Payout Ratio Research Articles

Dividend Policy and Ownership Concentration: An Empirical Analysis of the Non-Financial Sector of Pakistan

A concentrated ownership structure is likely to raise the agency problem between large and minority shareholders. This situation allows dividends to work as a tool to fix agency problems. The underlying objective of this study is to check the relationship of ownership concentration with dividend payouts based on the agency theory. The study used data from 56 non-financial firms listed at the Pakistan Stock Exchange (PSX) for nine years from FY2011 to FY2019. The dependent variable is the dividend payout ratio, while ownership concentration as proxied by institutional shareholders and foreign shareholders is the independent variable. Profitability ratio, liquidity ratio, and firm size are the control variables. The Hausman test suggested using the fixed-effect model with Driscoll-Kraay standard error. The findings confirm a positive association between ownership concentration and dividend payout. Institutional and foreign shareholders also posit a strong positive association with the dividend payout ratio. Ownership concentration was found to be significantly affecting Pakistan's non-financial sector regardless of the identity of the concentrated owner. This means that concentration contributes positively to dividend policy to mitigate agency problems. Despite this positive association, it also favors the assumption that large shareholders can influence management, and the impact could be vice versa. It is recommended that businesses with concentrated ownership structures should leverage dividends strategically to address agency problems.

PENGARUH KEPEMILIKAN INSTITUSIONAL DAN KEBIJAKAN DIVIDEN TERHADAP KINERJA PERUSAHAAN DENGAN UMUR PERUSAHAAN SEBAGAI VARIABEL KONTROL PADA PERUSAHAAN SEKTOR MANUFAKTUR YANG TERDAFTAR DI BEI 2019-2021

This study examines the impact of institutional ownership and dividend policy on the financial outcomes of manufacturing businesses trading on the Indonesia Stock Exchange (BEI) from 2019 to 2021, with the impact of company age serving as a control variable. To determine an organization's Return On Assets (ROA), net income is divided by its total assets. The age of a company is calculated by subtracting the current year from the year it was founded; the Institutional Ownership Ratio compares the percentage of shares owned by institutions to the total number of shares outstanding; and the Dividend Payout Ratio (DPR) evaluates dividends paid to shareholders in relation to earnings per share. The 183 companies included in this study were chosen using a stratified random selection technique. This study's results suggest that (1) institutional ownership significantly affects firm performance in a positive way. (2) A dividend plan is excellent for a company's bottom line.

Stock Price Model in Manufacturing Companies

This study aims to analyse and answer the phenomenon of Stock Price (SP) with its determinants; Return On Assets (ROA), Dividend Pay-Out Ratio (DPR), Firm Size (SIZE) and Leverage (DER). The model of this study formula is a theoretical framework to find out the factors that influence SP through DER. First model results; ROA has a significant effect on DER. The same results also apply to SIZE, while DPR has no significant effect on DER. The results of the second model; ROA has a significant effect on SP. The same results also apply to SIZE, but they are negatively correlated. The results are different for DER and DPR, both of which have no significant effect on SP so that DER as an intervening variable does not function to mediate SP. The most dominant or sensitive variable in the two research models occurs in ROA. This research can be used as a guide for capital market players in Indonesia to detect what will happen to SP if the variables in this research experience movement. The value of this research is that the SP model formulation via DER is not appropriate for the manufacturing sector.

Current Ratio, Firm Size, and Return on Equity on Price Earnings Ratio with Dividend Payout Ratio as a Moderation and Firm Characteristic as Control Variable on the MNC 36 Index Period 2017-2021

This study aims to determine the effect of the Current Ratio, Company Size, Return on Equity, and Dividend Payout Ratio on the Price Earnings Ratio on the MNC36 index for the 2017-2021 period. The population and samples used in this study were to use the purposive sampling method which was selected based on specific criteria in accordance with the purpose of the study. Thus, the number of samples in this study was 77 companies. This study used secondary data. The analysis method in this study is multiple linear regression analysis using SPSS 22.0 and Smart PLS 4.0 software. The results of the research obtained are that DPR has a positive and significant effect on the Price Earnings Ratio. In contrast, the Current Ratio, Company Size, and Return on Equity do not have a significant effect on the Price Earnings Ratio.

