In Pakistani Service Industry: Dividend Payout Ratio as Function of some Factors

Khan, Waseem S.; Ashraf, Naheed

doi:10.6007/ijarafms/v4-i1/696

Cited by 6 publications

(8 citation statements)

References 8 publications

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“…In dividend payment decisions, sales growth is important for management consideration. There are differences of opinion from some financial experts about the relationship of sales growth to dividend payout ratios, some of which are positive (Ishaq et al, 2018;Myers & Bacon, 2004;Tahir & Mushtaq, 2016) and some have stated the opposite (Gill et al, 2010;Imran, 2011;Khan & Ashraf, 2014). Companies that grow rapidly tend to be more secure in obtaining funding to finance their business activities than companies that grow slowly.…”

Section: Relationship Of Sales Growth To Dividend Payout Ratiomentioning

confidence: 99%

“…High-growth companies have greater investment needs to fund new projects (Gill et al, 2010;Khan & Ashraf, 2014). To ensure access to external capital, the company builds a good reputation through higher dividend payments (Myers & Bacon, 2004).…”

Section: Relationship Of Sales Growth To Dividend Payout Ratiomentioning

confidence: 99%

“…Profitability is a factor often considered by directors in paying dividends. It has been proven by previous empirical studies that profitability is one of the main determinants of dividend payment decisions (Gill et al, 2010;Khan & Ashraf, 2014;Tahir & Mushtaq, 2016). Profitability affects the dividend policy because dividends are the amount of money paid by companies to shareholders that sourced from the company's net profit.…”

Section: Relationship Of Return On Assets To Dividend Payout Ratiomentioning

confidence: 99%

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An Analysis of the Relationship Between Earnings and Corporate Taxes on Dividend Policy of Companies in Sri-Kehati Index

Salvatori

Robiyanto

Harijono

2020

jmer

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Objective: This study examines the effect of earnings and corporate taxes role on the company's dividend policy in the SRI-KEHATI Index. In this research, dividend policy means dividends paid proportion to shareholders. Earnings are estimated by four financial ratios namely contributed capital ratio, prior year-earnings, sales growth, and return on assets.Research Design & Methods: The sample is taken according to purposive sampling with the criteria of the consistency of the company listed in the SRI-KEHATI Index during 2014-2017 and routinely distributes annual dividends, finally 14 companies are taken from 33 companies. Panel data were examined with the assistance of Eviews 9.0 software. Data collected from the company's financial statements and measured using a formula adopted from earlier research. Findings: Empirical results found that capital ratio, prior year-earnings, sales growth, and corporate taxes did not significantly affect the dividend payout ratio. While return on assets has a positive effect on dividend payout ratio. Companies that grow well will need more funds to cover their financing and try to keep up their income proportion, one way is to pay a constant dividend, lower, or even zero dividends. Limitations & Recommendations: This finding recommends that investors should pay attention to company profitability by measuring return on assets. Future research can use the new stock index’s constituents such as IDX High Dividend 20 and include other factors that indicated to determine dividend policy. Contribution & Value Added: This result contributes to the financial literature, especially related to the dividend policy of public listed companies in Indonesia. Practically, investors can use this result as additional information in investment decisions.

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Section: Relationship Of Sales Growth To Dividend Payout Ratiomentioning

confidence: 99%

Section: Relationship Of Sales Growth To Dividend Payout Ratiomentioning

confidence: 99%

Section: Relationship Of Return On Assets To Dividend Payout Ratiomentioning

confidence: 99%

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An Analysis of the Relationship Between Earnings and Corporate Taxes on Dividend Policy of Companies in Sri-Kehati Index

Salvatori

Robiyanto

Harijono

2020

jmer

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“…Hasil penelitian dari peneliti sebelumnya yaitu Awad (2015), Odawo & Ntoiti (2015) dan Osegbue et al (2014) menemukan bahwa leverage secara positif signifikan mempenagruhi kebijakan dividen. Namun penelitian yang dilakukan oleh Asad & Yousaf, (2014), Forti et al (2015), dan Khan & Ashraf (2014) menemukan bahwa leverage berpengaruh negatif pada kebijakan dividen.…”

Section: Pendahuluanunclassified

Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan Dan Risiko Bisnis Terhadap Kebijakan Dividen Pada Perusahaan Manufaktur

