is to find out and analyze the company's benchmarks in determining dividend distribution policy on companies going public. There are several ratios that can influence companies in determining dividend distribution policies. The ratio is the ratio of profitability which is proxied by the value of ROA, leverage is proxied by the value of Current Ratio and the value of the company which is proxied by the value of PER (Price Earning Ratio). This research is a type of quantitative research using secondary data that is the financial statements of go-public companies in banking companies in 2015-2017. Targeted outputs are international journals, proceedings in local scientific meetings and IPR. TKT is at level 2: the basic assumptions and laws that will be used in technology reaches 80%, the study of literature on the basic principles of technology reaches 80% and the formulation of research hypotheses reaches 80%.

Leader’s Social Relationship and the Policy of Dividend Distribution: Study of Tunisian Non-Financial Listed Companies.

In an attempt to examine the influence of the leader's social relation on dividend distribution policy in a context of listed non-financial Tunisian firms, a multiple linear model is constructed in a period stretching between 2001-2014.Thus, our empirical study is based on the estimation of a single model by following the multiple linear regression technique (Panel). Our results of the estimate of our model show a positive effect between the Leader's social relationship and the policy of dividend distribution in a context of the Tunisian non-financial listed companies.

Singular dividend optimization for a linear diffusion model with time-inconsistent preferences

With the advancement of behavioral economics, the use of exponential discounting for decision making in neoclassical economics has been questioned since it cannot provide a realistic way to explain certain decision-making behavior.The purpose of this paper is to investigate strategic decision making on dividend distribution policies of insurance companies when the management adopts a more realistic way for discounting, namely stochastic quasi-hyperbolic discounting. The use of this more realistic way for discounting is motivated by some recent developments in behavioral economics. A game theoretic approach is adopted to establish economic equilibrium results, namely subgame perfect Markov equilibrium strategies. It is shown that (1) under certain mild technical conditions, the barrier strategy with an optimal barrier, which is widely used in the traditional approach to optimal dividend problems, is a perfect Markov equilibrium strategy, (2) the optimal barrier is lower than the barrier of an optimal strategy obtained from the respective time-consistent optimal dividend problem, and (3) the solution based on the barrier strategy does not exist in some situations.

Dividendos, juros sobre capital próprio e níveis de payout: Um estudo investigativo sobre a política de distribuição de dividendos adotada pelas empresas listadas na BM&FBovespa

Este estudo investigou a política de distribuição de dividendos das empresas listadas na Bolsa de Valores de São Paulo entre 2002 e 2013. Assim, procurou identificar se as empresas pagaram (ou não) dividendos; quando distribuíram, se faz por meio de dividendos e/ou Juros sobre Capital Próprio; e, os níveis de payout adotados. Os resultados mostram que a maioria adota o pagamento de 25% do lucro líquido ajustado como dividendos mínimos, possivelmente para garantir participação legal nos lucros das empresas aos administradores. Porém, quando distribuem dividendos, pagam acima deste mínimo, havendo Payout Incremental. Sobre a forma de distribuição, há preferência em adotar apenas os dividendos como forma de remuneração dos investidores ou tê-lo em sua composição. Também foi visto que as companhias evitam mudar a política de distribuição adotada, mantendo a forma de remuneração e o nível de payout.