RETURN ON ASSETS, DEBT TO EQUITY RATIO, TAX AVOIDANCE TERHADAP NILAI PERUSAHAAN

The purpose of this study is to provide empirical evidence about the factors that affect firm value in Indonesia. Those factors are return on assets, debt to equity ratio, current ratio, dividend payout ratio, tax avoidance, and firm size. This study uses a population of non-finance companies that are listed in Indonesia Stock Exchange in the year 2019-2021. The selection sample in this study research was based on purposive sampling technique with a total 237 data samples used. This study uses a multiple regression model. The results of this study indicate that the return on assets has a positive effect on firm value, the greater return on assets can indicate that management is doing a good job thereby increasing firm value. The results of the debt to equity ratio have a positive effect on firm value, a high debt to equity ratio reflects that the company has a long-term investment strategy so that investors will invest in the company so that it will increase the firm value. The results of tax avoidance have a positive effect on firm value, tax avoidance can indicate a manager's personal motivation to manipulate company profits and provide false information to investors so that less tax avoidance can increase firm value. Meanwhile, the current ratio, dividend payout ratio, and firm size have no effect on firm value.

FAKTOR-FAKTOR YANG MEMENGARUHI NILAI PERUSAHAAN NON-KEUANGAN PERUSAHAAN PUBLIK

As of March 2022, there are 783 companies that have conducted an IPO on the Indonesia Stock Exchange. Investors need to analyze the company's value to find out the company's performance. This study was conducted to determine the effect of the dependent variable on Firm Value on the independent variables Return on Assets, Debt to Assets Ratio, Current Ratio, Firm Size, Dividend Payout Ratio, Assets Growth, Assets Management, and Audit Committee. The object of this study is a non-financial company listed on the Indonesian stock exchange from 2019 – 2021 as a population. The sampling method used in this study is purposive sampling and the method for analyzing data used multiple regression method. There were 93 companies and 279 data that passed the criteria. This study states Return on Assets and Debt to Assets Ratio have a positive effect on Firm Value. The current Ratio has a negative effect on firm value. Firm Size, Dividend Payout Ratio, Assets Growth, Assets Management, and Audit Committee have no effect on Firm Value.

Effects of Banks Specific Factors on Dividend Policy: A Case of Commercial Banks of Pakistan

Looking at the dividend situation more attentively makes it seem like a jigsaw puzzle with pieces that don't match. The primary aim of this research is to ascertain the impact of industry-specific variables on the dividend policies of commercial banks that are publicly traded on the Pakistan Stock Exchange. In this context, the dependent variable is dividend policy, as indicated by the dividend payout ratio proxy. The independent variable comprises bank-specific variables, including revenue growth, ownership structure, liquidity, profitability, financial leverage, taxation, and the firm's life cycle. Secondary data spanning the years 2009 to 2019 was meticulously gathered from the annual reports of every bank under consideration. Descriptive statistics (mean, standard deviation, minimum, and maximum value) and inferential statistics techniques (pooled ordinary least squares (OLS) and fixed effect models) are employed to analyze the data. The findings from the fixed effect model indicate that the predictors of ownership structure, liquidity, profitability, leverage, taxation, life cycle, and development account for 84% of the variance in firm dividend policy. These predictors have an effect of 0.84 percent on the dividend policy. The dividend policy is significantly and positively impacted by profitability and financial leverage, based on what the fixed effect model found. Conversely, the life cycle of the company exerts a substantial and adverse influence on dividend payments.

