Payout Ratio Research Articles

CAN DIVIDEND PAYMENTS MITIGATE THE INFLUENCE OF COVID-19 CRISIS ON EARNINGS MANAGEMENT?

This paper examines whether dividend payments mitigate the influence of COVID-19 crisis on earnings management practices in Brazil. For this purpose, we use a sample of 264 Brazilian public firms from 2010 to 2021, applying System Generalized Method of Moments (SYS-GMM) regressions. Our main results indicate that, although firms are more prone to engage in earnings management practices during the COVID-19 period, the dividend payout ratio mitigates this influence on earnings management level. Therefore, we show that dividend payment can act as a substitute corporate governance mechanism in times of crisis, since it can reduce the occurrence of earnings management. Additional analyses also support this view, showing that big levels of dividends play a role in minimizing agency conflicts by reducing the level of earnings management. Hence, we contribute to the literature on dividend policy and earnings management, which calls for research to better understand the influence of dividends on earnings management practices in financial crises periods. Further, we shed light on how firms can use dividend policies as a substitute corporate governance mechanism to maintain or establish its reputation during periods of financial crises, benefiting investors, boards, creditors, financial analysts, and policymakers due the increase on the financial reporting quality.

THE EFFECT OF DIVIDEND POLICY AND COMPANY SIZE ON LEVERAGE (RETAIL COMPANIES LISTED ON THE INDONESIA STOCK EXCHANGE FOR THE 2016-2020 PERIOD)

ABSTRACTThis study aims to examine the effect of dividend policy and firm size on leverage. In companies listed on the Indonesia Stock Exchange. The research population is all financial reports listed on the IDX for the 2016-2020 period. The sample was selected using the the purposive sampling method with sample criteria being companies listed on the Indonesia Stock Exchange for the 2016-2020 period. Companies that have complaate financial statements for the 2016-2020 period and obtained a sample of 6 companies. The data source is the company’s annual financial statementstaken through the official website of the Indonesia Stock Exchange (www.idx.co.id) testing using panel data regression analysis with the SPSS program. Dividend policy is measured by the dividend payout ratio (DPR), while company size is measured by (SIZE). The results showed that the dividend policy variable hed a negative and insingnificant effect on leverage, while firm size had a negative and insingnificant effect on leverage.Keywords: Leverage; Dividend Policy; Company Size.

Effect of Net Profit Margin, Sales Growth, Profitability on Dividens Pay-Out Ratio with Managerial Ownership as Moderation

This study aims to test and analyze the relationship between net profit margin, sales growth,profitabilitytodividendpay-outratiowithmanagerialownershipasamoderating. The source of this study data usessecondarydata fromcompanies availableat SPCapitalIQwithatotalof260 observationsthathavemetthecriteriausedusingpurposivesamplingtechniques. This research shows that net profit margin and profitability have a positive influence on the dividend pay-out ratio. Sales growth has a negative influence on the dividend pay-out ratio. The study also showed that managerial ownership as a moderating variable strengthens the relationship between net profit margin, sales growth and profitability to dividend pay-out ratio.

Corporate Life Cycle, Profitability, Institutional Ownership and Dividend Policy in Companies Listed on the IDX for the 2017-2020 Period

This study to test the influence company Cycle life, profitability, ownership institutional to policy dividends on the company manufacturers listed on the IDX for the 2017-2020 period. Cycle life company classified based on growth sale with four stages cycle life company which are start-up, growth, maturity and decline. Cycle life company be measured with using retained earnings to total equity (RETE), profitability be measured with Return on Assets (ROA), Ownership institutional be measured with percentage ownership institution. The control variable of this study is age company, size company and asset growth. Dependent is Policy dividend be measured with use dividend payout ratio (DPR). Population of this study is companies listed on the Indonesia Stock Exchange except financial sector for the 2017-2020 period. Total population of 569 companies with 2850 data. The sampling technique using purposive sampling and obtained as many as 820 data that sharing dividend. Research results show that RETE has a significant negative effect to Policy dividends, Return on Assets (ROA) has a significant negative effect to Policy dividends, ownership institutional influential positive significant to dividend policy, Age effect positive significant to dividend policy, size has a significant negative effect to dividends policy and asset growth are not influence to dividend policy.

