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Verma, Savita. "Ownership structure and corporate dividend policy." Thesis, University of British Columbia, 1990. http://hdl.handle.net/2429/31375.
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This study investigates the potential role of ownership structure as a determinant of the corporate dividend policy.
A firm's dividend policy is modelled as the outcome of a voting game among groups of asymmetrically informed shareholders, who also have different marginal tax rates for dividend income. The outcome of the voting game is determined by the relative voting powers of these shareholder groups. Voting power is denned as the probability that a particular block of shares will be pivotal in determining the outcome of the voting game.
Using Shapley values as instruments for shareholder groups' voting powers, data on firms which traded on the Toronto Stock Exchange during the 1976-88 period are employed
to test the model's predictions.Business, Sauder School of
Graduate
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Al-Malkawi, Husam-Aladin Nizar Y., University of Western Sydney, College of Law and Business, and School of Economics and Finance. "Dividend policy of publicly quoted companies in emerging markets : the case of Jordan." THESIS_CLAB_EFI_Al-Malkawi_H.xml, 2005. http://handle.uws.edu.au:8081/1959.7/819.
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The determinants of corporate dividend policy remain controversial despite half a century of active research. Over that time a number of competing theories of dividend policy have been proposed, but no consensus has been reached about their explanatory power. This thesis examines the determinants of dividend policy of publicly quoted companies in Jordan as a case study of an emerging market. The study uses a firm-level panel data set of all publicly traded firms on the Ammam Stock Exchange between 1989 and 2000. Nine research hypotheses are developed, which are used to represent the main theories of corporate dividends. The results of studies conducted in this thesis suggest that the proportion of stocks held by insiders and state ownership significantly affect the amount of dividends paid, but not the decision to pay dividends. Larger, mature, profitable firms with less investment opportunities are more likely to pay dividends. These factors are found to also positively affect the level of dividends. Results provide no support for the signalling hypothesis. The thesis concludes with a discussion of some of the implications of all results and suggestions for further research.Doctor of Philosophy (Finance)
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Farinha, Jorge Bento Ribeiro Barbosa. "Dividend policy, corporate governance and managerial entrenchment." Thesis, Lancaster University, 1999. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.310531.
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Galiakhmetova, Ramilya <1985>. "Corporate Governance and Dividend Policy in European Banking." Doctoral thesis, Alma Mater Studiorum - Università di Bologna, 2013. http://amsdottorato.unibo.it/5657/.
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This dissertation investigates corporate governance and dividend policy in banking. This topic has recently attracted the attention of numerous scholars all over the world and currently remains one of the most discussed topics in Banking. The core of the dissertation is constituted by three papers. The first paper generalizes the main achievements in the field of relevant study using the approach of meta-analysis. The second paper provides an empirical analysis of the effect of banking corporate governance on dividend payout. Finally, the third paper investigates empirically the effect of government bailout during 2007-2010 on corporate governance and dividend policy of banks.
The dissertation uses a new hand-collected data set with information on corporate governance, ownership structure and compensation structure for a sample of listed banks from 15 European countries for the period 2005-2010. The empirical papers employ such econometric approaches as Within-Group model, difference-in-difference technique, and propensity score matching method based on the Nearest Neighbor Matching estimator.
The main empirical results may be summarized as follows. First, we provide evidence that CEO power and connection to government are associated with lower dividend payout ratios. This result supports the view that banking regulators are prevalently concerned about the safety of the bank, and powerful bank CEOs can afford to distribute low payout ratios, at the expense of minority shareholders.
Next, we find that government bailout during 2007-2010 changes the banks’ ownership structure and helps to keep lending by bailed bank at the pre-crisis level. Finally, we provide robust evidence for increased control over the banks that receive government money. These findings show the important role of government when overcoming the consequences of the banking crisis, and high quality of governance of public bailouts in European countries.
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Lawrence, Stephen Caleb. "Essays in empirical corporate finance." Thesis, Boston College, 2007. http://hdl.handle.net/2345/591.
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Thesis advisor: Edith HotchkissChapter one of this dissertation provides new evidence on the existence of dividend clienteles for institutional investors. We directly examine individual institutions' preferences for dividend paying stocks based on the characteristics of stocks held in their portfolio. Many institutions follow persistent investment styles, maintaining relatively high or low dividend yield portfolios over time. Institutions which hold portfolios of higher yielding stocks are significantly more likely to increase their holdings in response to a dividend increase or sell their stock in response to a decrease. For a subset of institutions, we directly observe the proportion of their portfolio managed on behalf of taxable clients. Consistent with tax-induced dividend clienteles, institutions with more taxable clients are less likely to increase their holdings in response to a dividend increase. Finally, we show that stock price reactions to announcements of dividend increases are related to characteristics of the institutions holding the stock. Our results suggest that tax status, as well as other factors are important in explaining observed clientele behavior. Chapter two explores the determinants of heterogeneity in institutional investor portfolio preferences and the relationship between institutions and the clients they serve. I find that the characteristics of an institution's clients and the characteristics of the institution itself are both important determinants of portfolio preferences and trading behavior. Specifically, I find that institutions traditionally subject to prudent investor laws are more likely to invest in high quality stocks, although, institutions sub-managing money for pension funds are less prudent than pension managers themselves. In addition, I find that institutions with taxable clients are likely to avoid unnecessary dividend taxation and turn over their portfolios less frequently. More generally, institutions exhibit systematic shifts in their exposure to common risk factors that may be explained in part by the levels and changes in client composition. While evidence for a causal link between client shifts and institutional preferences is limited to mutual funds, contemporaneous changes in clients and portfolio characteristics suggest that the dynamics of institutional investment are closely related to the nature of the clients served
Thesis (PhD) — Boston College, 2007
Submitted to: Boston College. Carroll School of Management
Discipline: Finance
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Silva, Domingos Luis Correia da. "Corporate control and financial policy : an empirical investigation of dividend policy in Germany." Thesis, University of Oxford, 1996. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.389744.
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Pan, Lee-Hsien. "Two essays on dividend policy, managerial compensation, and corporate governance." Related electronic resource: Current Research at SU : database of SU dissertations, recent titles available full text, 2009. http://wwwlib.umi.com/cr/syr/main.
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Truong, Thanh, and thanh truong@rmit edu au. "Corporate Ownership, Equity Agency Costs and Dividend Policy: An Empirical Analysis." RMIT University. Economics, Finance and Marketing, 2008. http://adt.lib.rmit.edu.au/adt/public/adt-VIT20080528.094747.
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Equity agency costs are important to the firm and the management of these costs is a critical element of corporate governance, yet empirical research that focuses on the magnitude and impact of agency costs is limited. This thesis sets out to furnish empirical evidence in the area of corporate ownership with a particular focus on the magnitude of equity agency costs as well as the relation that exists between the largest shareholder in a firm and equity agency costs and between the largest shareholder and the dividend policy that a firm adopts. This thesis provides an empirical analysis of the effect of corporate ownership, together with other governance mechanisms on equity agency conflicts for the largest 500 Australian listed firms. The results from this analysis provide strong support for the view that equity agency costs are related to corporate ownership. Specifically, there is evidence of a significant non-linear relation between inside ownership and the proxies for agency costs. Further, the results demonstrate that other governance mechanisms, particularly board size, board leadership and short-term debt financing, are effective in improving the use of firm assets, yet they do not seem to restrain firm management from incurring excessive discretionary operating expenses. This thesis also extends the investigation of the corporate ownership-equity agency cost relation by focusing on the largest shareholder for 9,165 listed firms drawn from 43 countries around the world. The results suggest that cross-sectional variation in equity agency costs can be partly attributable to corporate ownership. Specifically, there is evidence of a statistically significant non-linear relation between the shareholding of the largest shareholder and the agency cost proxies. The type of the largest shareholder, i.e. whether the largest shareholder is an insider or a financial institution, is also important in analysis of this relation. Further, debt financing, dividend policy and legal origin vary in their impact on the agency cost proxies. This thesis also investigates the interaction between the largest shareholder and dividend policy for 8,279 listed firms drawn from 37 countries around the world. Consistent with previous studies, the results suggest that firms are more likely to pay dividends when profitability is high, debt is low, investment opportunities are limited, or when the largest shareholder is not an insider. It is also apparent that largest shareholding and dividend payout are related and that, consistent with the extant literature, legal system does matter in dividend policy decisions. Together, the results imply that equity agency costs vary with corporate ownership though this relation remains, of course, the subject of continuing investigation in finance. A major contribution of this thesis is demonstrating that corporate ownership, particularly the largest shareholder, plays a pivotal role in controlling agency costs. Accordingly, this suggests the following policy implication: by improving the legal environment and regulatory constraints imposed on large shareholders as well as legal protection for minority shareholders, the efficiency gains generated from large shareholder control can be translated into higher firm valuation to the benefit of all shareholders in the firm.
