Share Dividends Research Articles

The impact of dividends on stock prices for the period (2016-2021) (Ashur International Investment Bank) A case study

The research aims to analyze the relationship between dividends and stock prices based on some financial indicators specific to the study sample, namely (earnings per share, dividend payout ratio, market value of the stock to return with growth) and their impact on Ashur International Investment Bank share prices. The research found that there is a direct relationship between undistributed profits and the share of dividends per share, and an inverse relationship between the share of dividends per share and the number of shares traded. The research recommended the need to develop trading, clearing and settlement systems using electronic trading systems to raise the efficiency and speed of dealing in securities and increase transparency. And security for dealers, and the introduction of the remote trading service in order to enable brokerage institutions to complete transactions from their offices without the need for the presence of their representatives in the market.

DIVIDEND POLICY AND VALUE OF LISTED NON-FINANCIAL COMPANIES IN NIGERIA: THE MODERATING EFFECT OF INVESTMENT OPPORTUNITY

The relationship between dividend policy (DP) and the value of firms (FV) has been investigated by several researchers in different jurisdictions. However, the findings of these researchers have been always inconsistent. This is due to the other factors that affect this relationship, which include the investment opportunity (IO). This paper is therefore aimed to empirically examine the impact of dividend policy on firms’ value with investment opportunity as moderator. The population of the study consists of 102 listed Non-financial companies. Based on the criterion set by the researcher, a judgmental technique of sampling was used in selecting 30 non-financial companies from the year 2011 to 2020. Tobin’s’ Q (TQ) and Market Price Per share (MPS) are the proxies for firms’ value, while Dividend per share (DPS) dividend payout ratio (DPR) and dividend yield (DY) are the proxies for dividend policy. Investment opportunity (IO) was measured as fixed asset growth. The study also used Firms’ size (FSIZE), Leverage (LEV) and Industry dummy (IND) as control variables. Descriptive statistics, correlation, and Feasible Generalized Least Squares (FGLS) analysis were used. It was found that DP, DPR, and DY are statistically significant to influence TQ. While MPS was only influenced by DP and DY. It was also found that IO did not moderate the relationship between dividend policy and firm value. It is recommended that the management of corporations should put measures in place that will increase revenue and decrease expenses so that regular dividend payments could be maintained.

A Simulation Study on The Simulated Annealing Algorithm in Estimating The Parameters of Generalized Gamma Distribution

The gamma distribution is one of the most widely used statistical distribution in fitting various real life data set in the field of the reliability to fit failure data, because it is sufficiently flexible to deal with decreasing, constant, and increasing failure rates. In this article, the stock investment valuation model has been presented on the assumption of Gamma distribution. The purpose is to analysis profitability of investment in the property development sector in Malaysia based on the investment rate of return on investment. The flow of the investment cash and the accumulation of the share units over the investment period have been presented. it demonstrated the computing of MIRR by the case of a company which experienceed distributing a treasury share dividend, which increases the small portion of investor’s share units instead of receiving the dividend in cash. As the MIRR might exhibit negative values, the Gamma distribution of the transformed MIRR for certain investment periods is developed and the method of moment is applied to estimate the parameters. The study revealed that the transformed MIRR is well fitted with Gamma distribution for four years to eight years investment periods. It is shown that this approach has a better performance return on investment in Malaysia property sector from 2008 to 2018.

ICAR experiential learning programme for undergraduate students -a work based learning methodology

Veterinary profession has a pivotal role in food security and nutrition. Good employers have high expectations from the graduates to meet the demand. Veterinary curriculum should give awareness of entrepreneurship as a key change agent in economic process with maximum emphasis on employability. Indian Council of Agricultural Research introduced Experiential Learning Programme in the under graduate curricula to facilitate professional development by learning through experience. As part of this, Feed Mill Technology (FMT) unit was established at Veterinary College and Research Institute, Namakkal in the year 2009 -10. The impact of the programme was studied. Expost facto research design was adopted, 300 graduates who had undergone experiential learning programme in FMT constituted the sample for the study. Majority (88.67%) of the graduates opined that undergraduate courses had balanced theory and practical syllabus, duration of FMT programme was sufficient (80.67%); theoretical knowledge (55.67%) and practical knowledge (76.67%) gained through FMT programme was adequate, programme was well planned (66.24%), systematic (73.51%), equal opportunity was given (71.80%) and flexible (85.67%). Most (95%) of the graduates recommend FMT programme since it help the students to gain experience in feed formulation and feed mill operation. Three-fourth (77%) of the graduates had utilized the dividend share of FMT programme for educational purpose. Family business, preference to start business and workmanship had significant positive relation with entrepreneurial level. Thus it could be concluded that experiential programme for the under graduate students would help them to prepare and develop the qualities such as leadership, teamwork, problem solving, decision making and competency for meeting need and expectations of the employers/industry.

