Dividend Distribution Research Articles

Does The Dividend Policy Affect the Stock Price?

Stock prices have long been a fascinating topic for researchers, especially in the financial industry, in this digital era. Stock price fluctuations are caused by a variety of variables, one of which is corporate dividend distribution. Dividends are not only a source of income for investors, but they also serve as a barometer of a company's performance. Companies with a bigger market capitalization are better equipped to pay dividends than companies with a smaller market capitalization, hence this will affect the stock price. With firm size as the moderating variable, the point of this study is to re-examine and affirm the impact of dividend policy on stock prices. In this study, the population is manufacturing enterprises that listed on the Indonesia Stock Exchange in 2020. The sample was determined using a non-probability method and purposive sampling technique, and a total of 72 companies were collected. Path analysis is the analytical technique utilized. The findings of this study show that dividend policy has a positive impact on stock prices, and that firm size has no effect on dividend policy's impact on stock prices. Keywords: dividend policy, stock price, firm size, manufacturing company.

PROCEDURE FOR THE DISTRIBUTION OF DIVIDENDS ACCORDING TO LAW 6380/19

The objective of this paper is to analyze the procedures to carry out the distribution of dividends according to Law 6380/19 of the Republic of Paraguay. The thematic index of the theoretical foundations is divided into three units: UNIT I: Companies- concepts, types of companies, dividends in a company. UNIT II: Taxes on dividends and profits (IDU) – The taxpayer, generating event, scope, birth of the obligation, rates. UNIT III: EDGUR – IDU exclusions, transparent legal structures. The research was carried out with a qualitative approach, because the tax and accounting procedures of dividends and profits were studied according to Law 6380/19 of the Republic of Paraguay. The level of research used is descriptive, the information obtained allowed us to draw conclusions, to understand the scope of the Tax on dividends and profits on the distribution of dividends and profits of taxpayers affected by the Law. To understand the As a result, a questionnaire was proposed with open questions that were structured in a clear and precise way that verified all the points. The scope itself is that of the IDU, where accounting professionals say that the procedures for capitalization are after paying the tax and are distributed in money in kind and that the distribution is made after paying the tax.

Economic Policy Uncertainty and Dividend Policy: Evidence from Commercial Banks in Nepal

We examined the effects of Economic Policy Uncertainty (EPU) on dividend distribution strategy to provide some evidence from developing country prospect. Using a sample of 19 commercial banks for 2009–2020 and the Baker, Bloom, and Davis Index as a proxy of EPU, our key finding demonstrates EPU has no significant direct relationship with the dividend decision of the banking firm. The empirical results reveal that the banking firm in Nepal neither terminate nor initiate dividends during EPU. Further, we found evidence of no precautionary incentive of banking executives as a reaction to policy distress. The dividend payment decision is intuitive for the banking firm in Nepal rather than uncertainty prone by the change in economic policy. If the precautionary motive dominates the firms, banks are supposed to distribute lower cash dividend once there is a more considerable degree of policy uncertainty as a buffer against adversity. Other firm-specific variables, such as corporate earnings, past year dividend, ownership structure, and bank size, affect the dividend decision of banking firms in Nepal. As our results contradict the previous major studies conducted in developed market settings, we suggest that the banking firms should consider, analyze, and adjust their dividend policy based on the opportunities and threats posit by the country's economic policy.

Analisis Keputusan Pembagian Dividen yang Dipengaruhi oleh Investment Opportunity Set, Free Cash Flow, Kebijakan Hutang dan Collateralizable Assets

The background of this study is begins with the high intensity of competition that occurs in go public companies in the Bursa Efek Indonesia. The purpose of this study is to find out the amount of dividends distributed by the company and find out what factors affect the distribution of company dividends. Samples used in this study are obtained 20 companies, the company's sample consists of secondary data collected for data processing. 20 companies are samples that selected from index LQ45 population and constantly listing in index LQ45 since 2018-2020. The process of data processing using statistica tools Eviews-10. The final result of this study are simultaneously IOS, FCF, Leverage, and CA has significant affect to dividend policy; while the variable of leverage has negative affect but IOS, FCF, CA has no affect toward the dividend policy.