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Pan, Carrie H. "Two essays in corporate finance." Columbus, Ohio : Ohio State University, 2007. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1186166338.
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Yensu, Joseph. "Capital structure, corporate cash holding and dividend policy in African countries." Thesis, University of Southampton, 2014. https://eprints.soton.ac.uk/367755/.
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This thesis centres on capital structure, corporate cash holdings, and dividend policy in African countries. Three different areas of research are followed and, employing different estimation techniques and methods, this thesis offers the following results: Firstly, the leverage trends across the countries are very low and stable, with country and firm specific factors playing a significant role in determining the level of leverage. Secondly, corporate cash holdings in the countries are significantly determined by the firm level factors with stable trends. Thirdly, dividend payers are more profitable, have larger firm size, greater investment, high retention of earnings and less financial leverage than non-paying firms. In countries where GDP is low, firms are likely to pay dividends, and non-payers of dividends have high levels of corruption. Country and firm factors are significant in determining dividend. The thesis makes the following contributions to the literature: First and foremost, the dataset used covers a much longer period and a larger sample of African firms. Secondly, there is a cross-country comparison, which is rare in most previous studies. Also, both firm and country specific factors were considered when determining the relationships. More importantly, the thesis is the first research to confirm that Pecking order and Trade off theories are robust vehicles for explaining differentials in capital structure and corporate cash holdings in Africa. In conclusion, this thesis provides the following public policy recommendations: Governments should strengthen their institutional frame-works for good governance and rule of law, and support the capital and stock markets to attract investment, and also have a positive effect on business and industry. They should also ensure efficient management of the banking sector operations in order to reduce the interest rate by reducing inflation, and encourage domestic savings and their sustainability, thereby boosting the financing of firms and private sector development to create more job opportunities and growth. Finally, policy makers need to set up special funds which firms can tap into for research and development, to develop innovative ideas, introduce policies against political instability, corruption and political manipulation, to ensure total economic growth.
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Charbti, Sana. "Dividend policy, irrationality approaches and behavioral corporate finance : theory and evidence." Thesis, Bourgogne Franche-Comté, 2020. http://www.theses.fr/2020UBFCG003.
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La finance d’entreprise comportementale est un domaine qui a suscité beaucoup d’intérêts ces dix dernières années chez les financiers, les psychologues et les spécialistes des neurosciences. Ce travail de recherche s’inscrit dans le courant de la finance d’entreprise comportementale qui s’avère être un champ de recherche novateur, complexe et résistant à l’analyse objective. La question des dividendes, bien que récurrente, ne cesse d’occuper une position axiologique dans les recherches récentes en Finance. Depuis 2015, la France est considérée comme l’un des pays les plus généreux en termes de distribution de dividendes dans l’Union européenne (UE). Il est à ce niveau une question de recherche s’employant à délimiter les contours réels des déterminants de la décision et du montant du dividende distribué. Concrètement, l’objectif de ce travail consiste à étudier d’une part, certains facteurs exogènes susceptibles d’expliquer la politique de distribution de dividende, et à évaluer d’autre part leurs impacts sur la décision de versement et le taux de distribution à travers le sentiment d’investisseur et les biais comportementaux des dirigeants français. En termes d’objectifs ,cette thèse s’est employée à apporter quelques éléments de réponses aux questions de l’importance du sentiment sectoriel dans la décision de versement de dividende objet du premier chapitre (la théorie du Catering). Les résultats montrent que le sentiment d’investisseur n’a pas un impact significatif sur la decision de distribution de dividendes pour le cas de la France (Ferris et al. (2009) ; La Porta et al. (2000)). Contrairement à Anouar et Aubert (2017), les résultats permettent de mettre en évidence un impact positif et significatif du sentiment de l'investisseur sur la probabilité du paiement du dividendes pour le cas du secteur industriel. Un tel résultat montre que les entreprises faisant partie d'un secteur industriel sont en mesure de répondre aux besoins des investisseurs en se basant sur la demande de ces derniers en matière de distribution de dividendes. L'analyse de régression confirme que le sentiment sectoriel est un indicateur approprié pour tester la théorie du Catering (Baker and Wurgler 2004a). Le second chapitre analyse l’impact de l’excès de confiance des dirigeants sur la politique de distribution de dividendes. En utilisant un échantillon d'entreprises françaises, nous démontrons que l'excès de confiance des dirigeants joue un rôle déterminant dans l'explication de la politique de dividende des entreprises françaises. L'excès de confiance des dirigeants exerce un effet positif sur le paiement des dividendes des entreprises.Le troisième chapitre s’interroge sur les implications de la gouvernance en termes de responsabilisation et rationalisation des décisions et ses effets sur la modération des impulsions de l’irrationalité des agents. Nos principaux résultats concernant cette analyse (régression quantile) montrent que les coefficients de l'indice de surconfiance des gestionnaires sont positifs et significatifs, respectivement, aux quantiles de 30 %, 50 %, 60 % et 80 % de distribution de dividendes. L'excès de confiance des dirigeants français se traduit donc par une augmentation de la distribution de dividendes. Toutefois, l'indice du sentiment est insignifiant pour différents quantiles de distribution de dividendesBehavioural corporate finance is an area that has attracted a lot of interest from financial economists, psychologists and neuroscientists over the past decade. This research falls within the scope of behavioural corporate finance, which proves to be an new and promising field of research. The question of dividends, although recurrent, continues to occupy an axiological position in recent research in Finance. Since 2015, France has been considered as one of the most generous countries in terms of dividend distribution in the European Union (EU). At this level, it is a question of research aimed at delimiting the real contours of the determinants of the decision and the amount of the dividend distributed. In concrete terms, the objective of this work is to study certain exogenous factors likely to explain the dividend distribution policy, on the one hand, and to assess their impact on the payment decision and the distribution rate through the investor sentiment and behavioural biases of French executives, on the other hand. In terms of objectives, this thesis has sought to provide some answers to the questions of the importance of sectoral sentiment in the decision to pay dividends, which is the subject of the first chapter (the Catering theory). The results show that the investor sentiment does not have a significant impact on the decision to distribute dividends in the French case (Ferris et al. (2009); La Porta et al. (2000). Contrary to Anouar and Aubert (2017), our results highlight a positive and significant impact of the investor sentiment on the probability of dividend payment in the industrial sector. Such a result shows that companies in the industrial sector are able to meet investors' needs based on their demand for dividend distribution. Regression analysis confirms that sectoral sentiment is an appropriate indicator to test the Catering theory (Baker and Wurgler 2004a). The second chapter analyses the impact of managerial overconfidence on dividend distribution policy. By using a sample of French companies, we show that the excess confidence of managers plays a decisive role in explaining the dividend policy of French companies. Over-confidence of CEO has a positive effect on the dividend payout. The third chapter examines the implications of governance in terms of accountability and rationalization of decisions and its effects on the moderation of the impulses of agents' irrationality. Our main results concerning this analysis (quantile regression) show that the coefficients of the managers' overconfidence index are positive and significant, respectively, in the quantile of 30%, 50%, 60% and 80% dividend distribution. The over-confidence of French executives is reflected by an increase in dividend payments. However, the sentiment index is non-significant for different dividend distribution quantile
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Kinkki, Seppo. "Essays on minority protection and dividend policy /." Helsinki : Helsinki School of Economics, 2008. http://www.gbv.de/dms/zbw/560343396.pdf.
