The effect of financial reporting quality on corporate dividend policy

Koo, David S.; Ramalingegowda, Santhosh; Yu, Yong

doi:10.1007/s11142-017-9393-3

Cited by 109 publications

(85 citation statements)

References 65 publications

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“…In line with this strand of research, we identify mandatory CSR disclosure as an important driving force of strengthened stakeholder power in a clean differences‐in‐differences setting, which also provides more insights on how information disclosure affects dividend payouts (e.g. Dewenter and Warther, ; Khang and King, ; Li and Zhao, ; Hail et al ., ; Koo et al ., ).…”

Section: Introductionmentioning

confidence: 97%

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

Zhang

2019

Accounting & Finance

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Employing the enactment of a regulation that mandates a subset of firms to disclose their corporate social responsibility (CSR) activities as a quasi-natural experiment, we find that mandatory CSR disclosure reduces firms' dividend payouts significantly. Further analyses indicate that the negative relation is more pronounced for firms with weaker corporate governance mechanisms, where shareholders lack of effective tools to protect themselves against pressures from stakeholders, and a shift of relative power towards stakeholders is more likely to occur. Our paper provides a specific channel through which mandatory CSR disclosure benefits stakeholders at the expense of shareholders.

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Section: Introductionmentioning

confidence: 97%

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

Zhang

2019

Accounting & Finance

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“…Moreover, the stable payout ratio policy considers that enterprises should follow a fixed dividend payout ratio to distribute dividends over a long period of time [18]. However, the link between earnings and dividends weakens as an enterprise develops, such that investors will support repurchase more [18,19]. The most widely circulated bird-in-the-hand theory states that enterprises with high dividend distributions are preferred by investors [19].…”

Section: Dividend Policymentioning

confidence: 99%

“…However, the link between earnings and dividends weakens as an enterprise develops, such that investors will support repurchase more [18,19]. The most widely circulated bird-in-the-hand theory states that enterprises with high dividend distributions are preferred by investors [19]. As investors are also unable to determine the future developments and operation of the company, they prefer to obtain dividends in advance.…”

Section: Dividend Policymentioning

confidence: 99%

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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“…In addition to, audit committees play a key role in regulating low FRQ and bring back the user's confidence in financial reports (Salehi & Shirazi, 2016). FRQ has a strong positive influence on corporate dividend policy (Koo et al, 2017). Nevertheless, FRQ has an inverse association with the family firm's investment behavior and when a member of family acted as the CEO, there is insignificant impact of FRQ on investment decision (Lin et al, 2016).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Extended Value-Added Intellectual Coefficient and Financial Reporting Quality: Moderating Role of Global Financial Crisis

2019

RJFA

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Besides traditional approaches, this study aimed to construct and validate the new model of intellectual capital and financial reporting quality and created a deeper and better understanding through the use of rigorous secondary data. It adopted new formula of intellectual capital instead of traditional primary measures and explored the role of financial reporting quality in financial success of firms. Study is helpful for decision makers, especially from the manufacturing sector, to mould their practices accordingly and they will also realize the importance of high financial reporting quality. The study used Three-stage least squares regression analysis to investigate the relationship between variables. Extended Value-Added Intellectual Coefficient method is used to measure intellectual capital and discretionary revenues method is used to measure financial reporting quality. Panel data was collected from 50 firms, included in fortune global 500 companies list from 2007 to 2017. Findings disclosed that intellectual capital and process capital has a significant impact on financial performance. Human capital and relational capital negatively influence however, innovation capital and financial reporting quality positively influence financial performance. Global Financial Crisis positively moderates the effect of intellectual capital on financial performance but it doesn't moderate the effect of financial reporting quality on financial performance.

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The effect of financial reporting quality on corporate dividend policy

Cited by 109 publications

References 65 publications

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

Mandatory corporate social responsibility disclosure and dividend payouts: evidence from a quasi‐natural experiment

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

Extended Value-Added Intellectual Coefficient and Financial Reporting Quality: Moderating Role of Global Financial Crisis

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