Dividend Distribution Policy Research Articles

Does dividend distribution policy disclosure create shareholder value?

Does dividend distribution policy disclosure create shareholder value?

NON-OPERATING PROFITS IN THE BRAZILIAN HIGHER EDUCATION SECTOR: INTERFERENCE IN DIVIDEND POLICY?

The aim of this work is to seek a correlation between non-operating profits and the dividend distribution policy by publicly traded companies in the Brazilian education sector through their respective payouts. Publicly traded companies listed on the B3 education sector were selected and analyzed with the other companies listed on the B3 and among them. The time period covered was from January 2, 2017 to December 31, 2020. The variables studied were: payout and non-operating gross profit, in addition to yield and share price variation. The results of this study, by showing that publicly traded companies in the educational sector have higher non-operating profits than other companies listed on B3, can be justified by asset sales, given the mergers and acquisitions in the sector. Furthermore, this realignment could also justify the intra-sector analysis, where the payout of these companies was lower in those where the non-operating profit was higher. These results, in addition to expressing the rejection of null hypotheses, show how similar private higher education companies have become to other publicly traded companies registered at B3 in terms of payout, yield and share price variation. This may show that university autonomy also meant the commodification of education.

The importance of financial ratios in determining profit distribution policies for a sample of Iraqi banks

This study aims primarily to demonstrate the importance of four types of financial ratios, namely profitability ratios, turnover rates, activity cost ratios, and financial leverage ratios, as well as to explain their impact on cash dividend distribution policies for a sample of Iraqi banks traded on the Iraqi Stock Exchange for the period (2010 - 2017). The number of banks was chosen from the Iraq Stock Exchange (13 banks), and the data for the aforementioned time period was taken according to the bulletins and financial statements issued by the official website of the market. After conducting statistical analysis of the data using the statistical package program (SPSS), where the sample size used was (104) observations, and the number of independent variables was (9), which represent the financial ratios, it was found that there is a significant impact of these financial ratios on determining profit distribution policies, and the study recommended to the specialists In the financial field, using these ratios and focusing on them in the financial analysis aspect.

Mandating a dividend distribution policy disclosure over fixed dividend policy: a shareholder value perspective

ABSTRACT Shareholders may never be able to perfectly assess the optimal dividends paid by the firm. While fixing a certain dividend percentage by regulators, is one way to ensure shareholders’ dividend rights, mandating a dividend distribution policy (DDP) could be a unique alternative. This study examines the stock market reaction to a regulation that mandated a set of Indian firms to disclose their DDP. Using an event study coupled with Regression discontinuity design, we find that shareholders appreciate the value of the firms affected by the regulation by 1.15% on average, which is roughly 2–2.5% higher than firms unaffected by the regulation. This suggests that mandating information disclosure on dividend payouts can alleviate issues related to shareholders’ right for dividends without affecting firms’ investment decisions. Also, retained earnings play a price-differentiating role in dividend-paying and non-dividend paying firms.

Content Analysis of Dividend Distribution Policy of Indian Listed Companies

Content Analysis of Dividend Distribution Policy of Indian Listed Companies

Board composition, ownership structure and dividend policy: Evidence from NSE listed companies in India