Settlement Of Stock Price Issues With Dividend Payout Ratio And Debt To Asset Ratio As Moderating Variables In The Retail Sub Sector

This study aims to examine the effect of Net Profit Margin (NPM), Quick Margin (QR), and Receivable Turnover Ratio (RT) on stock prices moderated by Dividend Payout Ratio and Debt to Asset Ratio. This study uses the research object of retail sub-sector companies in Southeast Asia for the period 2012-2020. The data collected is secondary data with the documentation method in the form of the company's annual report. In this study, the sampling used nonprobability sampling technique with purposive sampling type, in which there are 10 companies in Southeast Asia that have complete financial statements according to the variables studied so that 72 research samples are obtained. The research method uses descriptive analysis, classical assumption test, measurement with autocorrelation. Multiple regression analysis, moderated regression analysis, adjusted R2. The results of this study are that NPM and RCT have no significant and partial effect on stock prices, while QR has a partial and significant effect on stock prices. The F test shows the results that NPM, QR, and RCT have a simultaneous effect on stock prices. In the results of the DPR MRA test, it can moderate the effect of NPM, QR, and RCT on stock prices, while DAR can only moderate the effect of RCT on stock prices.

The Effect of Bid-Ask Spread, Market Value, Risk of Return, Dividend Payout Ratio, Return on Asset and Company Age on Holding Period in Indonesia

This study aims to determine the effect of the bid-ask spread, market value, risk of return, dividend payout ratio, return on assets, and firm age on the holding period of the LQ45 stock index. The objects of this research are companies listed on LQ45 on the Indonesia Stock Exchange for the 2019-2021 period. The data analysis technique in this study was quantitative analysis expressed in numbers and calculations using statistical methods with the help of E-Views 10 software. This study used a sample of 36 companies taken by the purposive sampling method. The data analysis used is the classical assumption test, multiple linear regression analysis, and hypothesis testing. The results showed that market value and return on assets had a significant positive effect and risk of return had a significant negative effect on the holding period, while the bid-ask spread, dividend payout ratio, and company age had no effect on the holding period. Based on the Adjusted R2 value, there is still 51.26 percent of the holding period variable which is influenced by other variables outside the independent variables of this study.

Does gender diversity in the audit committee influence corporate dividend policy? Evidence from French listed firms

<abstract> <p>The purpose of this paper is to investigate whether the gender diversity of audit committees has a significant impact on the level of a dividend payout ratio using a sample of French firms listed on the Société des Bourses Françaises 120 (SBF 120) index after quota law enactment (from 2012 to 2019). While previous studies examined the effect of board gender diversity on dividend policy, we focus on women representation on audit committees. In fact, women membership in board committees reflects their involvement in corporate governance and decision-making, especially in a context where gender diversity is enforced. Overall, our results are in line with the outcome hypothesis and show a positive effect of female representation in audit committees on corporate dividend payouts. Additionally, we show that the size and independence of audit committees are positively related to the dividend payout ratio. Our findings are robust for alternative measures of dividend payments.</p> </abstract>

The Effect of Profitability, Intangible Asset, and Leverage on Dividend Policy and Firm Value

The increasing population in Indonesia has resulted in the need for consumption of primary goods to be very rapid. In addition, economic development has made competition increasingly fierce in the world of trade, which operates in various sectors, for example in consumer noncyclicals companies. This study aims to examine the effect of profitability, intangible assets, leverage on dividend policy and corporate value of main board index companies in the consumer non-cyclicals sector on the Indonesian stock exchange during the 2017-2021 period. Profitability is measured by return on assets (ROA), intangible assets are measured by the logarithm of the book value of intangible assets (IAS), leverage is measured by the debt to equity ratio (DER), dividend policy is measured by the dividend payout ratio (DPR) and company value is measured by price to book value (PVB). The population of this study is the health sector companies that are on the Indonesia Stock Exchange as many as 57 companies and 26 are taken as samples. The data collection period is from 2017 to 2021, with annual data. This study uses multiple linear regression analysis to test the hypothesis. The results show that profitability and leverage have no significant effect on dividend policy. Meanwhile, intangible assets have a negative and significant effect on dividend policy. Profitability and leverage have no significant effect on firm value. Meanwhile, intangible assets and dividend policy have a positive and significant effect on dividend policy.