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Al-Najjar, Basil. "Modelling capital structure, dividend policy, and corporate governance : evidence from Jordanian data." Thesis, University of the West of England, Bristol, 2008. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.445110.
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Al, Ghazali Abdullah. "The economic and behavioural factors affecting corporate dividend policy : theory and evidence." Thesis, University of Bath, 2015. https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.665388.
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This focuses on corporate dividend policy. The first empirical chapter analyses the information content of dividend announcements and factors that drive dividend changes in Oman, as a unique environment, for the period 2000-2011. Our work complements, and contrasts with, an existing study (Al-Yahyaee et al., 2011), which demonstrates a positive correlation between dividends and stock prices in Oman, in support of the signalling theory. Employing multiple methods from earlier studies, we demonstrate that there is some relationship between dividends and future profitability. However, after controlling for the nonlinearity in the profitability process, we find no evidence for the signalling theory of dividends. Furthermore, our analysis affirms the importance of past and current profitability in influencing the magnitude and the propensity to change (increase or decrease) dividends in Omani firms. Moreover, the results provide no evidence of the life cycle theory as an important factor that influences dividend changes in the emerging market of Oman. The second chapter examines the relationship between managerial overconfidence, dividends and firm value by developing theoretical models that examine the conditions under which managerial overconfidence, dividends and firm value may be positive or negative. Furthermore, the models incorporate moral hazard, in terms of managerial effort shirking, and the potential for the manager to choose negative NPV projects, due to private benefits. Our models demonstrate that overconfidence can lead to higher dividends (when the manager is overconfident about his current ability) or lower dividends (when the manager is overconfident about his future ability). Furthermore, our results demonstrate that managerial bounded rationality could impact this relation. The final chapter empirically examines the effect of managerial overconfidence on UK firms’ payout policy for the period 2000 to 2012. The analysis incorporates, in addition to common firm-specific factors, a wide range of corporate governance factors and managerial characteristics that have been documented to affect the relationship between overconfidence and payout policy. Our results are robust to several estimation considerations. The findings show that the influence of overconfident CEOs on the amount of and the propensity to pay dividends is significant within the UK context. Specifically, we detect that there is a reduction in dividend payments in firms managed by overconfident managers compared to the non-overconfident counterparts. Moreover, we affirm that cash flows, firm size and profitability are positively correlated, while leverage, firm growth and investment are negatively correlated with the amount of and propensity to pay dividends. Interestingly, we demonstrate that firms with the potential for undervaluation reduce dividend payments. Some of the corporate governance factors are shown to motivate firms to pay more dividends, while these factors seem to have no influence on the propensity to pay dividends. The results also show that in general higher overconfidence leads to more share repurchases but lower total payouts. Overall, managerial overconfidence should be considered as an important factor influencing payout policy in addition to other known factors.
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Yu, Bing. "Agency Costs of Stakeholders and Corporate Finance." Kent State University / OhioLINK, 2009. http://rave.ohiolink.edu/etdc/view?acc_num=kent1258316541.
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Zagonel, Timóteo. "Política de dividendos, tributação e governança corporativa no Brasil." reponame:Biblioteca Digital de Teses e Dissertações da UFRGS, 2013. http://hdl.handle.net/10183/72819.
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Esta pesquisa busca analisar a influência da tributação e da governança corporativa sobre as políticas de dividendos das companhias de capital aberto brasileiras no período de 1986 a 2011, através de estimações Probit e Tobit com dados em painel. Particularmente no Brasil houve diversas mudanças na legislação tributária dentro do período analisado, sendo assim uma boa oportunidade para esse estudo. Os resultados empíricos sugerem que: a) quando houve aumento no Lucro Por Ação, o percentual do lucro distribuído em forma de proventos foi maior nos períodos em que não houve incidência de tributação e menor quando houve incidência de tributação; b) companhias estatais distribuíram menos dividendos do que companhias privadas; c) companhias que distribuíram dividendos também distribuíram Juros Sobre Capital Próprio; d) companhias que possuem governança corporativa tendem a distribuir mais dividendos.This paper investigates the influence of taxes and corporate governance on dividend policy of Brazilian public companies in the years 1986 to 2011, using panel data Probit and Tobit estimation. There are several tax law changes particularly in Brazil within the period analyzed, creating a good opportunity to study dividend policy. Empirical results suggests that (a) when Earnings Per Share increased, the percentage of profits distributed in the form of dividends was higher in periods in which there was no incidence of taxation and lower when there was incidence of taxation; (b) state owned companies paid less dividends than private companies; (c) companies that paid dividends also paid Interest On Equity Capital; (d) companies under corporate governance best practices tend to pay more dividends.
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Nnadi, M. A. "The effect of mergers and acquisitions on the dividend policy of banks." Thesis, Coventry University, 2010. http://curve.coventry.ac.uk/open/items/b15ce6f3-a85e-2042-c896-97b558445b23/1.
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The number of domestic and cross border bank mergers and acquisitions (M&A) has increased over the last decade with a resultant impact on the bank dividend. This study examines the effect of M&A on the dividend policy by comparing the abnormal returns, profitability and dividend policy of the domestic and cross border bank acquirers. The study focused on EU mega-bank mergers and acquisitions within 1997-2007 involving only commercial-to-commercial banks. The sample consists of a total of 62 mega-M&A with a minimum deal value of €500 million. Three hypotheses were formulated specifically to test: (i) the wealth effect and geographical diversification of the M&A between domestic and cross border acquirers; (ii) the effect on in the financial performance of both acquirers and (iii) the M&A impact on dividend policy on banks after bank M&A. Two strands of the literature were reviewed focusing on M&A and dividend policy. The event study methodology was used to calculate the abnormal returns of both the domestic and cross border acquirers which were standardised. A long window of 61 days was applied to capture a satisfactory length of pre and post merger events that could capture the behaviour of the abnormal returns and consequent effect on dividend policy. The hierarchical regression model was used to estimate the impact of the variables on the profitability and dividend policy of the acquirer banks. In comparison with the domestic acquirers, the cross border abnormal returns showed a trend of significant negative results following the M&A announcement. The domestic acquirers showed no significance but, on average have higher cumulative total standardised abnormal returns (CTSAR) than the cross border acquired banks. The result of the financial performance showed that CTSAR of the cross border acquirers is significantly affected by the profitability of the banks but insignificant with domestic acquirers. However, the cost-to –income ratio (CIR) significantly affects the performance of both bank acquirers. CIR and RISK (measured by the ratio of the loan provision to net interest revenue of the banks) highly correlated with profitability of both the domestic and cross border acquirers. The management of costs and loans risks were found to be significant variables in the achievement of profitability among domestic acquirers. The dividend policy hypothesis result indicated that CTSAR has a weak correlation and insignificant effect on the dividend policy variables. Infact, the Causality test result confirmed that the CTSAR does not Granger cause dividend policy. However, the study provides strong support to previous studies that beta, liquidity, taxes, and the finance structure of the acquirers are significant variables in the formulation of the dividend policy of the merged banks. The beta, which a proxy for risk, is the most significant factor affecting the dividend policy of the merged banks.
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Basuki, Hardo. "The impact of the 1997 abolition of the tax credit on dividends in the UK and corporate dividend policy." Thesis, University of Strathclyde, 2005. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.424251.