Purpose The purpose of the study is to analyse the influence of board composition and ownership structure on the dividend pay-out policy of selected listed Indian companies. Design/methodology/approach The top 30 companies listed on National Stock Exchange were examined for a period of three financial years from 2019 to 2021. Due to the cross-sectional and time-series character of the data, fixed effect panel model is used as the primary analytical approach. Findings The results revealed that there is a significant and positive association between board size and dividend policy. The results confirm that the firms with higher Indian ownership and non-institutional ownership distribute higher levels of dividend. No significant association was found between board independence and dividend decisions of ratios. Finally, it is observed that there is a positive impact of return on assets on dividend policy. Research limitations/implications Future studies can confirm the impact of ownership determinants and board characteristics on dividend distribution policy by taking stock dividends into account and enlarging the sample size of developing market businesses. They can also investigate ownership factors including management ownership and international ownership, in addition to other board attributes like qualification, tenure and age. This will offer a more thorough comprehension of how these variables relate to dividend policy. Practical implications Because they are better able to assess the financial position and make educated judgments, a diverse and independent board of directors may result in more strategic and cautious dividend policies. The dividend policy of a firm is also influenced by its ownership structure and strategic objectives; small or primary shareholders may exert pressure for larger payments. By focusing on long-term strategic goals rather than immediate requirements, managers may guarantee that interests are aligned. The findings of this study offer significant guidance to management and regulators about the dividend policy of publicly listed corporations. Social implications According to agency theory, the link between ownership structure, board composition and dividend policy may be explained by agency conflicts. Independent directors are necessary for the board to make decisions that effectively balance the interests of management and shareholders, particularly when it comes to paying dividends. According to studies, companies with non-executive directors have greater interest alignment and fewer agency issues. In addition, the ownership structure and makeup of the board are important factors in lowering agency conflicts and enhancing corporate governance procedures. Companies may improve their governance procedures and increase value for shareholders by resolving conflicts of interest. Originality/value The research paper contributes to the existing body of knowledge by analysing and uncovering significant and unknown relationship between board composition, ownership structure and dividend policy. The paper explores the relationship between specific ownership structures and dividend policy in context of a developing country where limited research exists and addresses a research question that has not been extensively studied before.

PENGARUH PERTUMBUHAN ASET LABA BERSIH DAN ARUS KAS OPERASI TERHADAP KEBIJAKAN DIVIDEN (STUDI EMPIRIS PADA PERUSAHAAN SEKTOR PERBANKAN DI BURSA EFEK INDONESIA TAHUN 2018-2022)

This study aims to test and obtain empirical evidence regarding the Effect of Asset Growth, Net Profit, and Operating Cash Flow on Dividend Policy. The population in this study are banking sector companies listed on the Indonesia Stock Exchange in 2018-2022. The data used is secondary data using Purposive Sampling sampling techniques. The population used in this study were 45 companies with 13 selected companies with a total sample of 65 data. The analysis technique used in this study is panel data regression. The results of the study show that simultaneously Asset Growth, Net Profit and Operating Cash Flow together affect Dividend Policy. while partially Asset Growth does not affect Dividend Policy where the rise and fall of assets will not affect Dividend Policy, Net Profit has a significant effect on Dividend Policy meaning that net profit can be used as absolute information in predicting dividends that will be received by investors in the current period. While Operating Cash Flow does not have a significant effect on Dividend Policy, this shows that operating cash flow is not the main determining factor in dividend distribution policy.

How do gender diversity and CEO profile impact dividend policy in banking? Evidence from Islamic and conventional banks

PurposeThis paper aims to examine the determinants of the dividend distribution policy in a banking setting.Design/methodology/approachUsing a sample of 48 Islamic banks and 94 conventional banks from 15 Islamic countries over a period spanning from 2012 to 2019, we document the effect of board gender diversity, executive director profile and governance mechanisms on dividend payment decisions. We also analyze the moderating effect of Islamic banks on the relationship between gender diversity and dividend policy.FindingsWe find new evidence on the role of women directors in determining dividend distribution policy and confirm the risk aversion hypothesis, hence contributing to the ongoing debate on gender diversity literature. Our results show that the moderating role of Islamic banks is effective only for small banks.Practical implicationsOur findings have practical implications for shareholders, managers and financial analysts as they suggest rationalizing dividend distribution strategies.Originality/valueOur study contributes to the growing body of knowledge on dividend policy, gender diversity and Islamic banks.