Analysis on Regional Guidance Mechanism for Promoting Prevention Based on Combination of Traditional Chinese Medicine and Western Medicine

This research empirically explores the aspects that define the dividend payout results among banks. The aim of this research is calculate the existence of relationship between dividends of banking sectors in Pakistan. This study considers the impact of four variables, namely, earning per share, capital ratio, size and cash flow per share on the dividend payout ratios by using unbalanced panel data set of fifteen listed banks. Secondary data was used under analysis and data was retrieved from the financial statement analysis banking sector listed in the Pakistan Stock Exchange (PSX) published by State bank of Pakistan. Secondary data was tested through E-views software version 9 with the descriptive analysis, unit root test, correlation, Hausman test and regression. Empirical results show that dividend payout policies are positively affected by the earning per share and cash flow but are negatively affected by the capital ratio and size of the banks. The results obtained also indicate that firms pay dividends with the intention of the reducing agency conflicts.

Effect of free cash flow on the profitability of Nepalese commercial banks

This study investigates the impact of free cash flow on the profitability of Nepalese commercial banks. The study analyzes secondary data of 20 commercial banks from 2016/17 to 2020/21, using return on assets and return on equity as dependent variables, and free cash flow, cash flow from investing activities, cash flow from financing activities, dividend payout ratio, current ratio, and bank size as independent variables. The study finds that free cash flow has a positive effect on return on assets and return on equity, while leverage has a negative effect. Cash flow from investing and financing activities has a positive effect on return on assets, and the dividend payout ratio has a positive effect on return on equity. Bank size also has a positive effect on both return on assets and return on equity. However, the current ratio has a negative effect on both return on assets and return on equity. These findings suggest that commercial banks in Nepal can improve their profitability by effectively managing their free cash flow, cash flow from investing and financing activities, dividend payout ratio, and bank size, while minimizing their leverage and current ratio.

Impact on Dividend Payout Analysis between Nepal Bank Limited, Rastriya Banijya Bank Limited and Agricultural Development Bank Limited

This study entitles, “Factors Analysis on Dividend Payout of Nepal Bank Limited, Rastriya Banijya Bank Limited and Agricultural Development Bank Limited” focused on quantities paid are decided on the company's performance analysis of Nepal Bank Limited (NBL), Rastriya Banijya Bank Limited (RBB) and Agricultural Development Bank Limited (ADB) taking three sample banks. This study focused to find the effects of different factors and on its dividend payout taking secondary data from 2012/13 to 2021/22. The study’s finding indicate that larger corporations may afford to pay bigger dividends because of their greater financial strength. Also the profitability ratio, company size, and leverage ratio all have a negative correlation with the dividend payout ratio and as the bank's size grows, the dividend distribution will be reduced and increases in net income have a positive impact on dividend payments, meaning that higher payments will be made when growth is strong.

IMPACT OF DIVIDEND POLICY ON SHAREHOLDER’S WEALTH IN POWER GENERATION AND DISTRIBUTION FIRMS IN PAKISTAN

This article investigates the effect of dividend policy on shareholder wealth inside the energy generation and distribution corporations in Pakistan. The examination is carried out using a pattern of 12 organizations listed on the Pakistan Stock Exchange in the course of 2013-2017. The research employs both descriptive information and panel facts regression analysis to examine the relationship between dividend policy and shareholder wealth. The results endorse that dividend policy has a substantial effect on shareholder wealth in the strong technology and distribution companies in Pakistan. The findings reveal that corporations with an excessive dividend payout ratio generate better returns for their shareholders. Furthermore, the studies additionally examine the impact of other firm-particular elements, along with company size, income consistent with percentage, and rate-to-profits ratio, on shareholder wealth. The outcomes propose that those factors also have a widespread superb effect on shareholder wealth. The study has crucial implications for each investor and companies within the electricity technology and distribution area in Pakistan. The findings recommend that firms ought to adopt a dividend policy that maximizes shareholder wealth. This may be accomplished by way of preserving a high dividend payout ratio and making sure that the company-particular elements that impact shareholder wealth also are well-managed. The research also highlights the significance of understanding the specific characteristics of the power generation and distribution zone in Pakistan while developing a dividend policy. This region is noticeably regulated and challenges government rules, which may impact the financial performance of corporations in this sector. Therefore, firms running on this zone should carefully bear in mind the impact of regulatory and policy adjustments when developing their dividend policy.