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Lue, Alexander W. "Fire the caterer : a test of catering theory for corporate dividend payout policy." Thesis, Massachusetts Institute of Technology, 2011. http://hdl.handle.net/1721.1/66442.
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Thesis (M. Eng.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science, 2011.Cataloged from PDF version of thesis.
Includes bibliographical references (p. [37]).
We propose that the catering theory of dividends will not hold when tested with an extended sample period, different formulations of the dividend premium, and subsets of our sample divided by industry. The catering theory implies that managers cater to irrational and timevarying investor demand for dividends. This demand can be proxied by a dividend premium, a comparison of the market-to-book ratio of payers versus non-payers. The dividend premium that the catering model is based on suffers from a very arbitrary derivation. We find that coefficients for the regression of catering using an extended sample period and different derivations of the dividend premium give results with smaller economic and statistical significance. Furthermore, tests of our sample by industry show that the dividend premium, supposedly a market-wide measure that affects all firms, has different effects on various industries. Though the catering theory finds significance given a particular methodology, further analysis shows that the model is based on spurious correlation, and not true causation.
by Alexander W. Lue.
M.Eng.
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Ding, Xiaoming. "Capital structure and dividend policy issues in corporate finance : evidence from UK firms." Thesis, University of Birmingham, 2007. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.633084.
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The research reported in this doctoral thesis aims to contribute to the corporate finance literature, in the context of capital structure and dividend policy decisions by UK firms, by focusing on three main issues: empirical testing of the pecking order theory of capital structure; simultaneous determination of capital structure and dividend policy; and simultaneous determination of debt, dividend policy and insider ownership. The methodology of the study involves a review of the relevant theoretical and empirical literature, specification of relevant models, data collection, estimation and testing of the models, and interpretation of the empirical results. Hence, the thesis is structured into six chapters, comprising an introduction, four stand-alone papers and a conclusion. The first paper critically reviews the main theory and empirical findings of capital structure and dividend policy; some promising research ideas are identified. The second paper tests the pecking order theory on UK firms; my results suggest a 'new pecking order' of internal funds, equity financing and debt financing as a last resort. The third paper empirically tests the simultaneous effects of capital structure and dividend policy on UK firms using a system equation model. The last empirical paper extends the idea to include the insider ownership into consideration. The main conclusions of the thesis are produced in chapter six together with some promising research ideas for extending the work in this study.
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Johansson, Jakob, and Hallberg Martin. "Does Corporate Liquidity Affect Dividend Policy? : A Quantitative Study on Public European Firms." Thesis, Umeå universitet, Företagsekonomi, 2021. http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184863.
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This thesis examines the relationship between corporate liquidity and dividend policy. The corporate liquidity is measured by proven liquidity ratios and the dividend policy is divided into cash dividends and share repurchases. In order to examine the possible relationship between corporate liquidity and dividend policy, public European firms are examined. Denmark, France, Germany, Norway, Sweden, and the UK are selected based on the similarities in the regulation and market structure in the countries. The thesis aims at furthering the knowledge on the role played by corporate liquidity for dividend policy. In our ambition to investigate the before-mentioned relationship we use a panel data set over five years extracted from Datastream. Any newfound evidence on the subject can help investors, creditors, and other stakeholders in evaluating firms based on their liquidity. We used a deductive quantitative method to analyse the chosen relationship. The study concluded a significant relationship between corporate liquidity and dividend, although negative as opposed to our expectations. With regards to share repurchase, no significant effect was found from corporate liquidity. Free cash flow on the other hand appears to have a positive effect on the amount of share repurchases carried through. We discuss mentioned relationships and attribute them to the mature firms in this sample and the liquidity levels of mature firms.The theories supporting these findings are Agency Theory, Pecking Order Theory, Shareholder Theory, Stakeholder Theory, Liquidity Preference Theory.
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Hop, K. G. "Corporate payout policy: a study on multinationality and legal origin." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-377174.
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This paper investigates determinants of payout levels and payout composition in multinational corporations and domestic corporations and how payout differs between the two, as well as the effect of a country’s legal tradition on payout, on a worldwide sample. My main findings are that multinational corporations’ total payout is slightly lower than domestic corporations’ payout when taking into account a country’s legal tradition affects. No support is found that multinationals and domestic corporations differ in payout composition and payout composition is not changing over time, according to my results. My findings are partly consistent with theories on how ownership structures and agency problems affect payout policy. Still, the puzzle in unsolved.
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Wu, Yulin. "The impacts of credit default swaps on debt pricing, corporate investment and dividend policy." Thesis, University of Bath, 2018. https://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.767580.
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This thesis seeks to answer how the availability of credit default swaps (CDSs) affects the economy and its participants. As a sort of financial innovation, CDSs transfer default risk among investors. For each transaction, the CDS buyer pays the seller a premium and, in exchange, receives compensation if a specified credit event happens. In the process, the risk taker has been changed. This alteration subtly affects the incentives of creditors and borrowers and the underlying economic logic merits better understanding. Our research firstly explores the impact of credit default swaps on the yield spread between corporate and Treasury bonds. Since CDSs can affect debt pricing in both negative and positive ways, we attempt to separate these two opposite forces. Using both theoretical and empirical approaches, we show how firm-specific CDSs affect the yield spread under different bond issuing conditions. Specifically, we find that the aggregate CDS effect depends on firms' credit strengths when bonds are issued and the yield spread shrinks (expands), after the start of CDS trading, with good (poor) firm credit. The second motivation of this thesis is to investigate changes in a firm's investment and its investment-cash flow sensitivity following the introduction of CDS trading. We find that reference firms reduce their investments, on average, after introducing credit default swaps and their investment-cash flow sensitivities increase simultaneously. However, these effects are dependent on firms' qualities. For firms with high liquidity or integrity, investments are increased and they rely less on cash flows while firms with low liquidity or integrity cut down investments and exhibit higher dependence. Finally, we extend our research to the CDS effects on corporate dividend policy, the signaling role of dividends and stock responses to dividend announcements. As vehicles for transferring risk, CDSs weaken third-party protection for minority shareholders. This, in turn, can affect managers' incentives and the setting of dividend policy. We find that firms are more likely to pay, increase and continue to pay dividends after their debts are referenced by CDSs especially for firms with higher free cash flows, older firms and larger firms. The connotation changes too: the relationship between dividends and future earnings growth is weakened following the initiation of a CDS market.
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Dundeberg, Mirjam. "Does vote differention affect dividend payout policy? : A study on swedish listed firms." Thesis, Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Economics, Finance and Statistics, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-16118.
Full textAbstract:
This thesis investigates what effects control enhancing mechanisms that are associated with vote differentiation have on dividend payout policy among Swedish listed firms. The data collected for this study is for the period 2005-2007 and the sample consists of 109 companies where 61 of these have shares that are vote differentiated, and the remaining 48 companies have the one share –one vote structure. The variables in the regressions are dividend payout ratio, a dummy for vote differentiation, growth in earnings, size, Tobin’s Q and ownership structure. Three separate hypotheses are applied for reaching a scientific answer to the thesis question. The results indicate that dividend payout policy is significantly negatively affected by the presence of vote differentiation and that vote concentration among the five largest shareholders is generally higher in such firms. The results do also indicate that dividend payout is determined by firm size, growth and investment performance which are in line with earlier studies. From the results, parallels have been drawn between investment performance, ownership concentration, vote differentiation and dividend payout policy. Firms that have vote differentiated shares tend to overinvest instead of paying out dividends when this presumably would be a more appropriate decision considering the aspect of efficiency. As a final conclusion based on the findings, the thesis confirms the argument on that vote differentiating among shares should be reconsidered for better reforms.
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Zhang, Haiyan. "Corporate governance and dividend policy : a comparison of Chinese firms listed in Hong Kong and in the mainland /." View abstract or full-text, 2005. http://library.ust.hk/cgi/db/thesis.pl?ACCT%202005%20ZHANG.