Mnune¹,

Purbawangsa²

2019

EJMUNUD

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ABSTRAKKebijakan dividen berkaitan dengan pengalokasian dan pendistribusian laba yang dimiliki perusahaan. Kebijakan dividen merupakan salah satu dari keputusan keuangan yang berhubungan dengan kebijakan apakah laba yang didapatkan perusahaan akan dibayarkan kepada pemegang saham dalam bentuk dividen atau ditahan guna memperkuat struktur modal. Penelitian ini mencoba menjelaskan mengenai pengaruh beberapa variabel yakni profitabilitas, leverage, ukuran perusahaan dan risiko bisnis. Sampel dalam penelitian ini adalah enam perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia periode 2013-2017. Teknik analisis data dalam penelitian ini menggunakan regresi linier berganda. Hasil penelitian menunjukkan bahwa profitabilitas secara positif signifikan mempengaruhi kebijakan dividen, leverage secara positif signifikan mempengaruhi kebijakan dividen, ukuran perusahaan tidak mempengaruhi kebijakan dividen, serta risiko bisnis secara negatif signifikan mempengaruhi kebijakan dividen. Implikasi penelitian ini diharapkan mampu memberikan pertimbangan dalam mengambil keputusan baik kepada perusahaan maupun pemegang saham terkait faktor yang mempengaruhi kebijakan dividen. ABSTRACTDividend policy is related to allocation and distribution of company profits. Dividend policy is one of the financial decisions related to the policy of whether the company's profits will be paid to shareholders as dividends or retained to strengthen the capital structure. This study aimed to examine the effect on profitability, leverage, firm size and business risk to dividend policy of the company in Indonesia Stock Exchange period 2013-2017. The sample used in this study were 6 manufacturing companies listed in Indonesia Stock Exchange from the period 2013-2017 Data analysis techniques in this study uses multiple linear regression. The results show that profitability has a positive and significant effect on dividend policy, leverage has a positive and significant effect on dividend policy, firm size has a negatif and not significant effect on dividend policy and business risk has a negatif and significant effect on dividend policy. The implications of this study are expected to give consideration in making decisions by companies and shareholders about dividend policy.

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“…According to Khan and Ashraf (2014), dividend payout ratio decision is due consideration for its legal and financial factors. Managers should consider determinants in deciding amount and size of cash distribution for shareholders.…”

Section: Dividend Payoutmentioning

confidence: 99%

The Impact of Corporate Governance on Dividend Payout of Manufacturing Firms Listed at the Nairobi Securities Exchange

Ikunda¹

2016

JFA

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This study sought to examine the impact of corporate governance on dividend payout of manufacturing firms listed at the NSE. The objectives of the study were; to determine the impact of board size, board composition, CEO tenure and managerial equity holding on dividend payout of manufacturing firms listed at NSE and finally, to establish the impact of corporate governance on dividend payout of manufacturing firms listed at NSE. The study employed a correlational research design and the population of the study comprised all manufacturing firms which were consistently listed at the Nairobi Securities Exchange from 2008-2014. Correlation and regression analysis were used to test the impact of the independent variables relating to corporate governance practices on the dependent variable (Dividend Payout). Independent one-way ANOVA test and independent t-test (one tailed) were used to determine the level of significance. The study found that board size, board composition, CEO tenure and management equity holding have a weak negative relationship with dividend payout. Further, the study found that board size has a statistical significant impact on dividend payout, while board composition, CEO tenure and managerial equity holding were found to have no statistical significant impact on the dividend payout. The empirical results from the multiple regression analysis indicated that there is a strong positive relationship between corporate governance and dividend payout. However, there was no statistical significant relationship between the two variables. Therefore, this study concludes that corporate governance has no impact on dividend payout of manufacturing firms listed at NSE.

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In Pakistani Service Industry: Dividend Payout Ratio as Function of some Factors

Abstract: The purpose of this paper is to find that dividend payout ratio is the function of

Cited by 6 publications

References 8 publications

An Analysis of the Relationship Between Earnings and Corporate Taxes on Dividend Policy of Companies in Sri-Kehati Index

An Analysis of the Relationship Between Earnings and Corporate Taxes on Dividend Policy of Companies in Sri-Kehati Index

Pengaruh Profitabilitas, Leverage, Ukuran Perusahaan Dan Risiko Bisnis Terhadap Kebijakan Dividen Pada Perusahaan Manufaktur

The Impact of Corporate Governance on Dividend Payout of Manufacturing Firms Listed at the Nairobi Securities Exchange

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