Corporate Governance and Dividend Policy: Evidence from Colombia

We study the impact of the adoption of the corporate governance code denominated Country Code (CC), on the dividend payout ratio of non-financial firms that report to the Superintendency of Companies in Colombia. Using an unbalanced panel data model with a sample of 605 companies from 1997 until 2022, we find that companies that adopted voluntarily the Country Code of corporate governance have paid, on average, higher dividends than those that did not. In addition, the impact of the adoption of the Country Code is amplified by its quality, meaning that higher dividend payments are attached to better Corporate Governance quality. We did not find the impact of the two reforms to the Country Code in 2007 and 2014, which implies that these reforms didn’t help companies to distribute more dividends in Colombia.

Dividend policy and firm liquidity under the tax imputation system in Australia

PurposeThe primary goal of this paper is to investigate the relationship between stock market liquidity and firm dividend policy within a market implementing the tax imputation system. The main aim is to understand how the tax imputation system influences the relationship between firm dividend policy and stock market liquidity within a cross-sectional framework.Design/methodology/approachThis paper investigates the relationship between stock market liquidity and the dividend payout policy under the full tax imputation system in the Australian market. This study uses the Generalized Least Squares regressions with firm- and year-fixed effects.FindingsIn contrast to the negative relationship between the liquidity of common shares and the firms' dividends documented in countries with the double tax system, the study reveals that in Australia, the dividend payout ratios are positively associated with liquidity after controlling for various explanatory variables with both the contemporaneous and lagged time periods. Such a finding is robust to the use of alternative liquidity proxies and to the sub-period tests and remains during the COVID-19 pandemic period.Research limitations/implicationsThe insights derived from this study have significant implications for various stakeholders within the economy. The findings provide regulators with valuable insights to conduct a more holistic assessment of how the tax system impacts the economy, especially concerning the dividend choices of firms. Within the context of a full tax imputation system, investors can make investment decisions without factoring in the taxation impact. Simultaneously, firms can be relieved of concerns about losing investors who prioritize liquidity, particularly when a high dividend payout might not align optimally with their financial strategy.Originality/valueThis study contributes to the literature by extending the literature on the tax clientele effects on dividend policy, providing evidence that the tax imputation system can moderate the impact of liquidity on dividend policy. This study examines the impact of the dividend tax imputation system on the substitution effect between dividends and liquidity.

Pengaruh Return On Asset Dan Dividend Payout Ratio Terhadap Nilai Perusahaan

This research is based on the company's value showing fluctuating conditions in Food and Beverage Sub-Sector companies from 2019 to 2021, as well as the inconsistent influence between the variables Return On Assets and Dividend Payout Ratio on company value from the results of previous research. The purpose of this study was to determine the effect of Return On Asset and Dividend Payout Ratio on Company Value in the Food and Beverage Sub-Sector Listed on the Indonesian Sharia Stock Index for the 2019-2021 period. This research uses a quantitative approach and the data analysis method used is panel data regression analysis. The samples used in this study were as many as 10 companies with a total sample for 3 years, namely 30 samples, using purposive sampling selection techniques. The results of this study show that the Return On Asset variable has a significant effect on the company's value, while the Dividend Payout Ratio variable has no effect on the company's value. This research also shows that together the variables Return On Asset and Dividend Payout Ratio have a significant influence on the value of companies in the Food and Beverage Sub-Sector listed on the Indonesian Sharia Stock Index (ISSI) for the 2019-2021 period with the value of the coefficient of determination for this model is 18.50%.

Analisis Fundamental Perusahaan dan Penilaian Intrinsik Saham sebagai Dasar Keputusan Investasi

Investment is a channel funds for future profits for investors. However, investment also has the risk of loss, so investors must be careful. During the Covid-19 pandemic, the economy had declined, as well as the IHSG. At that time, many companies in various sectors also experienced turmoil and decreased performance, one of which was in the property and real estate sector. Knowing this, it is important for investors to analyze the company's performance and shares before making investment decisions to avoid the risk of loss. The purpose of this study is to determine the performance and condition of the company's shares. The research sample is in the form of financial reports for the 2018-2022 period from 8 property and real estate companies. The analysis in this study uses financial ratios. Current ratio, earnings per share, return on equity, debt to equity ratio, total asset turnover, and dividend payout ratio are used to analyze company fundamentals, while price earning ratio and price to book value are used for intrinsic stock valuation. The results showed that 8 property and real estate companies had good performance. Based on the PER assessment at the end of 2022, many of the company's shares are undervalued, which is worth buying, while the PBV assessment shows that MKPI, DMAS, and PBSA shares are overvalued, which is worth selling.