Full text
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Huang, Shih-Yun. "Real investment and dividend policy in a dynamic stochastic general equilibrium (DSGE) model : corporate finance at an aggregate level through DSGE models." Thesis, University of Bradford, 2010. http://hdl.handle.net/10454/5440.
Full textAbstract:
In this thesis, I take a theoretical dynamic stochastic general equilibrium (DSGE) approach to investigate optimal aggregate dividend policy. I make the following contribution: 1. I extend the standard DSGE model to incorporate a residual dividend policy, external financing and default and find that simulated optimal aggregate payouts are much more volatile than the observed data when other variables are close to the values observed in the data. 2. I examine the sensitivity of optimal aggregate dividend policy to the level of the representative agent's habit motive. My results show that, when the habit motive gets stronger, the volatility of optimal aggregate payouts increases while the volatility of aggregate consumption decreases. This is consistent with the hypothesis that investors use cash payouts from well diversified portfolios to help smooth consumption. 3. I demonstrate that the variability of optimal aggregate payouts is sensitive to capital adjustment costs. My simulated results show that costly frictions from changing the capital base of the firm cause optimal aggregate dividends and real investments to be smooth and share prices to be volatile. This finding is consistent with prior empirical observations. 4. I run simulations that support the hypothesis that optimal aggregate dividend policy is similar when the representative firm is risk averse to when it has capital adjustment costs. In both cases, optimal aggregate dividends volatility is very low. 5. In all calibrated DSGE models, apart from case 4, optimal aggregate payouts are found to be countercyclical. This supports the hypothesis that corporations prefer to hold more free cash flows for potential investment opportunities instead of paying dividends when the economy is booming, but is inconsistent with observed data. Keywords: Dynamic Stochastic General Equilibrium (DSGE), real business cycle, utility function, habits, dividends.
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Alharbi, Abdulrahman. "Dividend Policy in a Frontier Market and Sector Equity Traded Funds in the United States." ScholarWorks@UNO, 2017. http://scholarworks.uno.edu/td/2371.
Full textAbstract:
In chapter 1, we examine the nature and scale of the relationship between returns on sector Equity Traded Funds (ETFs) and their volatility. We discuss the source and direction of the effect between returns and risk and whether behavioral biases are prominent among sector ETFs. The study has implications for financial sector practitioners and investors, as it provides more information about the risk in sector ETF and whether that risk differs from that of other investment instruments. To this end, we test three hypotheses based on the relevant literature on volatility and returns: the leverage effect hypothesis, feedback hypothesis, and behavioral biases in assets pricing. We employ two measures of volatility in this chapter; specifically, we use the GARCH (1, 1) model and the Range-based autoregressive model.
Chapter 2 presents an examination of the factors that affect payout policy in a frontier market. MSCI classifies the Saudi stock exchange as a large frontier market and proposes to be reclassified as an emerging market by next year. The Saudi market is characterized by the high governmental influence and dominance of individual traders on daily transactions. By studying the 12-year panel data, we assess the effect government, board characteristics, social norms and major shareholder on Saudi firms’ decision to distribute dividends. The government presence and investor taste, especially for Islamic-compliant firms, are discussed. This chapter provides valuable information for investors and practitioners by identifying the factors that should be considered when making finance and investment decisions in frontier markets.
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Mutenheri, Enard. "The determinants of corporate financial policy in Zimbabwe : empirical evidence from company panel data." Thesis, Loughborough University, 2003. https://dspace.lboro.ac.uk/2134/7578.
Full textAbstract:
This thesis examines the patterns and determinants of corporate financial policy (capital structure and dividend policy) in Zimbabwe. In particular it investigates various aspects of corporate financial behaviour in an emerging market; the evolution of corporate financial structure and dividend payout ratio over the past 25 years (1975-1999), the impact of the reform programme (introduced in 1992) on firm characteristics, the corporate financing patterns during the period 1990-1999, the determinants of corporate capital structures and dividend policy and the interaction between corporate financing and dividend policy decisions. The main results that emerge from the analysis suggest that (i) the debt ratio for the Zimbabwean corporate sector significantly increased after the reform (ii) the Zimbabwean corporate sector mainly depends on external finance (75 % of total financing) especially short-term finance, which contributes 52 % of total financing. Furthermore, the results support the following hypotheses (i) the pecking order hypothesis that firms prefer internal financing to external financing, (ii) the trade-off hypothesis that non-debt tax shields reduce the expected gains from leverage, (iii) firms use liquid assets to finance investments, (iv) the agency cost hypothesis that increasing managerial ownership helps to align the interests of managers and shareholders and therefore reduces the role of debt as an agency-conflict mitigating factor, (v) large firms have lower bankruptcy costs and therefore can support more debt than smaller firms, (vi) debt service limits the amount of cash paid out as dividends, and (vii) high growth firms rely on external finance more than low growth firms (viii) high growth and firms have low payout ratios (iv) Cash flows and institutional investors increase the likelihood that firms will pay dividends (v) capital structure and dividend policy decisions are interdependent and highly leveraged firms have low payout ratios.
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te, Velde Rob. "The Influence of Corporate Governance Quality and Growth Opportunities on Firms’ Payout Policy." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2019. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-377179.
Full textAbstract:
This paper examines the effect of corporate governance quality on firms’ payout policy. We analyze a global sample of 3,904 firms (25,773 firm-year observations) over the period 2002-2016. I find that corporate governance quality is positively related to payout ratios, consistent with the perspective of the free cash flow hypothesis (Jensen, 1986) and the outcome dividend model (LLSV, 2000). Moreover, consistent with findings of Mitton (2004) the positive relationship between firm’s corporate governance and dividend payout mainly holds for countries with strong shareholder or creditor protection, suggesting that firm-level corporate governance and country-level protection rights are complements rather than substitutes. This study also shows that firms with high corporate governance quality are less likely to disburse cash to their shareholders when controlling for country-level shareholder rights. Furthermore, this study contributes to the existing literature by investigating share repurchases and finds that well governed firms distribute less cash through share repurchases and total payout when they experience high growth opportunities. Moreover, the results suggest that countries that experience stronger shareholder and creditor rights reduce the positive impact that corporate governance quality has on share repurchases and total payout.
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Березіна, О. Ю. "Дивідендна політика акціонерного банку в системі факторів якості корпоративного управління." Thesis, Українська академія банківської справи Національного банку України, 2008. http://essuir.sumdu.edu.ua/handle/123456789/61586.
Full textAbstract:
Балансовий капітал банківської системи України зріс на 9,7 млрд. грн.
(на 14 %) і станом на 1 квітня 2008 року складав 79,3 млрд. грн.
(зростання відбулося здебільшого за рахунок збільшення обсягу ста-
тутного капіталу на 6,8 млрд. грн. (на 16 %)).
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Rajaiya, Harshit. "Three Essays in Corporate and Entrepreneurial Finance:." Thesis, Boston College, 2020. http://hdl.handle.net/2345/bc-ir:108781.
