What drives the disappearing dividends phenomenon?

Kuo, Jing‐Ming; Philip, Dennis; Zhang, Qingjing

doi:10.1016/j.jbankfin.2013.05.003

Cited by 48 publications

(40 citation statements)

References 31 publications

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“…This distribution is characterized by a modal value of 0%. This modal value of 0% is confirmed by other studies (Denis and Osobov 2008;Fama and French 2001;von Eije and Megginson 2008;Fatemi and Bildik 2012;Kuo et al 2013). In our paper, the option between 0% and 100% DPR is considered only for simplifications reasons.…”

Section: The Problemsupporting

confidence: 84%

How Long Does It Last to Systematically Make Bad Decisions? An Agent-Based Application for Dividend Policy

Dragotă

Delcea

2019

JRFM

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Bad decisions have harmful effects on the quality of human life and an increase of their duration expands these undesirable effects. Systematic bad decisions related to dividend policy can affect the investors’ quality of life in the long-term. We propose an agent-based model for the estimation of the duration of systematically making bad decisions, with an application on dividend policy. We propose an algorithm that can be used in modelling the interaction between different classes of shareholders and for predicting this duration. We perform numerical simulations based on this model using NetLogo 6.0.4. We prove that, as a result of agents’ interaction, in some conditions, the duration of systematically making bad decisions can be very long: some numerical simulations suggest that, in some circumstances, this duration can significantly exceed the human lifetime. Additionally, in some conditions, the company can fail before the power is switched. This duration can increase dramatically if the shareholders have a great level of trust in the management’s decisions. As an implication, a greater concern for the quality of financial education, and more performant instruments for controlling the power’s decisions are required.

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Section: The Problemsupporting

confidence: 84%

How Long Does It Last to Systematically Make Bad Decisions? An Agent-Based Application for Dividend Policy

Dragotă

Delcea

2019

JRFM

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“…The propensity to pay dividends is higher among more profitable firms (David & Osobov, 2008). The study by Kuo, Philip, and Zhang (2013) suggests that risk and liquidity are important determinants of the dividend policy in developed markets of US and Europe. The study by Louis and Urcan (2015) find that the effect of conservatism on dividend payout is more negative when agency conflicts between managers and shareholders are potentially more pronounced.…”

Section: Theoretical Postulatesmentioning

confidence: 99%

Determinants of dividends among Indian firms—An empirical study

Kumar¹,

Sujit

2018

Cogent Economics & Finance

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The study aims to understand the determinants of dividend trends of Indian firms. The study was based on a sample of 31,234 firms representing 15 different industry sectors. Construction materials, machinery and transportation equipment sectors were the most dividend intensive sectors in India. Partial least square structural equation modeling methodology (PLS SEM) was employed to examine the determinants of the dividend intensity of Indian firms. Different schemes of path models were tested and the results show that the higher the financial leverage, the lower is the propensity to pay dividends. Firms with high intangibles are expected to have higher agency costs. High growth firms have low dividend payout policies. Dividend intensity of firms is directly related to the size of firm. Higher the R&D intensity of the firms, greater is the dividend intensity of the firms. Firms with higher agency costs tend to have higher dividend intensity. Higher agency costs lead to lower cash flows for Indian firms. Firms with higher liquidity tend to pay more dividends. Profitable firms tend to have higher dividend intensity.

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“…The empirical paper by Kuo et al (2013) study the determinants of dividend payout policy and examine the role of liquidity, risk and catering in explaining the propensity to pay. The results indicate that risk play a major role in firms' dividend policy.…”

Section: Theoretical Underpinnings and Review Of Literaturementioning

confidence: 99%

Determinants of Dividend Policy: Evidence from GCC Market

Kumar

Abdul

2014

AFR

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This paper examines the determinants of dividend policy in GCC market based on sample firms in UAE market. An analysis was conducted to understand the dividend trends among different industry sectors in UAE market. The analysis of approximately 120 listed companies reveal that 80 per cent of the companies paid cash dividends during the three year period 2011-2013.The paper also examines the various theoretical attributes used in financial literature to understand the determinants of dividend policy. The partial least squares structural equations modeling (PLS-SEM) was used to test the alternate explanations of corporate dividend payout policy in the gulf market. The study finds support for residual theory and pecking order argument of dividends. Investment policy influences dividend policy. The results support the theory that firms with high growth rate in income requires higher capital expenditure and establish lower dividend payout on account of costly external financing. Liquidity is an important determinant of dividend decision. Stability of dividend payments is not a critical factor considered by financial markets in the region.

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What drives the disappearing dividends phenomenon?

Cited by 48 publications

References 31 publications

How Long Does It Last to Systematically Make Bad Decisions? An Agent-Based Application for Dividend Policy

How Long Does It Last to Systematically Make Bad Decisions? An Agent-Based Application for Dividend Policy

Determinants of dividends among Indian firms—An empirical study

Determinants of Dividend Policy: Evidence from GCC Market

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