Earnings quality and corporate payout policy linkages: An Indian context

Pathak, Rajesh; Ranajee,

doi:10.1016/j.najef.2018.10.003

Cited by 15 publications

(13 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The value of the partial significance test resulted the dividend policy's a coefficient value of -0.141 which means that there is a negative effect. This confirms the study result from Sulastri et al (2016); Faradi & Supriyanto (2019); and Pathak & Ranajee (2020). According to Sulastri et al (2016); the changes in the dividend rate have a negative effect on earnings quality, which means that the higher the dividend fluctuation, the lower the earnings quality.…”

Section: Template Of Jurnal Economiasupporting

confidence: 85%

“…If the percentage of dividends to share price is high but it is not in accordance with the condition of the financial statements, then there is an indication of poor earnings quality. This has been also confirmed by Pathak & Ranajee (2020) saying that the dividend policy will further reduce the quality of earnings if the company manipulates earnings.…”

Section: Template Of Jurnal Economiamentioning

confidence: 66%

“…This is an implication of the dividend return rate on stock prices (dividend yield) from several years of company reports. The hypothesis of this study refers to Sulastri et al (2016); Pathak & Ranajee (2020); and Faradi & Supriyanto (2019).…”

Section: Template Of Jurnal Economiamentioning

confidence: 88%

See 2 more Smart Citations

The Determinant of Earning Quality Using State Ownership as Moderating Variable on Companies in Malaysia

Hidayah

Sholih

Agustina

et al. 2021

JECO

View full text Add to dashboard Cite

The study aims to determine the effect of disclosure of corporate social responsibility (CSRD), dividend policy, and audit committee financial expertise (ACFE) on earnings quality. It uses state ownership as a moderating variable. The population consists of government-linked companies (GLCs) and transportation and logistics sector companies listed on the Malaysia Stock Exchange for the period 2016-2019 by employing a purposive sampling method. The research analysis applies Moderate Regression Analysis (MRA) with the SPSS program. The results showed that CSRD has a positive effect on earnings quality. Meanwhile, dividend policy has a negative effect on earnings quality. Further, state ownership strengthens the relationship between dividend policy and earnings quality. However, ACFE does not affect earnings quality. At last, the moderating effect of government ownership variables is not significant to the relationship between CSRD and earnings quality.Keywords: CSR disclosure, dividend policy, ACFE, earnings quality, state ownership Faktor Penentu Kualitas Laba Dengan Kepemilikan Negara Sebagai Variabel Moderating Pada Perusahaan di MalaysiaAbstrak: Penelitian bertujuan untuk mengetahui pengaruh pengungkapan corporate social responsibility (CSRD), kebijakan deviden (dividend policy), dan keahlian keuangan komite audit (ACFE) terhadap kualitas laba (earning quality). Lebih lanjut, penelitian ini menggunakan kepemilikan pemerintah (state ownership) sebagai variabel moderating. Populasi penelitian terdiri dari government-linked companies (GLCs) dan perusahaan sektor transportasi serta logistik yang terdaftar di Malaysia Stock Exchange periode 2016-2019. Pemilihan sampel menerapkan metode purposive sampling. Analisis penelitian menggunakan Moderate Regression Analysis (MRA) dengan program SPSS. Hasil penelitian menunjukkan CSRD berpengaruh secara positif terhadap kualitas laba. Kebijakan deviden memiliki pengaruh secara negatif terhadap kualitas laba. Selanjutnya, state ownership memperkuat hubungan kebijakan deviden dan kualitas laba. Namun, ACFE tidak mampu memberikan pengaruh terhadap kualitas laba. Selanjutnya, pengaruh moderasi variabel kepemilikan pemerintah tidak signikan terhadap hubungan antara CSRD terhadap kualitas laba.Kata kunci: pengungkapan CSR, kebijakan deviden, ACFE, kualitas laba, kepemilikan negara

show abstract

Section: Template Of Jurnal Economiasupporting

confidence: 85%

Section: Template Of Jurnal Economiamentioning

confidence: 66%

See 1 more Smart Citation

The Determinant of Earning Quality Using State Ownership as Moderating Variable on Companies in Malaysia

