Dividend policy: A selective review of results from around the world

Booth, Laurence; Zhou, Jun

doi:10.1016/j.gfj.2017.07.002

Cited by 57 publications

(48 citation statements)

References 103 publications

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“…Therefore, a higher return on assets allows companies to prosper shareholders. Some studies show a positive relationship between return on assets and dividend distribution ratio (Oza, 2004;Kang et al, 2010;Booth & Zhou, 2017). Based on the previous studies, the following hypothesis can be structured: H1: Return on assets has a positive effect on the dividend payout ratio.…”

Section: Hypothesis Development Relationship Between Return On Assetsmentioning

confidence: 97%

Analysis of Factors that Influence Dividend Payout Ratio of Coal Companies in Indonesia Stock Exchange

Kusuma

Hartoyo

Sasongko

2018

JDM

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The purpose of this study is to analyze the company' s internal and macroeconomic conditions on the ratio of dividend distribution, as well as knowing the conditions of coal companies on the IDX during the decline in coal prices. The weakening of the global economy has resulted in a decline in various commodity prices, including coal prices. Various studies were conducted to determine the factors that influence the poor condition of sectoral mining indices in these weakening conditions a few years ago. The coal subsector has the largest capitalization in the mining sector. Multiple regression models are used to analyze 55 samples from 11 coal subsector companies. The research period was carried out from 2013 to 2017. The results showed that return on assets, exchange rates, world oil prices had a positive and significant partial effect on the dividend payout ratio of the coal subsector. The implications of the findings are management of coal subsector company needs to pay attention to internal and external factors so that they can distribute dividends regularly. AbstrakTujuan penelitian ini untuk menganalisis kondisi internal perusahaan dan makroekonomi terhadap rasio pembagian dividen, serta mengetahui kondisi perusahaan-perusahaan batubara di BEI selama penurunan harga batubara. Pelemahan ekonomi global mengakibatkan penurunan berbagai harga komoditas, termasuk harga batubara. Berbagai penelitian dilakukan untuk mengetahui faktor yang mempengaruhi kondisi buruk indeks sektoral pertambangan dalam kondisi pelemahan ini beberapa tahun lalu. Subsektor batubara memiliki kapitalisasi terbesar pada sektor pertambangan. Model regresi berganda digunakan untuk menganalisis 55 sampel dari 11 perusahaan subsektor batubara. Periode penelitian dilakukan dari 2013 hingga 2017. Hasil penelitian menunjukkan bahwa return on assets, nilai tukar, harga minyak dunia memiliki pengaruh positif dan signifikan parsial terhadap dividend payout ratio subsektor batubara. Implikasi dari temuan ini adalah bahwa manajemen perlu memperhatikan faktor internal dan eksternal sehingga manajemen dapat membagikan dividen secara rutin.

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Section: Hypothesis Development Relationship Between Return On Assetsmentioning

confidence: 97%

Analysis of Factors that Influence Dividend Payout Ratio of Coal Companies in Indonesia Stock Exchange

Kusuma

Hartoyo

Sasongko

2018

JDM

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“…As investors are also unable to determine the future developments and operation of the company, they prefer to obtain dividends in advance. In addition, some scholars also mention that, under the perfect capital market, a company's dividend policy does not affect their corporate value [20,21]. In contrast, the information content of dividends theory states that a dividend policy is a message which companies send to the investing public, which is directly reflected in the company's stock price [20][21][22][23].…”

Section: Dividend Policymentioning

confidence: 99%

“…Among them, the current financial situation of the enterprise, an influencing factor, can not only intuitively reflect the application of funds by the enterprise, but also can change their dividend policy. In addition, the larger the scale of an enterprise is, the stronger its capital dispatch ability is and, so, it will be inclined to release higher cash dividends [18][19][20]. Business performance also reflects the financial situation of an enterprise.…”

Section: Dividend Policymentioning

confidence: 99%

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Analysis of the Dividend Policy Decision-Making Mechanism of Chinese and Taiwanese Lithium Battery Industries

et al. 2020

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This study mainly focuses on the mechanisms and influencing factors of formulating dividend policies in the Chinese and Taiwanese lithium battery industries. According to the relevant literature, enterprises should consider financial status, project operations, the decision preferences of their executives, and shareholder equity when drawing up dividend policies. This study first uses the Modified Delphi Approach to set up the hierarchy analysis structure, and then use the Fuzzy Analytical Hierarchy Process for the study method. From the empirical results, this study finds that there exist differences between Chinese and Taiwanese lithium battery manufacturing supply chains, in terms of the process and considered factors when making decisions regarding dividend policies. The empirical results of the study show that dividend policies of Chinese lithium battery manufacturers emphasize more on the future growth of enterprises, earnings expectation and retained earnings, investment decisions, enterprise scale, and operating performance and profit whereas Taiwanese lithium battery manufacturers focus more on information asymmetry.

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“…According to the theory of signal transmission, the asymmetry is obvious between listed companies and investors [1], and investors are eager to acquire the development prospects of listed company by the management [2]. The firm may smooth its dividend or adopt a more flexible dividend payout depending on the strength of the information asymmetry and the structure of the financial market [3]. A change of the dividend-payout ratio not only can signal a variation in the expected net-revenue, but also can affect capital expansion via its retention [4].…”

Section: Introductionmentioning

confidence: 99%

The Motivation and Identification of Listed Companies with Large Stock Dividends

Zhou¹,

Liu²

2019

Proceedings of the 2019 International Conference on Modeling, Simulation, Optimization and Numerical Techniques (SMONT 2019)

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It is of great significance to reduce the blindness and the losses for investors to invest in listed companies with large stock dividends. Based on the characteristics of investors and listed companies in Chinese stock market, the motives to implement large stock dividends policy of listed companies can be summarized by the importance from high to low: signal transmission, additional issuance, low-priced stock preference and equity expansion. An index system for selecting large stock dividends is presented. According to the calculation results of analytic network process (ANP), the importance of the indices from high to low is: the new investment projects, the return on net assets, the net profit growth rate, the retained earnings per share, private equity, net cash flow per share, share price, total share capital, turnover rate and the ratio of circulating stock. The case study of listed companies indicates that the listed companies with a score greater than 0.44 are most likely to carry out large stock dividends policy in the future.

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Dividend policy: A selective review of results from around the world

Cited by 57 publications

References 103 publications

Analysis of Factors that Influence Dividend Payout Ratio of Coal Companies in Indonesia Stock Exchange

Analysis of Factors that Influence Dividend Payout Ratio of Coal Companies in Indonesia Stock Exchange

Analysis of the Dividend Policy Decision-Making Mechanism of Chinese and Taiwanese Lithium Battery Industries

The Motivation and Identification of Listed Companies with Large Stock Dividends

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