Full textAbstract:
Thesis advisor: Thomas ChemmanurMy dissertation consists of three chapters. In the first chapter, I analyze the impact of firms' innovation success on their corporate financial policies. I hypothesize that innovation success reduces the information asymmetry facing firms and, through the information channel, affects their capital structure and dividend policies. I measure innovation success using the quantity and quality of patents. I show that firms with higher innovation success face lower information asymmetry, measured using analyst coverage, dispersion, and forecast error. Further, I show that firms with higher innovation success have lower leverage ratios; have a greater propensity to issue equity rather than debt; and have lower dividend payout ratios. I establish causality using instrumental variable analyses with patent examiner leniency as an instrument for patent grants. In the second chapter, co-authored with Thomas Chemmanur, Xuan Tian, and Qianqian Yu, we analyze the impact of trademarks in entrepreneurial firms' success. We hypothesize that trademarks play two economically important roles for entrepreneurial firms: a “protective” role, leading to better product market performance; and an “informational” role, signaling higher firm quality to investors. We develop testable hypotheses based on the above two roles of trademarks, relating the trademarks held by private firms to the characteristics of venture capital (VC) investment in them, their probability of successful exit, their valuations at their initial public offering (IPO) and in the immediate secondary market; institutional investor IPO participation; post-IPO information asymmetry; and post-IPO operating performance. We test these hypotheses using a large and unique dataset of trademarks held by VC-backed private firms. We establish causality using an instrumental variable (IV) analysis using trademark examiner leniency as the instrument. For private firms, we find that the number of trademarks held by the firm is positively related to the total amount invested by VCs and negatively related to the extent of staging by VCs. We show that the number of trademarks held by a firm increases its probability of successful exit (IPOs or acquisitions). Further, for the subsample of VC-backed firms going public, we show that the number of trademarks held by the firm leads to higher IPO and immediate secondary market firm valuations; greater IPO participation by institutional investors; a lower extent of information asymmetry in the equity market post-IPO; and better post-IPO operating performance. In the third chapter, co-authored with Thomas Chemmanur and Jinfei Sheng, we develop testable hypotheses and empirically analyze the effects of outside investors having access to soft information such as online employee ratings from the Glassdoor website on firms' financing and investment policies. We find that higher online employee ratings are associated with larger equity issue announcement effects; a greater propensity to have positive announcement effects and to issue equity rather than debt to raise external financing; higher investment expenditures; greater equity issue participation by institutional investors; and better long-run post-issue operating performance. We establish causality using a difference-in-differences methodology relying on the staggered adoption of anti-SLAPP laws across U.S. states
Thesis (PhD) — Boston College, 2020
Submitted to: Boston College. Carroll School of Management
Discipline: Finance
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"Corporate dividend policy." Chinese University of Hong Kong, 1992. http://library.cuhk.edu.hk/record=b5887126.
Full textAbstract:
by Yeung Yu-Man.Thesis (M.B.A.)--Chinese University of Hong Kong, 1992.
Includes bibliographical references (leaves 62-64).
ABSTRACT --- p.ii
ACKNOWLEGEMENTS --- p.iv
TABLE OF CONTENTS --- p.v
LIST OF TABLES --- p.vii
CHAPTER
Chapter I. --- INTRODUCTION --- p.1
Chapter 1.1 --- Dividends Come in Many Forms --- p.2
Chapter 1.2 --- How Do Companies Decide on Dividend Payments ？ --- p.3
Chapter 1.3 --- Limitation on Dividend Payments --- p.3
Chapter 1.4 --- The Analytical Approach --- p.5
Chapter II. --- EMPIRICAL LITERATURE REVIEW --- p.7
Chapter 2.1 --- Lintner's Model --- p.7
Chapter 2.1.1 --- Stability of Dividend Rate --- p.8
Chapter 2.1.2 --- Stockholders ' Needs and Expectations --- p.9
Chapter 2.1.3 --- Earnings --- p.10
Chapter 2.1.4 --- Principal Considerations in Dividend Decisions --- p.10
Chapter 2.1.5 --- Partial Adjustment Model --- p.11
Chapter 2.2 --- Fama and Babiak's Empirical Analysis on Dividend Policy --- p.13
Chapter 2.3 --- Empirical Results for the Hong Kong Market --- p.15
Chapter 2.4 --- Miller and Modigliani's Model --- p.17
Chapter 2.4.1 --- No Agency Cost --- p.17
Chapter 2.4.2 --- No Tax --- p.17
Chapter 2.4.3 --- Full Information --- p.18
Chapter 2.4.4 --- No Transformation Cost --- p.18
Chapter 2.4.5 --- Independent Investment and Financing Decisions --- p.18
Chapter 2.4.6 --- Summary of M & M Theory [1961] --- p.18
Chapter 2.4.7 --- Other Considerations --- p.20
Chapter 2.5 --- The Information Contents of Dividends --- p.20
Chapter III. --- METHODOLOGY --- p.22
Chapter 3.1 --- Cash Dividend Policy for Hong Kong Market --- p.22
Chapter 3.2 --- Stock Dividends and Stock Splits --- p.23
Chapter 3.3 --- Cash Dividend Payment Practices --- p.25
Chapter 3.3.1 --- A Preliminary Test on Dividends and Distributed Lags --- p.26
Chapter 3.3.2 --- Initial Tests of Lintner's Model --- p.26
Chapter 3.3.3 --- Tests of the Lag Structure . --- p.27
Chapter IV. --- FINDINGS --- p.28
Chapter 4.1 --- Cash Dividend Policy for Hong Kong Market --- p.28
Chapter 4.1.1 --- Background Information --- p.28
Chapter 4.1.2 --- Principal Considerations in Dividend Decisions --- p.30
Chapter 4.1.3 --- Other Influences on Dividend Decisions --- p.31
Chapter 4.1.4 --- Earnings --- p.33
Chapter 4.1.5 --- Regularity of Payment --- p.36
Chapter 4.1.6 --- Availability of Cash --- p.37
Chapter 4.1.7 --- Stability of Rate and Dividend Growth --- p.39
Chapter 4.1.8 --- Stockholders' Needs and Expectations --- p.40
Chapter 4.2 --- Stock Dividends and Stock Splits . . . --- p.41
Chapter 4.2.1 --- Reasons for Stock Dividends --- p.41
Chapter 4.2.2 --- Reasons for Stock Splits . . --- p.43
Chapter 4.3 --- Cash Dividend Payment Practices --- p.44
Chapter 4.3.1 --- A Preliminary Test on Dividends and Distributed Lags --- p.44
Chapter 4.3.2 --- Initial Tests of Lintner's Model --- p.48
Chapter 4.3.3 --- Tests of the Lag Structure . --- p.51
Chapter V. --- CONCLUSIONS --- p.54
APPENDIX --- p.56
BIBLIOGRAPHY --- p.62
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Hung, Hsiang-Shih. "Corporate Governance and Dividend Policy." 2004. http://www.cetd.com.tw/ec/thesisdetail.aspx?etdun=U0001-2007200411130000.
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Hung, Hsiang-Shih, and 洪翔詩. "Corporate Governance and Dividend Policy." Thesis, 2004. http://ndltd.ncl.edu.tw/handle/60436432776121469019.
Full textAbstract:
碩士國立臺灣大學
財務金融學研究所
92
This paper tests two models of dividends in Taiwan during the period of 2000-2002. And the empirical results in Taiwan support the expropriation hypothesis which argues that dividends signal the severity of the conflict between controlling and small shareholder. That is firms with weak corporate governance are associated with fewer cash dividend paying. However, the expropriation phenomenon is not such obvious gauged by deviations from control rights to cash flow rights. But if we replace deviations from control rights to cash flow rights with deviations from the percentage of board seats controlling shareholders occupy to cash flow rights, the expropriation by not paying dividends to shareholders becomes significant. This variable is proven to be more representative of conflicting interests between minority and majority shareholders in our regressions and proves controlling shareholders will exert their power in the board of directors to affect corporate dividend policy.
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劉錦如. "Corporate Social Responsibility and Dividend Policy." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/847gcu.
Full textAbstract:
碩士國立彰化師範大學
財務金融技術學系
105
Based on the data of listed companies on the Taiwan Stock Exchange (TWSE) over the period from 2005 to 2015, this master thesis examines the linkage between firm’s engagement in Corporate Social Responsibility (CSR) and corporate dividend policy that is proxied by cash (stock) dividend amount, cash (stock) dividend payout ratio and cash (stock) dividend payout variability. Existing studied has mentioned that CSR has benefit as well as cost on economic consequence of firm, while corporate payout policy involved meeting stockholder’s demanding for return and investment expenditure in the future, firm with enough corporate resource tends to payout its cash. Thus, CSR may affect firm’s payout policy through its effect on enhancing or destroying the value of a firm. Empirical result shows that firms with superior performance on CSR tend to pay more dividends than low-CSR-performance firms. This is consistent with the existing literature that socially responsible firms may use the dividend policy to manage the agency problem from overinvesting on CSR. The evidence also shows that firm with better performance on CSR has more stable on dividend payout, means that socially responsible firm tends to adjust dividends slower than socially irresponsible firms. Better performance on stakeholder’s management and greater dividend payout to stockholder means win-win situation could be achieved.