Analysis of Stock Market Price Prediction of Indian Finance Companies using Artificial Neural Network Approaches

Organizations get their capital by giving portions of stock; these are the units into which partnerships partition their possession. Shares are commonly called stocks. A solitary portion of the stock addresses fragmentary responsibility for enterprise in relation to the absolute number of offers. Preference shares are the shares that promise the holder a fixed dividend, whose payment takes priority over that of the ordinary share dividends. The stock market prediction has attracted much attention from academia as well as business. However, it is a challenging research topic in which many advanced computational methods have been proposed but they have not yet been attained a desirable and reliable performance. In this paper, stock market prediction analysis done specially on Indian finance companies’ market. Analysis accomplished using three approaches Simple RNN, Long Short-Term Memory (LSTM) and Gated Recurrent Unit (GRU).

Interim Share Dividend Distribution in the Indonesia Limited Company Law No. 40 of 2007 in Perspective Utilitarianism Theory and Hierarchy Theory

Based on Article 72 of the Indonesia Limited Company Law, companies are allowed to distribute dividends before the company closes the annual book and the General Meeting of Shareholders (GMS) by giving temporary dividends (interim). In this case, if the company suffers a loss at the closing of the annual book according to the Indonesia Limited Company Law, the shareholders must return the dividends they have received. If the shareholders do not return it, the directors and commissioners must be joint responsibility to cover company losses. Based on these reasons, the researcher examined the useful aspects of the interim dividend arrangement in Article 72 of the Indonesia Limited Company Law based on Jeremy Bentham's Utilitarianism theory and found the form of norms regarding the return of interim dividends in Indonesian legislation using Hans Kallsen's Hierarchy theory. This research is a normative study with a conceptual approach. The results of the study suggest that; Article 72 paragraphs 1 to 4 of the Indonesia Limited Company Law can benefit the public because Bentham places benefits on individual happiness on a materialistic basis and practical social goals that can balance various interests. However, paragraphs 5 and 6 discussing the return of interim dividends that have been distributed, if, at the end of the closing of the book the company suffers a loss, in terms of the principle of benefit, Bentham does not provide benefits because it cannot provide a happiness effect for many people. The form of regulation on the distribution and return of interim share dividends in Indonesia is Statutes and Bylaws (C & B). C & B are a creative dimension in the form of living law or actions taken by the community. In terms of civil law, C & B has the same position as the law but cannot apply to the public.

A stochastic investment model for actuarial use in South Africa

In this paper, we propose a stochastic investment model for actuarial use in South Africa by modelling price inflation rates, share dividends, long-term and short-term interest rates for the period 1960–2018 and inflation-linked bonds for the period 2000–2018. Possible bi-directional relations between the economic series have been considered, the parameters and their confidence intervals have been estimated recursively to examine their stability, and the model validation has been tested. The model is designed to provide long-term forecasts that should find application in long-term modelling for institutions such as pension funds and life insurance companies in South Africa
 Keywords: Stochastic investment models; price inflation; share dividend yields; share dividends; share prices; long-term interest rates; short-term interest rates; inflation-linked bonds; South Africa