The Effect of Profitability and Liquidity on Dividend Policy

This study examines the relationship between profitability projected by ROE and liquidity by CR to predict its effect on projected dividend policy with dividend payout ratio (DPR) in food and beverage sector manufacturing companies listed on the stock exchange market. Design and method of analysis, estimation of pandel data regression models with CEM, FEM and REM approaches using the EViews v.12 program. Approach model selection with Chow test, Hausman test, and LM test. The classical assumption test refers to the results of the best panel data regression model selected. The feasibility evaluation of the model was carried out by regression analysis of panel data, and analysis of the coefficient of determination, as well as the t test and F test, at a = 0.05. The results of the study, FEM as a regression model of selected panel data. Evaluation of the feasibility of the model, ROE and CR can predict changes in DPR behavior, although there is an inverse relationship of CR with DPR. The joint contribution of ROE and CR has a high ability to predict and influence the DPR. ROE has a significant negative effect on the DPR. CR has no influence on the DPR. Together, ROE and CR have proven to have a significant positive effect on the DPR.

Analysis of the Influence of Debt to Equity Ratio (DER), Earnings Per Share (EPS), and Dividend Payout Ratio (DPR) on Stock Price with Firm Value as an Intervening Variable (Case Study of LQ45 Stock Index 2015-2021 Period)

This study aims to examine and analyze the effect of Debt Equity Ratio (DER), Earning Per Share (EPS), and Dividend Payout Ratio (DPR) on Stock Prices through Firm Value as a mediating variable for companies listed on the LQ45 Index for the 2015-2021 period. This study used purposive sampling so that the sample in the study was as many as 12 companies listed in the LQ45 Index with a total of 84 observations and data processing in this study using IBM SPSS software. The analytical method used in this study is multiple linear regression analysis and path analysis. The results showed that Earning Per Share (EPS) and Dividend Payout Ratio (DPR) positively and significantly affected firm value. In contrast, the Equity Ratio (DER) had no significant effect on firm value. Debt to Equity Ratio (DER) and Earning Per Share (EPS) positively and significantly affect stock prices. In contrast, the Dividend Payout Ratio (DPR) and Firm Value do not significantly affect stock prices. The Firm Value variable can only mediate the relationship between the Dividend Payout Ratio (DPR) and stock prices. Keywords: Debt to Equity Ratio, Earnings Per Share, Dividend Payout Ratio, Firm Value, and Stock Price.

Analysis the Influence of Liquidity, Firm Size, Dividend Payout Ratio, and Use of Debt on Profitability in LQ 45 Companies

The growth of investment in Indonesia is developing so quickly, as can be proven by the existence curve from the Investment Coordinating Board (BKPM) notes that both investment realization of Foreign Investment (PMA) and Domestic Investment (PMDN) from year to year during the 2015-2019 period continued to increase. This has an impact on the company so as to make intense competition between companies. Every company must develop its competitive advantage in order to survive and advance the company. One of the advantages that companies need to develop is the company's financial performance (Lokollo and Syafruddin, 2013). The ratio analysis used by the company in assessing the company's financial performance is the profitability ratio. Every company has two main goals, namely to maximize profits and maintain liquidity. The purpose of this study is to determine the effect dividend payout ratio, liquidity, firm size and use of debt to profitability (Case study of companies listed on LQ-45). This study wants to analyze the effectdividend payout ratio, liquidity, firm size and use of debt to profitability. An increase in dividend payout indicates the condition and prospects of the company are in good condition, so that it will increase the company's profitability. The higher the liquidity, the more funds the company needs to settle the company's maturing obligations, this of course will reduce the company's profitability. If the level of company size is high, funds are easy to obtain, then the company's operations are smooth and will increase the company's profitability. If the company uses debt as a source of financing to support operations, it will reduce profitability. Keywords: Dividend Payout Ratio, Liquidity, Firm Size, Use of Debt and Profitability.