Impact of financial distress on the dividend policy of banks in India: evidence using panel data

The study primarily aims to examine the impact of financial distress on the dividend distribution policy of banks operating in India. Panel data analysis was performed using a static model to investigate the impact of distress on the bank’s dividend policy. The Z-score developed by Altman measures a bank’s financial distress (a high Z-score indicates the absence of financial distress). Data from 31 out of 34 banks operating in India between 2016 and 2020 has been used. The debt/equity ratio is used as the moderator. The sales log is used as the control variable. A linear connection exists between financial distress and dividends. Furthermore, debt/equity ratio significantly moderates the association of financial distress with dividend policy. The findings contribute to formulating a long-term dividend policy by drawing attention to the distressing situation in the banking sector, focusing on ensuring the banks’ financial viability. Thereby, the findings are novel and hold significant worth in improving the current understanding of the subject.

Research on Lifecycle-based Financial Strategy on New Energy Enterprises: Take CATL as an Example

The emergence of energy security issues reflects the current global turmoil and division. The two energy crises and regional conflicts have put the global energy system in a severe winter. Energy security is not only the latest requirement for the high-quality development of countries under the "carbon neutrality" background but also an aspect of overall global progress. This study selects the leading enterprise in the new energy industry, Contemporary Amperex Technology Co., Limited (CATL), as the research object. Based on the life cycle theory and financial strategy theory, the paper analyzes the company's financing, investment, and profit distribution strategies and constructs a financial strategy matrix to study the problems existing in the company's current financial strategy. The research results show that there are issues such as unreasonable financing structure, insignificant investment benefits, and significant fluctuations in dividend distribution policies. Finally, targeted optimization suggestions are proposed, hoping to provide a reference value for peers.

Research on Dividend Distribution Policies of Listed Companies in China's E-commerce Industry-Taking Focus Technology as an Example

Scientific and reasonable dividend distribution policy is of great significance for the future development of the company. By analyzing the dividend distribution of Focus Technology Co., Ltd, this paper evaluates the dividend distribution policy of Focus Technology from the influencing factors of the two major dividend distribution policies, namely, profitability and development stage. In the process of research, it is found that the dividend distribution of listed companies in China has the problems of a single form of dividend distribution and poor stability of payment. In view of these problems, the author puts forward countermeasures such as enriching the dividend payment methods and improving the corporate governance structure. This paper hopes this paper can play a certain role in promoting the research of dividend distribution policies of related companies.

Measuring Factors Affecting Dividend Policy and Value In Non-Cyclical Consumer Companies

Economic growth in non-cyclical consumer industries in 2015–2018 tended to increase, however in 2020 there was a sharp decline in Indonesia's economic growth due to Indonesia being hit by the Covid-19 pandemic so it is deemed necessary to pay close attention to the prospects of non-cyclical consumer companies as measured by company value because company value is a reflection of company performance. The purpose of this research is to analyze and prove empirically that profitability, managerial ownership, leverage affect dividend policy and corporate value of consumer non-cyclicals. This study used a purposive sampling technique with several criteria in order to obtain 8 samples of consumer non-cyclicals companies and the analysis technique used was PLS (Partial Least Square). This study found that the higher the profitability and leverage a company has, the higher its dividend distribution policy will be. Likewise, the higher the profitability, ownership and leverage a company has, the higher the firm value the company has. The implications of this research are expected to be the foundation and information for investors in optimizing investment decisions by identifying the factors that influence firm value.

Dividend Payout Policy in Respect of company Performance: An Overview of Manufacturing Sector of Pakistan

Purpose: The suggestion between dividend distribution policies and the commercial success of Pakistani cement business is explained by the current study.
 Design/Methodology/Approach: Four factors were used to control the relationship between the dividend distribution strategy and business success, taking into account pertinent theories. These factors include the firm's Extent and growth, its debt to equity ratio and its municipal supremacy index. Over the course of six years from 2012 to 2017 panel data was used.
 Findings: The study lays out a route that may direct further investigation into more definitive and useful discoveries. Future research may be examined the potential upshots of tax laws, regulations, occasions, and bonus payout patterns on upshotiveness and payout strategy would likely be of interest to academics and other stakeholder. Future research should take into account additional controlling analysts and industry performs, to see if they can be significant in creating a bonus strategy.
 Implications/Originality/Value: Present-day investigation's discoveries has a number of ramifications and help to simplify the bonus payout strategy's business performs in non-fiscal firms in Pakistan's top manufacturing sectors. Given that pay out-based bonus payout rules increase a firm's upshotiveness, fiscal executives are advised to develop a commitment to these rules and take steps to stabilize their bonus payment rules.