PROGRESIFITAS HUKUM PENGEMBALIAN DEVIDEN SAHAM INTERIM PERSEROAN TERBATAS PADA UUPT NO.40 TAHUN 2007

AbstractProgressive law must place the law in a very close position with the law's community or stakeholders. This position is called responsive, progressive law and is always associated with stakeholders' reality and needs to create justice and happiness as law aspired itself. Also, progressive law emphasizes social integration to overcome public moral insularity.Starting from the viewpoint of progressive law, the author looks at the laws and regulations that discuss the return of interim dividends as stated in the Limited Liability Company Law No. 40 of 2007, article 72, article 72 states that companies allow rules related to dividend distribution in a temporary (interim) way. The article is then interpreted as that if the company has positive profits, the company is allowed to distribute dividends before the company closes the book at the end of the year, provided that the board of directors officially announces the distribution with the approval of the GMS that the positive profits obtained by the company before closing the book will come as dividends interim. As a result, the company competes to distribute interim dividends to increase and show its credibility to investors. It was recorded on the Indonesian stock exchange (IDX) that in September 2020, 73 companies distributed interim dividends.However, article 72 paragraph 5 of the Limited Liability Company Law No. 40 of 2007 explains that if after the company distributes interim dividends to shareholders and at the end of the closing of the annual book the company suffers a loss, the shareholders must return the dividends they have received. If the shareholder does not return it, the directors and commissioners are jointly responsible for covering the company's losses.This viewpoint is the basis for finding the location of the value and form of legal progressivity regarding the mechanism of interim share dividends in limited liability companies as stated in UUPT No.40 of 2007 Article 72 using a normative research method with a conceptual approach.

Measurement of the Income Difference of Rural Residents in Peri-Urbanized Areas and Its Influencing Factors: Evidence from Nanhai, Foshan, China

This study supplements research on peri-urbanized areas by introducing a quantitative analysis of rural income inequality, with particular attention being paid to geographical causes. It also contributes a community/village-scale case to the current knowledge of the quantitative analysis of rural income inequality, which is mainly based on the county, municipal and higher levels. A typical peri-urbanized area in the Pearl River Delta—namely, Nanhai District, Foshan City—was considered as an empirical case. Based on 10-year continuous data, from 2007 to 2016, we first analyzed the distribution and spatial autocorrelation between per-capita share dividend income (PCSDI) and per-capita net income (PCNI). Then, we used a Geographically Weighted Regression (GWR) model to explore the strength and direction of the relationship between PCSDI and the five selected driving factors. The results show that, during the study period, the rural income difference of PCSDI in Nanhai generally narrowed, whereas the income difference of PCSDI generally expanded, and the spatial distribution of PCNI was more unequal than that of the PCSDI. The GWR model shows that geo-location (GL) has the strongest impact on PCSDI, followed by the per-capita area of state-owned land (PCASOL); the density of the road coverage (DRC) and the density of the registered population (DRP) have the least effect on PCSDI. Except for the per-capita area of collective constructive land (PCACCL), which is a global variable, the correlation between the four other factors and PCSDI is geographically uneven.

Return on Equity as the Leading Indicator of Dividend Payout Ratio of Jakarta Islamic Index Stocks Listed on the Indonesia Stock Exchange

Dividend policy is a critical and imperative decision because it involves the shareholders interest’s and has a significant impact to company's sustainability. Sartono (2010) states that dividend policy is a decision whether the profits obtained by the company will be distributed to shareholders as dividend or will be held in the form of retained earnings for future investment.Brigham and Gapenski (2006) state that investor’s main purpose when investing their fund is to gain income or return either as dividend yield or as capital gain. On the other side, the company who will share the dividend will be faced with various consideration: the urge to retain some profit for a more promising re-investment, the company funding, company liquidity, shareholder’s characteristic, specific target related to dividend payment ratio, and other factors related to dividend policy.Based on the definition mentioned above, it can be concluded that dividend policy is influenced by two conflicting interests; the shareholders interest with their dividend and the company interest to do re-investment by retaining the profit. Therefore, dividends paid will depend on each company’s considerations.In general, the shareholders wish to have a relatively stable dividend share to minimize the uncertainty of expected investment result and to increase the shareholder’s trust toward the company so that the stock value will rise. The company dividend policy can be reflected by the Dividend Payout Ratio (DPR), which is the profit percentage shared in the form of cash dividend. It means that the size of the DPR, either big or small, will affect the shareholder’s decision and to the contrary it will also affect the company financial condition. Improper decisions will potentially envisage company facing funding difficulties in the future.According to Brigham and Gapenski (2006), the optimum dividend policy is the dividend policy which creating balance between the current dividend and its growth in the future so the company stock price can be maximized.Lintner (1956) argue that the company ability to gain profit is the main indicator of the company ability to pay dividend. So, the profitability is the most determining factor toward dividend. But some other research mention that the companies tend to choose new investment instead of paying high dividend if their condition are great, well-developed and have high profitability.The rapid growth of Islamic Finance become the first-rate consideration of choosing Jakarta Islamic Index stocks as the object research in which this research aimed to improve investor’s understanding related to dividend policy of sharia stocks member of Jakarta Islamic Index.