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Hou, Wen-Lin, and 侯玟伶. "Investor Sentiment and Corporate Dividend Policy." Thesis, 2009. http://ndltd.ncl.edu.tw/handle/84301330267676360729.
Full textAbstract:
碩士國立東華大學
公司理財碩士學位學程
97
The research analyzes the impact of investor sentiment on dividend policy. The recent literature applied the view of cartering theory, liquidity and idiosyncratic risk of stock to explain why the low “propensity to pay dividends” in American. But they can explain the limited part. We think that investor sentiment can explain how managers do the dividend policy well. The research not only examine how investor sentiment affect dividend policy, but considering whether firms that are likely to be more affected by shifts in investor sentiment-newer, smaller, more volatile, unprofitable, with extreme growth potential firms- its dividend policy affected by investor sentiment will be more apparent. The results suggest that the impact of investor sentiment on dividend policy is statistically significant from zero, when the investor sentiment is low, firms are more likely to pay dividends, and firms are newer, smaller, more volatile, unprofitable, with extreme growth potential, its dividend policy affected by nvestor sentiment is more apparent. We also find that firms are likely to be more affected by shifts in investor sentiment, the stock market reaction to their dividend changes more depends on investor sentiment. Furthermore, we find that firms are likely to be more affected by shifts in investor sentiment, its managers do learn from the firm’s own considering investor sentiment experience. If considered the investor sentiment had the great market reaction in last time, will enhance managers do consider the investor sentiment again.
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TUNG, YU-SHAN, and 董玉珊. "Corporate Social Responsibility and Dividend Policy." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/8qkz3d.
Full textAbstract:
碩士國立高雄應用科技大學
財富與稅務管理系碩士在職專班
104
ABSTRACT This thesis examines the relationship between corporate social responsibility (CSR) and dividend policy. Using the survey data made by Comrnon Wealth Magazine during 2007-2014 as the sample of CSR performance. This research also follows Chan et al. (2004) to use five matching-control firms based on market capitalization and book-to-market ratio and consists of 1,224 observations in the study. The empirical results suggest a positive relationship between CSR performance and dividend payout, indicating the firms control the phenomenon of overinvestment in CSR through higher dividend payout. Moreover, the firms with high CSR score or high governance score are also associated with high dividend payout. Furthermore, socially irresponsible firms adjust dividends quicker than socially responsible firms, dividend policy is less stable in low CSR firms than in high CSR firms.
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Wu, Yi-Chen, and 吳羿蓁. "Corporate Governance and Dividend Payout Policy." Thesis, 2018. http://ndltd.ncl.edu.tw/handle/xjpnjm.
Full textAbstract:
碩士國立臺灣大學
財務金融學研究所
106
This paper investigates the relationship between abnormal corporate governance and dividend policy by using the sample of Taiwan’s public firms. Based on the agency theory proposed by La Porta et al. (2000), we consider two controversial hypotheses: the outcome and substitute hypotheses to discuss whether Taiwan’s dividend policy is used to solve agency problem. Different from the traditional corporate governance, we create an “abnormal corporate governance index” by controlling the characteristics of CEOs and firms and see how it affects dividend policy. Our empirical findings show that abnormal corporate governance is negatively correlated to cash dividend policy, which means that our results are consistent with “substitute model”. It can be seen that Taiwan’s dividend policy is more relevant to investment opportunities. The firms with better corporate governance often have lower agency cost and managers tend to use retained earnings to gain more benefit; thus, they will have less dividend payout but more investment opportunities. On the contrary, the firms with worse corporate governance, managers tend to pay dividends to relieve shareholders’ concerns of expropriation.
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Wang, Li-Ting, and 王麗亭. "Corporate Governance, Dividend Policy, Accrual Quality and Corporate Value." Thesis, 2006. http://ndltd.ncl.edu.tw/handle/58524647062609744550.
Full textAbstract:
碩士輔仁大學
會計學系碩士班
94
The thesis examines the relationship among corporate governance structure, cash dividend policy, accrual quality and firm value. The sample consists of observations selected from listed and over-the-counter companies in Taiwan from 1998 to 2004. The empirical results are summarized as follows. 1.As the cash flow rights held by the controlling shareholder increases, both the likelihood of cash dividends payment and the level of cash dividends will get higher. Moreover, the accrual quality will get better. The finding shows that when the ownership of the controlling shareholder gets higher, the incentive effect will dominant, and thus the interest of the controlling shareholder will be more congruent with minor shareholders, in turn it helps for improving the accrual quality of financial statements. 2.If the proportion of seats of the board of directors controlled by the controlling shareholder increases, then the likelihood of cash dividends payment and the level of cash dividends are lower. Further, the accrual quality will get worse. The finding shows that when the board of directors is high affiliated with the controlling shareholder, the entrenchment effect will dominant, and thus the controlling shareholder will exploit minor shareholders’ interests and impair the accrual quality of financial statements. 3.The predicted excess cash dividends arising from corporate governance structure incrementally decrease the cost of equity capital after controlling other variables. In addition, the effect of cash dividends on the firms with worse accrual quality will get stronger. Besides, the predicted excess accrual quality arising from corporate governance structure is negatively correlated with cost of debt. Furthermore, for the firms paying no cash dividends, the predicted excess accrual quality arising from corporate governance structure incrementally decreases the cost of equity capital. 4.For firms with excess cash dividends or accrual quality arising from corporate governance structure, they will have better performance in the future. The finding shows that as firms with better corporate governance mechanisms (they are proxy by the cash flow rights held by the controlling shareholder is higher or the board of directors is not high affiliated with the controlling shareholder) signal positive future operating performance. Overall, our evidences support the views that better corporate governance structure can strengthen cash dividend policy and improve accrual quality, and the predicted excess cash dividends or accrual quality arising from corporate governance structure can be the monitoring role in mitigating the agency problems effectively and thus reduce the cost of capital. In addition, cash dividends and accrual quality are effective signal about future performance of firms. They can be regarded as tools to communicate with stakeholders, and further, to mitigate asymmetric information and agency conflicts.
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HUANG, MEI-FANG, and 黃玫芳. "Top Managers’ Characteristics and Corporate Dividend Policy." Thesis, 2016. http://ndltd.ncl.edu.tw/handle/67913893628437820960.
Full textAbstract:
碩士大葉大學
企業管理學系碩士班
104
This study investigates whether top managers’ characteristics affect corporate dividend policies. The sample firms include publicly listed firms in Taiwan Stock Exchange and Taipei Exchange from 2010 to 2014. We use three variables as proxies of top managers’ characteristics, including whether the top managers’ professional background is related to accounting and finance, whether the top managers get a master or PhD degree, and their seniority in the top management position. Also we use dummy of whether the firms pay dividends and dividend yields as proxies of corporate dividend policies. The empirical results indicate that the higher the top managers’ seniority, the more likely the firms pay the dividends. However, top managers with accounting or financial professional background tend to have low dividend yield. This paper also finds that firm size and profitability have positive impacts on corporate dividend policies.
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Wang, Chia Han, and 王家菡. "Relationships between Corporate Governance and Dividend Policy." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/28217864796514386319.