Hidayah

Sholih

Agustina

et al. 2021

JECO

View full text Add to dashboard Cite

show abstract

“…With reference toHoltz-Eakin et al (1988) andPathak (2020), the present study employs the panel vector autoregression (VAR) method to test the direction of causality of firm performance (i.e. ROA it and TQ it ) with board independence (BoardInd it and BoardInd it ^2) and board size (BoardSize it and BoardSize it ^2).…”

mentioning

confidence: 99%

Non-linear relationship of board size and board independence with firm performance – evidence from India

Potharla

Amirishetty²

2021

JIBR

View full text Add to dashboard Cite

Purpose This study aims to examine the significance of the non-linear relationship of board size and board independence on the financial performance of listed non-financial firms in India. Design/methodology/approach The study draws the sample of the listed non-financial firm in the Indian market from the year 2011–2018 and applied panel least squares regression with and without industry fixed effects on the model with quadratic equation. Quantile regression is also used to test the robustness of the results. The financial performance is measured through one accounting measure (i.e. return on assets [ROA]) and one market-based measure (i.e. Tobin’s Q). The empirical model also controls firm-specific variables which are expected to have an impact on financial performance. Findings The study found that the relationship of board size and board independence with the financial performance of a firm is in a non-linear inverted U-shape. The results are qualitatively similar for both ROA and Tobin’s Q after controlling industry fixed effects. Originality/value This is the first study in India which tests the non-linear relationship of board size and board independence with the financial performance of the firm. The study contributes to the limited literature on the implications of board characteristics on the performance of the firms in India.

show abstract

“…Few studies also link earnings quality with dividend policy. For instance, Pathak and Ranajee (2020) and Nguyen and Bhi (2019) show a positive relationship between earnings quality, measured by the absolute value of discretionary accruals, and dividend payouts.…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Does earnings transparency affect corporate payout decisions?

Chauhan¹,

Pathak

2020

IJMF

Self Cite

View full text Add to dashboard Cite

PurposeThe paper examines how earnings transparency affects dividend payouts for Indian firms. The authors also explore the channels through which earnings transparency affects dividend payouts.Design/methodology/approachThe authors employ panel data estimation with fixed effects to examine the role of earnings transparency on dividend payouts. The authors also use path analysis to explore causation. The paper uses a sample of more than 2000 Indian listed firms, over the period 2001–2016.FindingsThe authors report that firms showing grater earning transparency pay more cash dividend. Their results do not support the signaling hypothesis about the dividend. However, these results provide explicit support to the theory that corporate dividend policy is an outcome of information asymmetry. Moreover, the path analysis reveals the effect of earnings transparency on corporate payout through the financial constraint channel. The results are robust to idiosyncratic controls; alternate measures of payout; alternate models; endogeneity concerns; and the alternate channel of returning money to stockholders.Practical implicationsManagers should also examine earnings transparency while formulating an adequate dividend policy for their firms. This study also helps investors to identify dividend-paying stocks.Originality/valueThis study particularly contributes to the literature examining the effect of earnings quality on dividend payouts through its effect on financial constraints. We, therefore, connect two streams of research that contemplate the relation between accounting-based information variables and dividend payouts and the relationship between financial constraints and dividend payouts. Moreover, using path analysis uniquely, the authors provide evidence on the relative importance of both the direct and the indirect link.

show abstract

Earnings quality and corporate payout policy linkages: An Indian context

Cited by 15 publications

References 33 publications

The Determinant of Earning Quality Using State Ownership as Moderating Variable on Companies in Malaysia

The Determinant of Earning Quality Using State Ownership as Moderating Variable on Companies in Malaysia

Non-linear relationship of board size and board independence with firm performance – evidence from India

Does earnings transparency affect corporate payout decisions?

Contact Info

Product

Resources

About