Speed of Adjustment in Dividend Payout Decisions: A Comparative Analysis of Developed and Developing Countries

The analysis of dividends payout policy has been apopular subject of research since the middle of the 20thcentury. Despite a huge number of investigations thereis no consensus opinion as to the best practices in thefield. Over the years, different hypotheses have been putforward proposing various methodologies. Some workingpapers underline share repurchase as the best approachtowards payout policy [1]. On the other hand, there aresome investigations which emphasize the opposite pointof view: that dividends are more preferable [2]. Anotherexplanation states that there is no qualifiable difference intypes of payout policy [3]. However, the majority of recentworking papers argue that the best approach is to combine share repurchases and dividends [4].Academic investigations into payout policy began withLintner’s working paper [5]. This research includes notonly financial modeling and results based on regression analysis, but also presents information concerningthe preferences of top-management in payout policydecisions. As a result of interviews with top managers,Lintner identified the existence of a target value fordividend payouts. So, managers tried to maintain theshare of net income attributed to dividends instead ofthe value of dividends themselves. Moreover, Lintnerfound that there is a pertinent speed of adjustment1individend policy. This phenomenon is described by thefact that in case of significant net income changes, firmsdo not pay all the dividends targeted at a specific level ofnet income. Companies only adjust the level of dividendsin the direction of the changes. Lintner also providedan explanation of this fact. It was noted that companies’top management was sure that significant changes in dividends can be negatively appraised by the stock market,especially in case of a fall in the value of dividends. So,managers understate the changes in dividends to betterassure that next year’s profit can cover the new dividends. However, next year’s net income also incurs somefluctuations, so it it is necessary to make some adjustments to dividends. As a result the process of dividendadjustment becomes permanent.The investigation of Brav et al. [6] also was devoted to theanalysis of payout policy, and included interviews with alarge number of CFOs. This research confirms the mainresults of Lintner’s work, but with some limitations. Thestudy carefully analyzed the existence of any target level inpayout decisions. The authors found that only 6% of CFOsdo not target dividends at all. However, in contrast toLintner’s work the majority of CFOs (approximately 40%)answer that their key target is dividends per share. Only28% try to target a dividends payout, and 27% of managers target dividends per share growth. This investigationshows that nowadays, targeting dividends per share is amore common practice than targeting payouts. Despite the fact that these results display some differences fromLintner’s one, they do not reject the hypothesis aboutexistence of dividend smoothing.

Pricing sin stocks: Ethical preference vs. risk aversion

We develop an ethical preference-based model that reproduces the average return and volatility spread between sin and non-sin stocks. Our investors do not necessarily boycott sin companies. Rather, they are open to invest in any company while trading off dividends against ethicalness. When dividends and ethicalness are complementary goods and investors are sufficiently risk averse, the model predicts that the dividend share of sin companies exhibits a positive relation with the future return and volatility spreads. An empirical analysis supports the model’s predictions. Taken together, our results point to the importance of ethical preferences for investors’ portfolio choices and asset prices.

ANALISIS KEBIJAKAN DIVIDEN DAN KEMAMPULABAAN TERHADAP NILAI PERUSAHAAN (Studi Kasus pada PT. Tambang Bukit Asam Tbk. dan PT. Timah Tbk.)