Profitability and Liquidity Impact on Dividend Payout Ratio: Evidence from Indonesian Consumer Goods Industry

This study aims to examine the relationship between profitability and liquidity with the dividend payout ratio (DPR) in the Consumer Good Industry on the Indonesia Stock Exchange during the period of 2017-2019. The research employed purposive sampling, resulting in a sample of 45 companies over the three-year period. Using secondary data, the variables were analyzed using SPSS version 25 and tested using partial t-tests. The findings reveal that the DPR during 2017-2019 is positively influenced by the return on equity (ROE) and return on assets (ROA), as well as the current ratio (CR). However, the quick ratio (QR) was found to have no significant impact on the DPR. These results contribute to the understanding of the factors influencing dividend policy in the Consumer Good Industry, providing valuable insights for investors, managers, and policymakers.
 Highlights:
 
 Profitability and Liquidity: Explore the influence of profitability and liquidity on the dividend payout ratio in the Consumer Goods Industry of Indonesia.
 Dividend Payout Ratio: Investigate the relationship between financial performance indicators, such as ROE and ROA, and the distribution of dividends by companies.
 Consumer Goods Industry: Focus on companies operating in the Consumer Goods Industry listed on the Indonesia Stock Exchange and analyze their dividend policies.
 
 Keywords: Profitability, Liquidity, Dividend Payout Ratio, Consumer Goods Industry, Indonesia

Does Financial Information Influence The Behavior of Stock Price? Evidences From Nepali Commercial Banks

Financial information is the document that presents the overall financial health of the organization. This study examines the influence of financial information on stock price behavior of Nepalese commercial banks. Twelve commercial banks are selected as a sample out of total twenty-six commercial banks of Nepal based on operation more than ten years with availability of necessary information. This study utilizes quantitative research approach with causal-comparative research design. Adopting descriptive statistics and multiple regression analysis for data analysis, study found that financial information like net interest margin, net profit margin, dividend payout ratio and capital adequacy ratio have significant positive influence on determining stock price behavior of Nepalese commercial banks. In addition, evidence indicates that financial information is the major influencing factor while determining stock price and investment decision so investors should properly analyze financial information for superior investment decision.

Corporate Finance Practices in Nepal

The objective of the study is to explore the practises of capital budgeting, cost of capital, capital structure , and dividend policy adopted by firms in Nepal and to examine whether the practises differ with respect to various demographic variables like firms size, sector, and leverage. The study follows quantitative approach and descriptive research design. Survey was conducted during the month of July and August, 2020 to a population of 978 Nepalese firms with a response rate of nearly 10.33 per cent. The findings on capital budgeting practises of corporate Nepal show a strong preference for non-discounted methods like break even analysis and profitability. The majority of respondents use a WACC as an appropriate discount rate when evaluating any potential investment decision. The scenario analysis and sensitivity analysis of the most widely used techniques for project risk analysis. The Nepalese firms calculate their cost of equity based on regulatory requirement followed by investors requirements. Debt from financial institutions is the most preferred source of finance almost 80% of Nepalese firms have target dividend payout ratio and majority of firms focus on absolute level of dividend than dividend changes.

FACTORS INFLUENCING DIVIDEND PAYOUT POLICY: EVIDENCE FROM LISTED NON-FINANCIAL FIRMS OF THE ZAGREB STOCK EXCHANGE

This paper aims to assess the impact of financial factors on the dividend payout ratio, and the purpose is to research factors affecting dividend payout in less developed markets and compare them with the results of previous studies. We use the global research platform Screener.co, and the financial statements available on Zagreb Stock Exchange to collect the data. Our sample consists of companies listed on the Zagreb Stock Exchange that paid dividends at least once in the last three years. In the model applied, we covered five years (dividends paid from 2017 to 2021, based on financial fundamentals preceding dividends from 2016 to 2020) using hierarchical linear regression analysis that consists of four explanatory variables: return on equity, return on assets, financial leverage, and free cash flow to revenue. First, the research found high fluctuations in the dividend payout ratio and return on equity variability. Secondly, we found no statistically significant causality between the dividend payout ratio and explanatory variables. The results suggest that other long-term non-financial factors, such as the investors’ expectations, history of paying dividends, and large cash reserves backed by high retained earnings, may have a decisive impact on the dividend payout ratio rather than recent financial factors.