Profit reporting and quality analysis of profit to shareholders in past of pandemic era

This paper aims to knows about profit reporting and describes about the quality analysis of profit to shareholders in Pandemic Era. The methods use is quantitative methods. The test results prove that dividend distribution status has a positive relationship to earnings quality (companies that distribute dividends have better earnings quality than companies that do not distribute dividends). Thus, companies that pay dividends are empirically proven to have higher discretionary accruals, higher standard deviations, and absolute error values in projecting accruals to cash flows, and have earnings that are more relevant in predicting future firm value.

The impact of regulator's statement requesting EU insurers to suspend dividend distributions due to the COVID-19 pandemic on share prices

The impact of regulator's statement requesting EU insurers to suspend dividend distributions due to the COVID-19 pandemic on share prices

How do dynamic financing decisions explain the behavior of dividend payout policies?

Abstract The study investigates the factors that influence dividend payout policy in public Pakistani manufacturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so all these firms were excluded from the final dataset. The study discovers that dividend payout in listed Pakistani manufacturing firms is significantly affected by ratio of short-debt, ratio of long-debt, ratio of total-debt, life cycle ratio and cash ratio. Similarly, short term debt ratio, ratio of long-debt and life cycle ratio, increase the dividend payout while cash ratio decreases the dividend distribution ratio for publically traded Pakistani manufacturing companies. The policymakers/financial advisors and decision-makers in listed Pakistani manufacturing firms should take into consideration factors such as debt financing, life cycle ratio, and cash ratio in making their dividend policies.

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).

Pengaruh Rasio Likuiditas dan Pembayaran Deviden Terhadap Profitabilitas Perusahaan

Several countries in the world are experiencing a financial crisis. This incident caused them to need funds from other parties so that the company's operations could run smoothly. Investments can be made between countries as well as organizations such as the IMF or the world bank. To attract the attention of investors to want to invest in a company, a high profitability value is needed in the company. The company's management has an intensive attention to increase the company's profitability. The profitability of the company can be seen from the level of liquidity of the company. In addition, the policy of dividend distribution will reflect the level of company profitability. The purpose of this study was to determine the role of liquidity ratios and dividend payments in the formation of company profitability. The object of research is several companies in East Java. The number of research samples are respondents. The research data obtained will be served by SPSS using multiple linear regression analysis. The results showed that profitability got a significant role from the liquidity ratio partially. dividends also play a significant role in the company's profitability. The company's profitability simultaneously gets a significant role by the liquidity ratio and dividend payments

Correlation between distribution of cash dividends from capital reserves, ultimate controlling shareholders and corporate governance

PurposeThis study aims to discuss whether a new accounting policy can help enterprises withstand operating risks and whether corporate governance can play a supervisory role. Taiwan took the lead worldwide in allowing companies to distribute cash dividends from capital reserves. Compared with traditional cash dividends distributed from retained earnings, this move was aimed at maintaining the stability of cash dividends and helping listed companies address the risks of temporary downturns. However, the distribution of cash dividends from capital reserves may violate the principle of capital maintenance and damage creditors’ equity. The authors sought to examine whether corporate governance could play a supervisory role.Design/methodology/approachThe present study targeted Taiwanese listed companies and cited data from the Taiwan Economic Journal. The study period was from 2011–2019. The authors tested the hypotheses using the least square method.FindingsThe results showed that ultimate controlling shareholders of listed companies can maximize their own interests through ownership arrangements, whereas corporate governance cannot play a supervisory role nor protect creditors’ equity. The findings provide insight on whether, in the development process of corporate governance, appropriate measures are taken to protect creditors’ equity in addition to shareholders’ equity, or achieve a good coordination of interests among all stakeholders.Originality/valueThe ultimate controlling shareholders or directors of a listed company would seek to maximize their own interests, and transfer the operating risks to creditors through the arrangement of dividend policy, thus harming creditors’ equity. However, independent directors cannot play a supervisory role. The authors inferred that corporate governance standards previously focused on the shareholder level or alleviation of the agency problem between controlling shareholders and non-controlling shareholders but ignored creditors’ equity.