Moderating Effect of Liquidity on Profitability and Investment Opportunity Set toward Dividend Policy

Dividends are profits that are distributed to investors in accordance with the proportion. The dividend distribution policy of a company will affect investors' decisions to invest. The dividend policy taken by the company is inseparable from the profitability, investment opportunity set and also the liquidity of the company itself. This study aims to examine the effect of profitability and investment opportunity set on dividend policy with liquidity as a moderating variable. The population in this study was taken from all manufacturing companies listed on the Indonesia Stock Exchange (IDX) during the 2019-2020 period. This research was conducted using a sample of 90 manufacturing companies listed on the Indonesia Stock Exchange using the 2019 – 2020 annual report. Data analysis used descriptive statistics, research instrument testing used validity tests, reliability tests, and classical assumption tests including normality tests, multicollinearity tests, and heteroscedasticity test. Multiple regression analysis, partial test (T test), and moderation test for hypothesis testing. The results of this study indicate that dividend policy is influenced by profitability and investment opportunity set and liquidity is able to moderate the relationship between these variables.

Fujian Shengnong Development Dividend Distribution Study

Fujian Shengnong Development Dividend Distribution Research Fujian Shengnong Development Co., Ltd. is a leading enterprise in the national agricultural products industry and a leading enterprise in the agricultural products industry, and it is named Shengnong Development under the stock code 002299. Ltd. has formed a series of important characteristics such as high degree of product standardization, good quality of chicken meat, relatively stable delivery assurance ability, and strong responsiveness, etc. Shengong Development Co., Ltd. has developed into a strategic partner of Yum's chicken products, and it is an important source of suppliers to China's food and beverage companies. The effect of dividend distribution policy affects the operation of the whole company, which requires Shengnong Development Co. to make a scientific decision on dividend distribution. This case collects data on dividend distribution of Shengnong Development Co. during the six years of listing from 2016-2021, and analyzes the reasons for Shengnong Development Co.'s implementation of the dividend policy as well as the financial effects.

An Empirical Study on Factors Influencing on Dividend Payout in India with Respect to NIFTY 50 Companies

This article examined the factors influencing the dividend payout of Non financing and non-banking companies listed in NIFTY 50 India. Generating profit is one of the key characteristics of the successful firms. So, when these profits are attained firms distribute profits with their shareholders (investor’s) in the form of dividends. So here we are going to see the various factors which are influencing the dividend payout in India’s NIFTY Fifty. This study covers for the tenure of 5 financial years (2018 - 2023). Various theoretical models have been developed by academicians and researchers to empirical examine the impact of factors on dividend payout ratios of different companies, and it is also suggested that managers should use these models while making decision for dividend payments, Grullon et al. (2002).
 So, in this paper we are going to find the various factors influencing the dividend payout, and we are also going to draw the conclusion by using Descriptive Statistics, Correlation, Simple Regression and Panel Data Analysis. Companies with higher ROE tend to exhibit higher dividend payout ratios, underscoring the role of profitability as a strong driver of dividend distribution policies. Conversely, the Debt-to-Equity Ratio (DE Ratio) consistently demonstrates a negative relationship with DP Ratio, implying that companies with higher debt levels relative to equity tend to have lower dividend payout ratios. This emphasizes the impact of financial leverage on dividend decisions, as firms with substantial debt obligations prioritize debt servicing over dividend payments.