DETERMINANTS OF DIVIDEND POLICY OF LISTED OIL AND GAS FIRMS IN NIGERIA

The largest companies worldwide face the challenge of differentiating the amount to pay as a dividend and the amount to retain for internal use. This study, therefore, aims to examine the main determinants of dividend policies of oil and gas firms in Nigeria. The primary study objective was to study how determinants like earnings, liquidity, state of the economy, and total assets of the companies significantly impact the dividend payout ratio of listed oil and gas companies in Nigeria. Ten listed oil and gas companies were selected, and secondary data were gathered from their financial statements from 2010 to 2020. The fixed effect and the random effect regression analysis estimated the data, while other post-estimation techniques, such as the Hausman test, were used to select between the fixed and random effect panel regression that was the best fit for the study. The Hausman test selected the fixed effect regression. Therefore, findings from the fixed effect regression showed that earnings and the state of the economy were positively significant in impacting the dividend payout ratio. Total assets were negatively significant, while liquidity was insignificant, affecting the dividend payout ratio. The study recommended, among others, that Nigerian oil and gas firms should build and manage their total assets effectively and efficiently, as this would determine and influence their dividend policy decisions.

Analisis Nilai Wajar Saham Dengan Metode Price Earning Ratio

Stock investment analysis can be done by fundamental analysis and technical analysis. This study aims to analyse fair value (intrinsic value) of stock by using one of the fundamental technique, i.e. price earning ratio (PER). This study uses four fundamentals indicator such as return on equity (ROE), earning per share (EPS), dividend per share (DPS), and dividend payout ratio (DPR). Research sample are determined by purposive sampling technique. This research analyze two go-public companies that listed in Indonesia Stock Exchange, i.e. PT Adhi Karya (Persero) Tbk and PT Wijaya Karya (Persero) Tbk. Those companies are listed in Indonesia Stock Exchange with stock code ADHI and WIKA.
 The results of this study are both PT Adhi Karya (Persero) Tbk and PT Wijaya Karya (Persero) Tbk stock’s are in overvalued condition, so the investment decision that can be taken are sell those stock.

THE INFLUENCE OF GREEN INTELLECTUAL CAPITAL, DIVIDEND POLICY, PROFITABILITY RATIO AND ACTIVITY RATIO ON COMPANY VALUE

Abstractk
 This study aims to determine the effect of green intellectual capital, dividend policy, profitability ratios and activity ratios on firm value. This study takes a sample of companies listed on the Indonesia Stock Exchange which are included in the Sri-KEHATI Index list for the 2016-2020 period. The sample in this study a sample of 9 companies with a total of 45 observations of observation data for 5 years. A total of 5 outlier data have been removed from the analysis so that the total observations are 40 observational data. The data analysis method used is panel data regression with the help of the Eviews 9 program. The results show that partially green intellectual capital, dividend payout ratio and return on equity have no effect on firm value.

Pengaruh Growth, Cash Ratio, Struktur Kepemilikan Manajerial dan Profitabilitas terhadap Deviden Payout Ratio (DPR) pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia (BEI)

Abstract
 This study was aimed at determining the effect of growth, cash ratio, managerial ownership structure and profitability on the dividend payout ratio in mining companies listed on the Indonesian stock exchange. The type of data which used in this study was quantitative data with secondary data. The data analysis technique used in this study was multiple regression analysis with the Classical Assumption Test, the Coefficient of Determination Test, and the T Test. The population of this study was 49 mining companies listed in Indonesian stock exchange with 13 companies qualified in 5 years, so the sample analised was 65 samples. This study used purposive sampling in determining the sample. The results show that Growth has a significant negative effect on the dividend payout ratio. While cash ratio, managerial ownership structure, profitability have a significant positive effect on the dividend payout ratio in mining companies listed on the Indonesian stock exchange.
 Keywords : Deviden Payout Ratio, Growth, Cash Ratio, Managerial Ownership Structure And Profitabilitas.