TINJAUAN YURIDIS PERSEROAN TERBATAS DAN RAPAT UMUM PEMEGANG SAHAM

One thing that must be ascertained is whether the debt transaction for renting the house is carried out on behalf of the Limited Company (PT) in question or not. The problem you are asking is easier to understand if the context of the answer to that question is that the transaction is carried out on behalf of PT. Taking into account the above, it is likely that the transaction is a transaction relating to the facilities of the members of the Board of Directors and the Board of Commissioners. By taking into account the context on behalf of the PT, the legitimacy of the above transactions does not only cover the formal aspects (complete fulfillment of the provisions of the Articles of Association by the Board of Directors as representatives of the PT and/or corporate approval) but also concerns the material aspects (seeing whether the personal interests of the Board of Directors or Commissioners conflict with interests/intentions and objectives of PT). This is based on the fact that a PT can act if there is an individual who runs it, in this case the Board of Directors as management. In the event that: (i) it turns out that the Board of Directors representing the PT is legitimate from the formal and material aspects, and (ii) it turns out that the circumstances in which each member of the Board of Directors or Commissioners has the right to receive the above facilities have been regulated in the Company Regulations of the PT, and (iii) it turns out that as an entity The PT has not paid the lease debt, then the PT is the one who fully bears the lease debt regardless of whether or not there is a replacement or change in the composition of the members of the Board of Directors or the Board of Commissioners. On the other hand, the PT is not responsible for the actions of the Board of Directors which, although formally on behalf of the PT, have materially proven to be contrary to or outside the interests of PT. Shareholders should not receive the same facilities because they do not function as management (Directors; in Article 79 UUPT) or supervisors (Commissioners; in Article 97 UUPT) of the PT, but as capital holders (investors) who expect profits/benefits from the acquisition. dividend distribution. Even if there is such a transaction through PT and a third party, then the transaction is a special relationship transaction whose fairness assessment tends to be more of a concern according to the applicable accounting standards. If the PT wants to bear indirectly, then the type of transaction should also be a loan to shareholders. If it is a material transaction, then the shareholder in connection with the PT's actions against a third party may also be personally liable in the event that his/her actions regarding the transaction meet one of the criteria (stipulations) of Article 3 Paragraph (2) of Law Number 40 of 2007 concerning Limited Liability Companies. So, transactions that are not on behalf of the PT are definitely the personal responsibility of each member of the Board of Directors or CommissionersKeywords: Limited Liability Company, General Meeting of Shareholders

Pengaruh Likuiditas, Leverage, Pertumbuhan Perusahaan, dan Profitabilitas terhadap Kebijakan Dividen pada Perusahaan Manufaktur Makanan Minuman yang Terdaftar pada Bursa Efek Indonesia Periode 2013-2015


 Dividend distribution is a complex problem in the company due to the difference of interests between shareholders and company management which is often referred to as agency problems. The type of research used is causative research. with the research method in the form of secondary data collection, namely in the form of the company's annual financial statements obtained from the report of the Indonesia Stock Exchange (IDX). The data analysis model used is multiple linear regression analysis. The results of this study indicate that partially Current Ratio (CR) has a positive effect on dividend payout ratio (DPR), partially Debt To Equity Ratio (DER) has a negative effect on dividend payout ratio (DPR), Growth partially has a negative effect on dividend payout ratio (DPR), Return On Assets (ROA) partially has a positive and significant effect on dividend payout ratio (DPR). Current Ratio (CR), Debt to Equity Ratio (DER), Growth, and Return On Assets (ROA) have a positive and significant effect on dividend policy. The magnitude of the coefficient of determination (adjusted R square) is 0.324. This means that 32.4 percent of the DPR variables can be explained by the independent variables in this study, while the remaining 67.6 percent is explained by other variables outside the model.
 Keywords: Liquidity, Leverage, Company Growth, Profitability, and Dividend Policy.