Intention of research this is the to know dividend policy relation to company value, to know relation profitability to company value and know dividend policy relation and profitability with in simultaneous to company value. Method of analysis and relation measurement and influence between variable in this research by using correlation coefficient, determinant coefficient and regression coefficient. Research Result this is the (a) Dividend policy with proxy dividend per share have relation and influence significant to company value with proxy stocks market value at PT Timah Tbk by significant level 0,0151. but at PT Tambang Bukit Asam Tbk not haves relation and influence significant by significant level 0.4448, caused by factor external that is unfavourable economy condition. b) Profitability with proxy earning per share have relation and influence significant to company value with proxy stocks market value at PT Timah Tbk by significant level 0,0158 but at PT Tambang Bukit Asam Tbk not haves relation and influence significant by significant level 0.4805 , Caused by factor external like unfavourable economy condition. (c) Last dividend policy with proxy dividend share and profitability with proxy earning per share in simultaneous have relation and influence to company value with proxy stocks market value at PT Timah Tbk by significant level 0,0635, but not have relation and influence significant PT Tambang Bukit Asam Tbk by significant level 0,1341, caused by factor external like unfavourable economy condition.Key word: dividend policy, profitability and company value

Empirical analysis of Dividend Policy of Public and Private Companies in Russia

The ownership structure of large Russian companies is characterized by a high share of state participation, but the relationship of dividend policy with the ownership structure (public or private) is not defned. Statistical analysis of the Russian companies shows that this relationship exists and can be nonlinear. In the course of the regression analysis, the authors tested hypotheses about the existence of a negative relationship between the volume of dividends paid and the share of state participation. We use panel data from nonfnancial companies listed in the Moscow stock exchange from 2008 to 2016, who paid dividends during this period; 150 companies in total. Three specifcations were tested: the frst one uses the dividend payout ratio as a dependent variable; the second — the share of dividends in the free cash flow; the third has a quadratic form — the nonlinear dependence of dividend payout ratio and share of state participation. Control variables were based on life cycle theory. Testing has shown that in the linear form there is no statistically signifcant relationship between the indicators of dividend payouts and the share of state participation. We have shown that the relationship between the dividend payout ratio and the share of government participation is non-linear and has the form of an inverted u-shape parabola. For a low level of state participation the dependence is positive but for a high level of participation, it is negative. This result can be explained in the framework of the agency theory: a positive relationship indicates the use of dividend payouts to resolve the agency conflict; a negative — the concentration of money in the hands of managers due to minority shareholders weakness. Further development of the study may include the addition of institutional constraints to the model, as well as the expansion of the concept of the dividend policy outcome within the framework of the frm’s sustainable development theory.

The corporate saving glut

Since the 2000s, the non-financial corporate sector moved from net borrower to net lender in many advanced economies - what has been labelled the corporate saving glut. Using data on U.S. listed firms, I document that the firms behind this widespread pattern are the largest corporations. The glut is the consequence of a constant profit share, relative to total corporate assets, which is larger than the sum of a decreasing investment share and a small and constant dividend share. In addition, I find no explanation able to empirically account for this pervasive phenomenon: neither deleveraging, nor increased uncertainty, nor increased market power are meaningfully correlated with the emergence of the glut at the firm-level.

Studying the Impact of Exchange Rate Fluctuations on the Stock Returns-an Empirical Study on the Stock Companies Listed in the Damascus Securities Exchange During the Crisis Period

The research studies the impact of the exchange rate fluctuations of the local currency on the share dividends exchanged in the stock market, and stating whether there is a trace of the fluctuations occurring in the exchange rate on the fluctuations reflected on the stock returns in the stock market – during the political and economic crisis in Syria. The descriptive analytical approach was adopted to indicate whether there is any direct or indirect impact of fluctuations in the exchange rate of the pound (Lira) against the dollar on the exchange value of the Damascus Securities Exchange Index. The study community consists of all stock companies listed in Damascus Securities Exchange. It covers the total of 23 listed companies. It relied on the period from 1/7/2011 through 12/31/2013 to study the impact of exchange rate fluctuations on stock returns, where the crisis began on 18/03/2011, but reflections on economic life began to appear in mid-2011 when the severe fluctuations in the exchange rate and returns began as a result of lack of stability and economic siege Syria has been witnessing and the study stretched until the year 2013. The data is a sort of daily observations of each of the dependent and independent variable sending with 381 observations. The study reached the many results some of which include that there is an inverse weak between the Syrian pound exchange rate and Damascus Securities Exchange Index returns. The inefficiency of Damascus Securities Exchange Index on the weak level, where, as we have seen, this index is not subject to normal distribution and it is auto-correlated of the third degree and does not settle at the first level; instead, it settles at the first change.

