Dividend Smoothing &amp; Implications of Lintner Model–A Study of Indian Consumer Goods Sector using Panel Data

Rane, A.; AnjanaRaju, G.

doi:10.18843/ijms/v5i2(1)/13

Cited by 1 publication

(2 citation statements)

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“…The results were supported by Otieno and Oloo (2013) showed that profitability which includes the earnings after expenses, interest and taxes determined the dividend smoothing of the companies studied. Rane and AnjanaRaju (2018) found robust relationship between the smoothness of a firm's dividends with independent variable profitability and lagged dividend. The decision of a specific speed of change factor relies on potential varieties in net profit after expense.…”

Section: The Regression Model Is As Shown Belowmentioning

confidence: 91%

“…The examination prescribed that if dividend smoothing is energized, it could prompt dividend based management of earning. Rane and AnjanaRaju (2018) Ability database kept by Center for Monitoring Indian Economy (CMIE) was the prime source of information for the examination reason. study finds robust relationship between the smoothness of a firm's dividends with independent variable profitability and lagged dividend.…”

Section: Empirical Reviewmentioning

confidence: 99%

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Influence of Profitability on Dividend Smoothing Among Listed Firms at Nairobi Securities Exchange, Kenya

NYONGESA,

MUSIEGA (Ph.D)

2020

strategicjournals.com

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The objective of this study was to establish the influence of profitability on dividend smoothing among listed firms at Nairobi Securities Exchange, Kenya. The study was guided by irrelevance theory. The study adopted descriptive survey design. The study targeted all firms listed on Nairobi Securities Exchange as of December, 2018. The study utilized purposive sampling technique as it only dealt with firms that had been paying dividends between 2014 and 2018. The study utilized secondary data that was collected from NSE handbook between 2008 and 2018. The study utilized descriptive statistics and inferential statistics. Descriptive statistics entailed mean, standard deviation, maximum, minimum and standard error while inferential statistics comprised of correlation and linear regression analyses. The data was subjected to diagnostic test such as linearity, normality, multi-collinearity, homoscedasticity and auto-correlation to test assumptions of linear regression. The results established that there is significant positive relationship between profitability and dividend smoothing. The findings of this study would be significant to various groups such as capital market authority, academicians and management of listed firms. The study concluded that listed firms that were more profitable were more likely to smooth their dividend. It was concluded that Profitability is vital to the firm's manager as well as the owners and other stakeholders. The study recommended that there is need for firms to increase their profitability so as to achieve dividend smoothing over time. This could be achieved by increasing the rate of return of assets. Management was recommended to utilize their assets in a profitable manner so as to achieve dividend smoothing.

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Section: The Regression Model Is As Shown Belowmentioning

confidence: 91%

Section: Empirical Reviewmentioning

confidence: 99%

Influence of Profitability on Dividend Smoothing Among Listed Firms at Nairobi Securities Exchange, Kenya

NYONGESA,

MUSIEGA (Ph.D)

2020

strategicjournals.com

View full text Add to dashboard Cite

show abstract

Dividend Smoothing & Implications of Lintner Model–A Study of Indian Consumer Goods Sector using Panel Data

Abstract: Dividend smoothing is the strategy used by the managers to target net earnings in the payout ratio as shareholders prefer stable dividend over volatile payments (Lintner 1956

Cited by 1 publication

References 13 publications

Influence of Profitability on Dividend Smoothing Among Listed Firms at Nairobi Securities Exchange, Kenya

Influence of Profitability on Dividend Smoothing Among Listed Firms at Nairobi Securities Exchange, Kenya

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