Do the Minority Shareholders of Russian Corporations Need More Protection?

Russian corporate governance has traditionally been viewed as lacking in contrast to that of Western states. The major concern has been controlling shareholders’ expropriation of minority shareholders, especially in the setting of state-owned enterprises (SOEs). However, in recent years, the law and court treatment of minorities’ rights have taken a positive turn, drawing more investors to joint-stock companies (JSC), the Russian equivalent of US corporations. This article examines whether such developments sufficiently protect minority shareholders’ interests in the areas of (1) access to information, (2) controlling shareholder transactions, (3) takeovers by a controlling shareholder, and (4) dividend distributions. This article examines the formation and current state of the law and court practice in these areas, and proposes legislative reform, where appropriate. The article concludes that, although there is room for improvement, the law and the courts generally afford sufficient protections to minority investors, but the key factor that may boost the quality of corporate governance is minority shareholders’ active participation in corporate affairs, especially in the general meetings of shareholders. corporate governance, minority shareholder protection, Russian corporate law

The Impact of Dividend Policies and Financing Strategies on the Speed of Firms’ Capital Structure Adjustment

Based on the framework of the dynamic adjustment model, this paper examines the impact of dividend policies and financing strategies on the speed of capital structure adjustment and explores the relationship between dividend distribution and financing behavior. The empirical results show that if the firm pays less cash dividends, the capital structure adjustment speed is faster, and the dividend distribution behavior conflicts with financing needs. If the firm pays more cash dividends, the capital structure adjustment speed is slower, and the high dividend policy conflicts with market timing financing strategies. In a word, the behavior of dividend distribution has a significant impact on the speed of capital structure adjustment, and the conflict between dividend distribution and financing strategy affects the speed of capital structure adjustment. This paper provides a new perspective for optimizing capital structure, regulating dividend distribution, and evaluating the rationality of financing behavior.

P/B Ratio to Stock Price and Correlation Analysis of Other Financial Indicators

In recent years, the stock market of Mongolia has become more active than ever with increased number of IPOs and SPOs and addition of number of new products in the market. With the objectives to determine and estimate the relations between P/B ratio to stock rates and other financial indicators. We have conducted the research and analyzed the 2007-2020 trading reports, the dividends distribution, and the financial reports of 42 companies with active trading lists on the Mongolian Stock Exchange identified as I and II classification stocks. We have selected the indicators such as, the size of company, dividend payout ratio, return on assets, return on equity, earnings per share, growth of earnings after taxes to be identified as other financial indicators and we have finalized the estimation. According to the results of regressive analysis, based on 565 monitoring data of 42 companies, the indicators such as, return on assets, return on equity, earnings per share have shown direct correlation to the stock rates; however, other indicators have shown no correlation at all. Thus, further studies on the non-financial factors that have impacts on P/B ratio of stock rates have to be done thoroughly by researchers and analysts.

The Influence of the Organizational Life Cycle on the Violation of Financial Covenants

Purpose – To investigate how the stages of the organizational life cycle influence the probability of violation of financial covenants. Theoretical framework – Companies in different stages of the organizational life cycle present different incentives when assuming a position regarding profitability, investment, dividend distribution, the evolution of sales, indebtedness, strategic planning, information disclosure, and earnings quality, and these factors are directly related with the inclusion and violation of financial covenants in debt contracts. Methodology – We used 1,328 observations of 197 non-financial Brazilian companies listed on the B3 in the period from 2010 to 2018. The accounting data were collected from the Economatica database and the financial covenant information was obtained from analyzing more than 2,400 company footnotes. To analyze the results, we used logistic regressions with year-controlled data. Findings – The results highlight that companies in the maturity stage present a lower probability of violating some limit stipulated in the financial covenants in their debt contracts than companies in the other stages, that is, introduction, growth, turbulence, or decline. Practical & social implications of research – In regulatory terms, the results presented further reinforce the need to revise CPC 26 (R1), making it obligatory to disclose the limits of restrictive clauses in explanatory notes for corporations. Originality/value – These results extend the literature by presenting evidence that it is not only the turbulence and decline phases that cause operational risks that can culminate in an increased probability of violation of financial covenants, but also the initial introduction and growth phases of companies.   Keywords – financial covenants; organizational life cycle stages; violation of covenants.

