Dividend payment and financial restatement: US evidence

Bhuiyan, Md. Borhan Uddin; Ahmad, Fawad

doi:10.1108/ijaim-07-2021-0154

Cited by 3 publications

(1 citation statement)

References 97 publications

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“…Companies as actors in the economy are required to be able to compete in an advanced economy. Company management must be able to determine the right strategy for the continuity of a company (Bhuiyan & Ahmad, 2022).…”

Section: Introductionmentioning

confidence: 99%

Comparative Study of Abnormal Return on Dividend Distribution in Companies in the Indonesia Stock Exchange

Yudhistira

Purbawangsa

2023

EJBMR

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The aim of this study is to explain the existence of significant differences in abnormal returns before and after the dividend announcement. This study uses an event study approach. The research locations used are companies that announce their dividends on the IDX for the 2016-2020 period. a sample of issuers from all sectors with representatives of 5 issuers from 9 existing sectors who announced their dividends at the time the event occurred. The analytical technique used in this study is the paired sample t test. Based on the results of the discussion in the previous chapter, the conclusion in this study is that there is a significant difference between abnormal returns before and after dividend announcements.

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Section: Introductionmentioning

confidence: 99%

Comparative Study of Abnormal Return on Dividend Distribution in Companies in the Indonesia Stock Exchange

Yudhistira

Purbawangsa

2023

EJBMR

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CFO co-option and dividend payments: the moderating role of CFO talent

Campa,

Ginesti

2024

IJAIM

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Purpose This study aims to investigate the association between the co-option of the chief financial officer (CFO) and dividend payments, assessing whether the talent of the CFO affects this association. Design/methodology/approach The empirical analyses were based on hand-collected data for 922 firm-year observations from 157 European listed firms, during the period 2013–2019. Empirical models, based on a two-step estimation procedure, involved the use of instrumental variables and the generalised moment method. Findings The results show that CFO co-option is negatively associated with the level of dividend payments. It was also found that the degree of CFO talent moderates the negative association between CFO co-option and dividend payments. Research limitations/implications This investigation responds to the call for literature which examines how chief executive officer (CEO) – CFO relationships influence firms’ policies and outcomes. The study offers novel evidence for the individual-level characteristics of CFOs which are likely to reduce the effectiveness of CEO power and increase monitoring on corporate decisions on dividends. Practical implications The study sheds light on the effect of the interactions between CEOs and CFOs, which are important for investors’ expectations. In this regard, investors may be interested in the CFO profiles which may reduce CEO power over dividend policies. Originality/value Unlike previous research, which focused on CEOs, the authors are the first to shed light on the role of CFOs as key decision makers in influencing the dividend policies in modern corporations.

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Audit committee characteristics and financial restatement incidence in the emerging market

Hasnan¹,

Eskandar²,

Hussain³

et al. 2022

CBSR

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This paper discusses issues concerning audit committee characteristics that lead to the occurrence of financial restatements in Malaysian public listed companies (PLCs). The audit committee characteristics were measured using size, independence, frequency of meetings, audit tenure, gender, expertise, age, ethnicity, legal qualifications, and political connections. The data in this study were extracted from the annual reports of 100 firms that had restated their financial statement between 2006 and 2015, and a total of 200 non-restatement firms were matched and observed as control firms. Using univariate and multivariate statistical analysis, the results evince that there is a significant association between audit committee size and frequency of meetings as well as ethnicity and political connections of the audit committee members and the occurrence of financial restatements in Malaysian PLCs. However, the remaining audit committee characteristics show insignificant association with the occurrence of financial restatements. Consistent with Wan Mohammad, Wasiuzzaman, and Nik Salleh (2016), the results show that larger and more rigorous audit committees can strengthen the monitoring role and consequently reduce the occurrence of financial restatements. In addition, the results evince that Malay members in the audit committee have widespread political connections, which negatively affect the decisions by the audit committee, thereby increasing the occurrence of financial restatements.

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Dividend payment and financial restatement: US evidence

Cited by 3 publications

References 97 publications

Comparative Study of Abnormal Return on Dividend Distribution in Companies in the Indonesia Stock Exchange

Comparative Study of Abnormal Return on Dividend Distribution in Companies in the Indonesia Stock Exchange

CFO co-option and dividend payments: the moderating role of CFO talent

Audit committee characteristics and financial restatement incidence in the emerging market

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