The Influence of Financial Decisions on the Value of the Indonesian Railroad Services Company Persero Bandung

PT. Kereta Api Indonesia on increasing company value during 2019-2021. and (b) to determine the effect of the implementation of the funding policy implemented by the management of PT. Kereta Api Indonesia on increasing company value during 2019-2021. The objects studied in this study are companies engaged in the transportation services sector for Indonesian Railways services. PT. Kereta Api Indonesia is an Indonesian state-owned enterprise that provides rail transportation services. PT services The data source for this research is secondary data. Secondary data is data taken in the form of data that has been processed in the form of reports that have been prepared by competent agencies or institutions in the form of reports, books or written materials related to the topic to be studied. The results of this research, namely the results of this study, can be concluded that: (a) Pricing Earning Share, Debt to Equity Ratio and Dividend Pay Out Ratio have no significant effect on firm value. (b) The hypothesis says that the Pricing Earning Share, Debt to Equity Ratio and Dividend Pay Out Ratio have no significant effect on the value of the rejected company; (c) Variations in book value per share, large capital to guarantee debt and dividend distribution policies do not affect how much the value of PT. Kereta Api Indonesia through Price to Book Value (PBV).

Research on The Dividend Distribution Policy Optimization of Yunnan Baiyao Based on The Financial Strategy Matrix

Dividend distribution policy is an important part of enterprise financial strategy, which has an important impact on the long-term development of enterprises and the interests of investors. Enterprises should adjust the dividend distribution strategy appropriately according to the different economic situation. The article is based on the case studies, Using the analysis method of the financial strategy matrix, Select Yunnan Baiyao Co., Ltd., a leading enterprise in the pharmaceutical industry, as the research object, The financial data of Yunnan Baiyao in different years were calculated from the dimension of capital surplus and shortage and value creation, Further deepening the research on the dividend distribution policy of Yunnan Baiyao, Analyze whether the dividend distribution policy of Yunnan Baiyao matches with the financial strategy matrix, We found the problems such as mismatch of financial strategy matrix in dividend policy of Yunnan Baiyao, single and chaotic dividend distribution mode and lack of stability of dividend distribution policy, And based on the perspective of financial strategy matrix.

Analisis Pengaruh Kebijakan Keuangan Terhadap Profitabilitas dengan Kebijakan Penurunan Tarif PPh Badan Sebagai Variabel Moderasi

This study aims to examine the effect of financial management policies on profitability. Apart from that, the effect of each independent variable on the dependent was tested with a decrease in corporate income tax rates as a moderating variable. The population in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2020. There are 96 samples that meet the following criteria; manufacturing companies whose 2019 and 2020 financial statements are available on the IDX, manufacturing companies that do not suffer losses and manufacturing companies that do not have interest write-off income on debt restructuring. This research was analyzed using Multiple Regression Analysis. The results of this study state that the dividend distribution policy has a positive effect on profitability, an increase in debt has a negative effect on profitability, an increase in investment has a positive effect on profitability, a decrease in corporate income tax rates is not able to moderate the effect of dividend distribution policies on profitability, a decrease in corporate income tax rates can strengthen the effect of funding policy on profitability, lower corporate income tax rates weakened the effect of funding policy on profitability.

Does Ownership Structure Influence Dividend Distribution Policy in India? Evidence Using Panel Data Analysis

This article evaluates the influence of ownership structure (OS) components on dividend distribution policy in India. More precisely, it aims to comprehend the impacts of promoters’ shareholdings (PRMS), institutional investors’ shareholdings (INS) and retail investors’ shareholdings (RIS) on dividends of Indian listed companies. This article uses equity dividend divided by book value (DNW) to determine the dividend distribution policy for the selected panel of 80 listed companies for the period of 5 years (2016–2020). The static as well as dynamic panel data regression models are applied in the study. The static panel data regression results exhibit that none of the three OS explanatory variables (PRMS, INS and RIS) affect significantly the dividend distribution policy of Indian listed companies. Similar results are depicted by the dynamic panel data regression model also, thus ensuring robustness of the results. Hence, this article does not find support for agency theory, signalling theory and clientele effect. The study recommends that investors need not consider the composition of shareholding pattern of a company to have any significant influence on dividends while making their investment-decisions. The findings also add to the increasing studies across the globe evaluating the influence of OS on dividends.