Finansijske performanse odabranih REIT-a iz S&P 500

Every investor, trader, portfolio manager or analyst tries to evaluate the performance of the selected asset to develop a strategy for investment or trading. There are a variety of analyses that can be used depending on the asset class chosen. Since this paper is about REITs (Real Estate Investment Trusts), two ratios will be calculated: DPU (dividend distribution per unit) and FFO (funds from operations). The objective is to investigate whether these two performance measures produced significantly different results during the COVID19 crisis. The selected assets were chosen to cover most of the asset classes in the real estate industry: 1. Public Storage: PSA, 2. Host Hotels & Resorts: HST, 3. Healthpeak Properties: Peak, 4. AIMCO: AIV. It can be concluded that REITs as an asset class generally offer steady returns, however, some sectors are more affected than others during the crisis. It is difficult to estimate which sector will be affected, as crises are always novelties. The best performing asset class was that of the storage sector, which remained stable and positive throughout the entire period, paying higher dividends than the other asset classes.

Dividend distribution and ownership and control structure: an investigation of Brazilian companies

Dividend distribution and ownership and control structure: an investigation of Brazilian companies

Reforma poreske politike za održivi privredni rast u Srbiji

In the last two decades, the Serbian economy posted an average growth rate of 3.8 percent, which was above the average growth rate in the EU, Central and Eastern Europe (CEE) 1 and the Western Balkans 2 . Together with sharp decline in population, this has led to some economic convergence in terms of the GDP per capita, although the gap to the EU and CEE countries remains significant (57 and 42 percent respectively). To achieve full economic convergence with the European countries, Serbian economy needs to post long run growth rates of 4-6 percent per year, in a sustainable manner, which primarily refers to a more fair distribution of growth dividend (reduction of economic inequality) and limiting negative environmental footprint. In this sense, the reform of tax policy can make a contribution to the sustainable growth of the Serbian economy, through: i) a slight reduction in the overall tax burden, primarily through a significant cut in labour taxes, which may be financed by means of broadening the environmental taxes base, increase in consumption taxes and reducing unproductive public expenditures, ii) moderately increasing the progressivity of the personal income tax, recurring property tax and inheritance tax, and iii) broadening the environmental taxes base (with the focus on energy and pollution taxes) and introducing the tax incentives for households to switch to green energy sources.

Визначальні фактори дивідендної політики на основі використання підходу моделювання за структурними рівняннями: дослідження банківського сектору Бангладеш

One of the most controversial problems of modern corporate finance is the dividend policy, which can be described as a trade-off between the size of retained earnings and the amount of securities issued. When deciding on a dividend policy, firms take several aspects into account. The current study looks at the elements that influence banks’ dividend distribution decisions. A panel dataset of 22 banks listed on the Dhaka Stock Exchange (DSE) from FY 1999 to 2018 was used for the empirical analysis. The results are inferred using structural equation modeling (SEM). The findings show that retained earnings, leverage, and size are important factors in determining dividend payouts, whereas earnings per share, cash flow, sales growth, liquidity, institutional ownership, sponsor ownership, individual ownership, risk, age, relative tax, return on assets, investment opportunity, and retained earnings are insignificant while taking dividend decision. The findings also support the notion that dividend payouts have reduced the agency problem and that management utilizes them as a signaling device. Furthermore, the findings show that the majority of dividend policy theories that are traditionally based on developed markets can be applied to emerging market countries like Bangladesh, because the majority of the characteristics found to be important in determining dividend policies in Bangladesh are consistent with those established in developed economies. This study's findings can be used by financial managers and policymakers to make proper dividend decisions. They can also assist investors in making portfolio selections based on sectoral dividend payment patterns.