Dividend Clientele Hypothesis: An Empirical Test in Emerging Nigeria Financial Market

This study tested the dividend clientele hypothesis of Modigliani and Miller using panel data of quoted manufacturing firms in Nigeria. The purpose was to investigate how dividend clientele effect relates to share prices. The estimated regression model found that changes in dividend payout ratio, retained earnings and tax explained 73.9 percent variation in stock prices of the quoted manufacturing firms. Correlation and multiple regressions were used to test the relationship between variables. Cross sectional data were sourced from financial statement and annual reports of the firms. Based on the analysis of fixed and random effect results, fixed effect was used. From the findings, the study concludes that variation in dividend payout ratio, retained earnings and income tax positively affects the stock prices of the quoted manufacturing firms. The study recommends that relevant authorities should ensure dividend policy framework that will positively affects the share prices of the quoted manufacturing firms

THE EFFECT OF MERGERS AND ACQUISITIONS ON THE CAPITAL STRUCTURE OF COMPANIES IN ISLAMIC PERSPECTIVE IN SHARIA BANKING COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2017 – 2021 PERIOD

This study aims to determine the analysis of the effect of mergers and acquisitions of companies on the company's capital structure in an Islamic perspective in Islamic banking companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The population in this study are Islamic banking companies listed on the Indonesia Stock Exchange for the period 2017-2021. Sampling in this study was conducted by purposive sampling method. The criteria for companies that are used as research samples are Islamic banking companies that have gone public and are listed on the Indonesia Stock Exchange during the research period, namely 2017-2021, the availability of information on the financial statements of Islamic banking companies during the research period. Research samples that meet the criteria are taken as many as 3 go public sharia banking companies that are listed on the Indonesia Stock Exchange for the 2017-2021 period. This study uses multiple linear regression analysis to test whether capital structure is influenced by various variables, namely Fixed Asset Ratio (FAR), Growth Sales (GS), Firm Size (SIZE), Return On Equity (ROE), Degree of Financial Leverage (DFL). ), and Dividend Payout Ratio (DPR). The results of this study partially are Fixed Asset Ratio, Firm Size, Return On Equity, and Degree of Financial Leverage have a significant effect on the Debt to Equity Ratio. Meanwhile, Sales Growth and Dividend Payout Ratio have no partial significant effect on the Debt to Equity Ratio. Based on the results of the statistical f test, it shows that the Fixed Asset Ratio, Growth Sales, Firm Size, Return On Equity, Degree of Financial Leverage, and Dividend Payout Ratio variables simultaneously affect the Debt to Equity Ratio in Islamic banking companies that have gone public and are listed on the Stock Exchange. Indonesian Securities in 2017-2021.

Pengaruh Debt Covenant, Company Growth, Invesment Opportunity Set dan Dividend Payout Ratio Terhadap Konservatisme Akuntansi

The purpose of this study is to analyze the effect of Debt Covenant, Company Growth, Investment Opportunity Set and Dividend Payout Ratio on Accounting Conservatism in Finance companies in the banking sub-sector listed on the Indonesia Stock Exchange in the 2016-2021 period. The determination of the sample uses the purposive sampling method, which is a sampling method based on predetermined criteria. The technical data analysis used is descriptive statistical analysis and multiple linear regression analysis using Eviews 12. The result of this study is that the data shows that partially company growth has a positive and significant effect, the investment opportunity set has no negative and significant impact. The debt covenant and dividend payout ratio have no effect and are not significant to accounting conservatism. And simultaneously independent variables are influential and significantly absorb accounting conservatism.

