The Relationship between Dividend Policy and Shareholder’s Wealth (A Case Study At Mining Companies in Indonesia)

Yustisiana, Riska

doi:10.9790/487x-1902015357

Cited by 3 publications

(7 citation statements)

References 6 publications

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“…The study conducted in Pakistan by Gul et al (2012), Iqbal et al (2014) and Mohammed (2013) revealed similar significant positive relationship between dividend and market value. Budagaga (2017) obtained similar result in Poland, which is also consistent with the report of Yustisiana (2017) in Indonesian context. Thirumagal and Vasantha (2016) found similar result, using Indian pharmaceutical industry.…”

Section: Empirical Reviewsupporting

confidence: 83%

“…Similarly, Emeni and Ogbulu 2015 Inyiama and Ugah (2015) reported an insignificant negative effect of earnings on firm value. In Vietnam context, Ngo and Dang (2016) found significant positive relationship between earnings and market capitalization, which is consistent with the findings of Mohammed (2013) in Pakistan, while the report of Yustisiana (2017) in Indonesian context and Thirumagal and Vasantha (2016) in India showed a positive but insignificant effect of earnings on market price.…”

Section: Empirical Reviewsupporting

confidence: 77%

“…In Pakistan Gul et al (2012), Iqbal et al (2014) and Mohammed (2013) conducted such study. in Poland by Budagaga (2017); in Indonesia by Yustisiana (2017), in Vietnam by Ngo and Dang (2016), in Morocco by M'rabet and Boujjat (2016) and United States by DeAngelo and DeAngelo (2006); while, Geoffrey et al (2017) also discovered a positive but insignificant relationship. Contrariwise, Egbeonu et al (2016) reported a significant negative effect; while, Emeni and Ogbulu (2015) and Ozuomba and Ezeabsali (2017) who obtained negative but an insignificant relationship.…”

Section: Discussionmentioning

confidence: 98%

“…Despite the controversial assumptions in respect to the influence of shareholders' returns on firm value; it was reported that stock price increased eightfold in two decades of its initiation by the East Indian Company in 1700 and that the total capitalization of global Joint Stock Companies increased fourfold within 22 years (Frankfurter et al, 2003). Likewise, current studies have shown that dividend payment influences value of firms (Habumugisha and Mulyungi, 2018;Akinkoye and Akinadewo, 2018;Yustisiana, 2017). Over time, researchers have discovered that several factors drive management decision on the proportion of earnings to pay as dividend if a firm tends to attain its value maximization goal (Kajola et al, 2015;Ojeme et al, 2015, Kapoor et al, 2010.…”

Section: Introductionmentioning

confidence: 99%

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Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Oyeyemi¹,

Enyi²,

Emmanuel³

2019

Afr. J. Bus. Manage.

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The attainment of going concern concept of an entity relies heavily on its ability to maximize the wealth of its shareholders and value. The prospect of a firm to investors is a function of return, which signals to the market its good governance. The study examined the influence of shareholders' return on the value of manufacturing firms listed on Nigerian Stock Exchange using annual reports and accounts of 36 selected firms for a period of twenty years, between 2007 and 2016 (720 firm year observations). The results of the multivariate regression analysis (fixed effect) revealed that past dividend, agency cost, debt-equity ratio, and size have significant positive effect on market capitalization of listed manufacturing firms in Nigeria; while earnings per share and sales growth have insignificant negative influence on value of a firm though, the magnitude is immaterial. The study concluded that managers should look beyond the signaling effect of dividend, but place the interests of the key stakeholders (shareholders, management, employees, and loan holders) as well as the growth and expansion of the business at the centre of their decision-making. Especially on the proportion of earnings to be paid as dividend and the nature of dividend policy to be adopted to enhance its value.

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Section: Empirical Reviewsupporting

confidence: 83%

Section: Empirical Reviewsupporting

confidence: 77%

Section: Discussionmentioning

confidence: 98%

Section: Introductionmentioning

confidence: 99%

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Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Oyeyemi¹,

Enyi²,

Emmanuel³

2019

Afr. J. Bus. Manage.

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“…(I. Justina, 2020). Dividend policy play an important role by finance manager because it indicates the risk which investors take to invest in the company share.…”

Section: Empirical Literaturementioning

confidence: 99%

Impact of Dividend Policy on Shareholder’s Wealth in Power Generation and Distribution Firms in Pakistan

Hameed

2022

JREFM

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This article investigates the effect of dividend policy on shareholder wealth inside the energy generation and distribution corporations in Pakistan. The examination is carried out using a pattern of 12 organizations listed on the Pakistan Stock Exchange in the course of 2013-2017. The research employs both descriptive information and panel facts regression analysis to examine the relationship between dividend policy and shareholder wealth. The results endorse that dividend policy has a substantial effect on shareholder wealth in the strong technology and distribution companies in Pakistan. The findings reveal that corporations with an excessive dividend payout ratio generate better returns for their shareholders. Furthermore, the studies additionally examine the impact of other firm-particular elements, along with company size, income consistent with percentage, and rate-to-profits ratio, on shareholder wealth. The outcomes propose that those factors also have a widespread superb effect on shareholder wealth. The study has crucial implications for each investor and companies within the electricity technology and distribution area in Pakistan. The findings recommend that firms ought to adopt a dividend policy that maximizes shareholder wealth. This may be accomplished by way of preserving a high dividend payout ratio and making sure that the company-particular elements that impact shareholder wealth also are well-managed. The research also highlights the significance of understanding the specific characteristics of the power generation and distribution zone in Pakistan while developing a dividend policy. This region is noticeably regulated and challenges government rules, which may impact the financial performance of corporations in this sector. Therefore, firms running on this zone should carefully bear in mind the impact of regulatory and policy adjustments when developing their dividend policy.

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Dividend Policy and Its Impact on Shareholders’ Wealth: Case of Non-Financial Firms

Priyan

Nyabakora

2022

Towards Excell.

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Purpose: The research is about the effect of dividend policy on shareholders’ wealth for Dar es Salaam Stock Exchange listed non-financial firms in Tanzania from 2005 to 2019. Design/methodology: The research employs secondary data information from firms’ financial reports as published on the Dar es Salaam Stock Exchange website, using descriptive statistics, panel dynamic least square method, and cointegration analysis to test the association between variables. Findings: The results show that at 95 percent level of significance, dividend per share have significant positive effects on all proxies for shareholders’ wealth. However, dividend yield has insignificant negative effects on all proxies for shareholders’ wealth. The moderating variable indicates that investment opportunities have positive and significant effects on all the shareholders’ wealth proxies, which is one of the factors that strengthen the relationship between dividend policy and shareholders’ wealth. Originality/value: This result, being the first study done in Tanzania, apart from helping stakeholders to avoid generalization of findings from developed economies to developing countries, will also help firms’ managers on how to implement shareholders’ wealth-maximizing strategies and capital accumulation for their internal growth. Furthermore, the results will enable potential investors and shareholders to decide whether to invest in certain firms or not, and whether to sell their shares and leave or retain them.

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The Relationship between Dividend Policy and Shareholder’s Wealth (A Case Study At Mining Companies in Indonesia)

Cited by 3 publications

References 6 publications

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Shareholders return and value of manufacturing firms listed on the Nigerian stock exchange

Impact of Dividend Policy on Shareholder’s Wealth in Power Generation and Distribution Firms in Pakistan

Dividend Policy and Its Impact on Shareholders’ Wealth: Case of Non-Financial Firms

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