Preference for dividends and return comovement

Stocks that initiate dividends tend to comove more with other dividend-paying stocks and comove less with non-dividend payers. This is also true for: (a) dividend initiations that are motivated by the exogenous 2003 dividend tax cut; and (b) the cash dividend share class of Citizens Utilities (relative to its stock dividend class). We find that flows to dividend prone (averse) mutual funds increase the comovement among dividend-paying (non-dividend paying) stocks. Overall, the evidence supports the proposition that the trading of pro-dividend (dividend-averse) clienteles induces an extra factor in dividend payers (non-payers), beyond those associated with changes in common factors.

PENGARUH KONDISI KEUANGAN PERUSAHAAN TERHADAP TINGKAT PENGEMBALIAN SAHAM PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DALAM BURSA EFEK INDONESIA

This study aims to determine the effect of variable price book value, price earnings ratio, earnings per share and dividend pay out ratio on stock returns (stock returns) on manufacturing companies listing on the IDX for the 2014-2016 period.
 In this study, researchers used purposive sampling and obtained a sample of 72 samples. From the sample obtained, the writer uses multiple linear regression test to explain the relationship between these variables. The result stated that 18.2% of stock returns (stock returns) were influenced by price book value, price earnings ratio, earnings per share and dividend pay out ratio, the remaining 81.8% was influenced by other variables.
 Partial testing succeeded in proving price book value, earning per share and dividend pay out ratio had a significant effect on stock returns, while price earning ratio did not significantly influence stock returns. While testing simultaneously shows price book value, price earnings ratio, earnings per share and dividend pay out ratio has a significant effect on stock returns. 
 
 Keywords: price book value, earnings per dividend share pay out ratio stock return.

Kekuatan Monitoring Internal Dan Eksternal, Biaya Keagenan Serta Dampaknya Terhadap Kebijakan Deviden

Some of the results of previous studies related to agency costs and dividend policy found any contradictory results, so that the study was designed as a development of previous research that aims to determine how the influence of internal and external monitoring of the agency costs, and how the influence of these variables on dividend policy. Object of the study is a company registered in the Indonesia Stock Exchange in 2011. The sampling method was purposive sampling is included in the list of 45 companies that make up the LQ and does not include financial institutions as well as share dividend. Total sample used 38 companies. The method of analysis is the Partial Least Square (PLS). The results showed internal and external monitoring variables significantly influence agency costs. Internal monitoring variables affect the dividend policy while monitoring external variables and agency costs are not significant.

Effect of Firm Specific and Macroeconomic Variables on Share Price Determination of Commercial Banks in Nepal

This paper examines the effect of firm specific and macro-economic variable on share price determination of commercial banks in Nepal over a period from 2009/10 to 2015/16. Share price (market price and stock return) is dependent variable whereas, firm size, return on assets, earning per share, dividend per share, gross domestic product, interest rate , and inflation rate are independent variables. Data are collected from annual report of the respective banks, NRB website, NEPSE, and SEBON. The study is based on 105 observation from 15 commercial banks of Nepal. The regression models are estimated to test the significant and importance of effect of firm specific and macroeconomic variable on share price determinant of Nepalese commercial banks. The result shows that there is positive correlation between market price of share with firm size, earning per share, return on assets, dividend per share, gross domestic, product, inflation whereas, negatively correlated to interest rate. Similarly, stock return is positively related to firm size, earning per share dividend per share, gross domestic product, and inflation, whereas negatively relate to return on assets, inflation, and interest rate. The result shows that beta coefficient for earning per share, dividend per share, gross domestic product, and inflation on market price of share whereas, negative for firm size, return on assets and interest rate. Likewise, beta coefficient is positive for dividend per share, earning per share, gross domestic product, and interest rate whereas, negative for firm size, return on assets, and inflation.