Masihkah Kinerja Keuangan Dianggap Penting Dalam Menentukan Kebijakan Dividen?

Purpose: This study aims to examine the effect of liquidity ratios, activity, leverage, and company size on dividend policy through the financial performance of consumer non-cyclical companies for the 2017-2021 period. Methodology/approach: The sampling technique using purposive sampling method obtained 27 companies as research samples. Data analysis techniques using panel data analysis and path analysis. Findings: The results showed that liquidity (CR) and financial performance (ROA) had a significant negative effect on dividend policy (DPR). Total Asset Turnover has a significant positive effect on dividend policy (DPR). Leverage (DER) and firm size have no significant effect on dividend policy (DPR). Liquidity (CR) and Total Assets Turnover have a significant positive effect on financial performance (ROA). Leverage (DER) and company size have no significant effect on financial performance (ROA). Liquidity (CR), leverage (DER), and company size on dividend policy (DPR) through financial performance (ROA) have no significant effect. Meanwhile, total asset turnover on dividend policy (DPR) through financial performance (ROA) has a significant influence. Practical and Theoretical contribution/Originality: This research is expected to contribute to increasing Dividend Policy (Dividend Payout Ratio), companies must increase company sales activities so that company revenues can be greater than company expenses and companies have positive free cash flow which indicates good financial performance so they can distribute cash dividends. to shareholders. Research Limitation: This research is limited to the use of financial performance intervening variables only and focuses on consumer non-cyclicals subsector companies listed on the IDX in 2017-2021.

Pengaruh Keputusan Investasi Keputusan Pendanaan Dan Kebijakan Dividen Terhadap Nilai Perusahaan Indexs High Dividen 20 Yang Terdaftar Di BEI Pada Tahun 2017-2021

This study aims to examine the effect of investment decisions, funding and dividend policies on firm value. The research was conducted at High Dividend Index (IHD) companies listed on the Indonesia Stock Exchange in 2021. The research method used is descriptive verification. The data collected is secondary data, namely data regarding investment decisions, funding, dividend policies and company values ​​available from 2017 to 2021. Data obtained from the official website of the Indonesia Stock Exchange and the company's official website. The data analysis method used is panel data regression analysis. The results of the study show that investment decisions have no effect on firm value, funding decisions have an effect on firm value, dividend policy has an effect on IHD company value on the IDX in 2017-2021. Then, simultaneously, investment decision variables measured using Total Asset Growth (TAG), funding decision variables measured using the Dept to Equity Ratio (DER) and dividend policy variables measured using the Dividend Payout Ratio (DPR) have an effect on measured company value using Price Book Value (PBV).

Determinants of the dividend payout policy of multinational companies in Bangladesh: Evidence from Dhaka stock exchange

This study tries to establish the important factors influencing the dividend payout policy of the Multinational Companies (MNCs) in Bangladesh in order to assist investors in making the best possible investment decisions. Data for this study was collected from several MNCs listed on the DSE from 2015 to 2021. The relationship between the dependent variable, Dividend Payout Ratio (DPR) and selected independent variables such as Return on Equity (ROE), Liquidity Ratio (LEQR), Leverage Ratio (LEVR), Firm Size (FS), Dividend Payout Ratio of Previous Year (PDPR), Corporate Tax Ratio (CTR) and Capital Adequacy Ratio (CAR) is evaluated using Pearson's correlation and Ordinary Least Squares (OLS) regression models for data analysis and hypothesis testing. The regression analysis results showed a mixed result. The ROE and CTR are significantly related to DPR. Higher ROE and CTR emphasis a higher dividend for stock holders. The FS is significantly negatively related to DPR. Due to the costs associated with paying for the profits of substantial assets, large firms pay lower dividends. Other variables such as LEQR, LEVR, PDPR, CTR and CAR have no significant impact on the DPR. The investors and the concerned authorities can consider ROE, CTR and FS to forecast the future dividend for the MNCs in Bangladesh.