The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait

Abbadi, Sinan S.; Abuaddous, Murad; Bataineh, Hanady; Muttairi, Abdulla E.

doi:10.5430/ijfr.v11n5p518

Cited by 7 publications

(5 citation statements)

References 22 publications

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“…On the other side, the research results for the effect of the economic crisis caused by the COVID-19 pandemic on the relationship between earnings management and dividend payments were not statistically significant considering absolute discretionary accruals and income-decreasing discretionary accruals, which is in line with researches of Shah et al [24], Abbasi et al [25] and Abbadi et al [26].…”

Section: Relations To Previous Findingssupporting

confidence: 85%

“…Different authors (for example [11][12][13][14][15]) examined the connection between earnings management and dividend payout since "the level of reported earnings is an important determinant of dividends" [12; p.3]. It should be pointed out how research results are different meaning that some authors [11][12][13] evidenced positive relation between variable earnings management and dividend policy while others found no significant impact of earnings management on dividend policy [24][25][26].…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…It is interesting to point out a study conducted by Abbadi et al [26], who examined the relation between earnings management and dividend policy in Kuwait. However, the study performed on a sample of 46 companies in the period 2011-2016 found no significant relation between earnings management and dividend payout.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

See 2 more Smart Citations

Earnings Management and Dividend Payments during the Covid-19 Pandemic

Filipović¹,

Bartulović²,

Šušak³

2022

Interdisciplinary Description of Complex Systems

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The recent outbreak of coronavirus has caused the worst global economic crisis in the last few decades. A substantial number of companies have experienced severe economic difficulties and were tempted to adjust their financial figures in order to reach certain business thresholds. Maintaining an existing level of dividend payments is a powerful incentive to engage in such activities.The aim of this article was to estimate the effect of the economic crisis caused by the COVID-19 pandemic on the relationship between the estimated level of earnings management and dividend payments made by companies.Research models were estimated using panel analysis. The Modified Jones model was utilized to assess the level of earnings management. A total of 56 companies listed on the Zagreb Stock Exchange in the Republic of Croatia with their financial data from 2015 to 2020 were included in the research sample.Unlike in the case of absolute and income-decreasing discretionary accruals, results indicated that the economic crisis caused by the COVID-19 pandemic positively affected the relationship between earnings management and dividend payments in the case of income-increasing accruals regarding companies that made regular dividend payments.In conclusion, the economic crisis caused by the COVID-19 pandemic was an additional incentive for certain companies to perform income-increasing earnings management to reach the desired level of dividend payments.

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Section: Relations To Previous Findingssupporting

confidence: 85%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

See 1 more Smart Citation

Earnings Management and Dividend Payments during the Covid-19 Pandemic

Filipović¹,

Bartulović²,

Šušak³

2022

Interdisciplinary Description of Complex Systems

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“…Namun berlawanan dengan Srikanth & Prasad (2015) dengan hasil signifikan negatif. Sedangkan Khan & Shah (2019), Ibrahim et al (2015), Joshi (2019), S. Chansarn & T. Chansarn (2016), Manisha Khanna & Monika Khanna (2015), Haider et al (2013), Saleem & Alifiah (2017), Abbadi et al (2020), dan mengungkapkan pendapatan akrual tidak berpengaruh signifikan terhadap dividend payout.…”

Section: Hasil Uji Hipotesisunclassified

Praktik manajemen laba akrual dan upaya meningkatkan dividend payout perusahaan manufaktur di indonesia

Chandra

Kaling²

2021

INOVASI: Jurnal Ekonomi, Keuangan dan Manajemen

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Penelitian ini bertujuan untuk memahami pengaruh manajemen laba akrual dan penentu pembayaran dividen terhadap dividend payout pada perusahaan manufaktur yang terdaftar di BEI dari tahun 2016-2020. Variabel dependen yang digunakan adalah dividend payout, sedangkan variabel independen adalah pendapatan akrual, profitabilitas, likuidias, solvabilitas, pertumbuhan penjualan, dengan tambahan variabel kontrol berupa umur perusahaan dan ukuran perusahaan. Metode analisis yang digunakan untuk menguji hubungan masing-masing variabel independen terhadap dependen menggunakan regresi data panel. Hasil penelitian menyimpulkan rasio hutang terhadap modal, dan pertumbuhan penjualan memiliki hubungan signifikan negatif terhadap dividend payout. Sedangkan pendapatan akrual mempunyai hubungan signifikan positif terhadap dividend payout. Sementara itu profitabilitas dan likuiditas tidak berhubungan signifikan. Kata Kunci: Dividend payout; manajemen laba akrual; penentu rasio pembayaran dividen Impact of earnings management and determinant of dividend payout ratio towards dividend payout ratio in indonesia

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“…Therefore, the issue of good corporate governance mechanism implementation and ownership structure to decide dividend policy and to protect minority interests is widely discussed these days. Previous studies found that there is a clear association between dividend payment and ownership structure such as Abbadi et al (2020) that revealed a significant positive correlation between institutional ownership and dividend yield, whereas foreign ownership is correlated to a low incidence of dividend payments, there's also no evidence to suggest that family ownership or state ownership affects dividend yield in Jordan listed firms, and Hasan et al (2021) that concluded that government and institutional ownerships have a significant but negative effect on dividend payouts, whereas family and public ownerships have a significant but positive effect in Bangladesh. Moreover, Egri et al (2004) found that the relationship between corporate governance and dividend payouts is limited depending on the mechanism of protection both from the firm level and country level for investors.…”

Section: Introductionmentioning

confidence: 99%

Dividend policy, ownership structure and corporate governance: An empirical analysis of Indonesian firms

Mardani

2022

JEMA

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One of the essential aspects of corporate policy is the decision on dividend payments as this dividend policy affects the value of the company. This study aims to determine whether there is a possible association between dividend policy, ownership structure, and corporate governance of Indonesian financial firms. This study offers empirical evidence on the relationship between variables in the context of Indonesia, which is a frontier market. The sample includes financial firms listed on the Indonesia stock exchange during the period between 2011 and 2017. Data analysis techniques were performed by using ordinary least square regression. Based on the result of 242 observed data analyses, it was found that while managerial ownership has no significant but positive effect on the dividend payout ratio, institutional ownership has significant and negative effects on dividend policy for sample firms. This positive relationship reflects that increasing the percentage of managerial ownership at one particular point, will make managers think that there is no longer any benefit in increasing dividend payout. Moreover, the total number of directors has a significant negative effect on dividend payout and the percentages of an independent members of directors have a positive but not significant effect on dividend policy. This result reflects that the independent board has an essential role in directing management to protect stakeholders' interest in the company. The study also reclaimed that dividend policy is positively and significantly influenced by profitability but inversely proportional to capital structure.

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The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait

Cited by 7 publications

References 22 publications

Earnings Management and Dividend Payments during the Covid-19 Pandemic

Earnings Management and Dividend Payments during the Covid-19 Pandemic

Praktik manajemen laba akrual dan upaya meningkatkan dividend payout perusahaan manufaktur di indonesia

Dividend policy, ownership structure and corporate governance: An empirical analysis of Indonesian firms

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