Full textAbstract:
碩士長庚大學
企業管理研究所
100
In the past literatures, the relationship between corporate governance and dividend policy can be concluded to outcome or substitution models, and we use six dividend policies to investigate the relationship between the corporate governance and dividend policies for the firms in Taiwan from 1996 to 2006. We use panel data model to test which dividend policy is more explainable. Besides, in the past researches, they do not study the cross-section and time-series data at the same time, but we consider not only the cross-section data but also the time-series data. From the empirical results, we have the conclusions as follows: First of all, although the empirical results show that the results of control rights to cash-flow rights are not significant under the six deviation policies, they all support the substitution model. This means firms would pay more dividends while the interest between minority and majority contains more conflicting. Secondly, cash dividends payout is the most significant, because it could reflect actual situation of growth of company. Finally, Stock dividend multiply price is more significant to explain the relationship between corporate governance and dividends policy.
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Chen, Szu-Yuan, and 陳思源. "Executive Compensation, Corporate Governance, and Cash Dividend Policy." Thesis, 2009. http://ndltd.ncl.edu.tw/handle/05876084801438823861.
Full textAbstract:
碩士國立東華大學
公司理財碩士學位學程
97
The purpose of this study is to investigate how the structure of executives’ compensation and the corporate governances affects cash dividend policy based on the data from listed companies in Taiwan stock exchange market during 2004 to 2007. Family controlled firms display different governance culture and monitoring mechanism than non-family controlled firms, so this study further investigates the difference between them. The empirical results we document are below: (1)Executive compensation is associated with higher dividend payouts. This result indicate better aligning the interests of management and shareholders, could result in a higher level of dividend payouts. (2)Blockholders’ ownership concentration is associated with higher dividend payouts. (3)Higher active institutional investors’ ownership results in higher dividend payouts. (4)Independent board membership affects higher dividend payouts. Higher Independent board members could improve board’s monitoring mechanism and result in higher dividend payouts to protect minority shareholders’ interest. (5)In the family controlled firms, higher blockholders’ ownership, active institutional investors and independent board membership could result in higher dividend payouts. (6)Executive compensation and managerial stock ownership are associated with higher dividend payouts, in the non-family controlled firms. These results indicate that firms apply managerial incentives to relieve agency problems when making dividend policy decision.
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Yeh, Ying-Chao, and 葉穎超. "The Influence of Dividend Policy on Corporate Growth." Thesis, 2013. http://ndltd.ncl.edu.tw/handle/77031391282198310924.
Full textAbstract:
碩士國立中山大學
企業管理學系研究所
101
In the past, most of domestic scholars research the relation between dividend policy and corporate growth, they all regard corporate growth as one of company''s characteristics and the explanation parameter of the influence of company''s dividend policy. However when company chooses to retain earnings or pay dividends, its purpose is nothing more than hopes to regard retained earnings as reinvestment fund in the future, or hopes to convey the company operating information. Therefore, this study investigated the influence of dividend policy on corporate growth through empirical evidence and from the point of use retained earnings. In addition this study also investigated industry and laws factors which whether change the influence of dividend policy on corporate growth. The empirical results yield the following finding: 1. Cash dividend had significant negative relationships with growth opportunities and realized growth; Stock dividend and total dividend had significant positive relationships with growth opportunities and realized growth. 2. Industry factor would change the influence of cash dividend and total dividend on growth opportunities, but does not change the influence of stock dividend on growth opportunities. 3. Tax integration factor would change the influence of stock dividend and total dividend on growth opportunities and realized growth, but does not change the influence of cash dividend on t growth opportunities and realized growth.
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Tsou, Sheng-wei, and 鄒聲偉. "Corporate Dividend Policy of MNCs and Domestic Firms." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/26202057719244703708.
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碩士逢甲大學
國際貿易所
100
The dividend policy of company is always a subject which is worth to explore. Past literature about dividend policy is too much, but there is none to explore the relationship between internationalization and dividend policy. That’s the purpose of this research. This research follows the model of Denis and Osobov, uses five different international variables to explore whether the internationalization of firms will affect the propensity of dividend payment and dividend payout ratio or not. The results are as follows： 1. It’s true that the internationalization of firms would affect the propensity of dividend payment. 2. The internationalization of firms would affect the payout ratio too, but there is no evidence robust to support. 3. Taiwan’s MNCs dividend payment would be affect by internationalization, neither do DCs. 4. It’s not so identical that there is a nonlinear relationship between the internationalization of firms and dividend payment, and there is a nonlinear relationship between the internationalization of firms and dividend payout ratio, and it is also not identical. However, we can understand that the internationalization of firms would affect dividend policy, and this result can be a good example for all the pubic firms in Taiwan. Key Word: Dividend policy, Internationalization
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Chen, Guan-Conng, and 陳冠璁. "Non-Controlling Director Influence on Corporate Dividend Policy." Thesis, 2015. http://ndltd.ncl.edu.tw/handle/26663300293730324569.
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碩士中國文化大學
會計學系
103
The electoral system of board has been a major factor affecting corporate governance. But in these years many companies often use the electoral system to control the member of board, so let the situation of long time long-serving chairman and one maker board happenes. Therefore, at 2011 for solve this malpractice. Government modify Company Law Section 198 from the block vote to only can use cumulative voting. Its goal is expected non-controlling interest can be join to the board, and let the board seats become flowing. Then that companies produce more good decisions and become flourish. Dividend policy is one of the major decisions in financial activities, and Rozeff (1982) considered the dividend policy can reduce agency costs and can solve the problem of payment of cash dividends. This study was to investigate the non-controlling interest of directors for corporate dividend policy implications. And expect can made contribution to the corporate governance. The results show that: the more seat of non-controlling interest in the board let cash dividend payment become higher. It’s mean that non-controlling interest is really prefer cash dividends. And the reason is the non-controlling interest are chosen by non-controlling interest shareholders or independent directors. Because the request of outside shareholders is cash dividends (Gordon, 1962; Rozeff, 1982). The independent directors rests with specialized knowledge and experience are preference for cash dividends, too(張雅琳，2004；趙苑婷，2011). Because the cash dividend policy can improve the value of the company, and can have a great help for raise funds. So the independent directors also prefer cash dividend policy.
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Kuo, Yu-Chen, and 郭宇晨. "Impacts of Corporate Social Responsibility on Dividend Policy." Thesis, 2019. http://ndltd.ncl.edu.tw/handle/h276t6.
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碩士國立臺灣科技大學
企業管理系
107
Corporate actions in social and environmental responsibility are developing due to global changes. In addition to engaging in charitable activities and reducing environmental impact, the way companies are promoting sustainable development is also extremely important. Most of the previous research has focused on value creation associated with high levels of corporate social responsibility (CSR) involvement. However, this trend has now begun to focus on studying and explaining the impact of CSR participation on wealth distribution. The motivation and purpose of this research are to investigate the impact of Taiwan's CSR on dividend policy. Based on agency theory and signaling theory, using 2,942 annual observations of listed companies from 2013 to 2017 collected by the TEJ Taiwan Economic News as well as 8 CSR Dimension scores to evaluate the company's CSR, the study employed the Least Squares Regression to analyze and showed that companies with a high level of CSR will pay higher dividends. This result also showed that CSR companies are not only responsible for society in the process of creating wealth, but also in the distribution of wealth creation.
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"Essays in Corporate Policy." Doctoral diss., 2015. http://hdl.handle.net/2286/R.I.30057.
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abstract: This dissertation consists of two essays on corporate policy. The first chapter analyzes whether being labeled a “growth” firm or a “value” firm affects the firm’s dividend policy. I focus on the dividend policy because of its discretionary nature and the link to investor demand. To address endogeneity concerns, I use regression discontinuity design around the threshold to assign firms to each category. The results show that “value” firms have a significantly higher dividend payout - about four percentage points - than growth firms. This approach establishes a causal link between firm “growth/value” labels and dividend policy.
The second chapter develops investment policy model which associated with du- ration of cash flow. Firms are doing their business by operating a portfolio of projects that have various duration, and the duration of the project portfolio generates dif- ferent duration of cash flow stream. By assuming the duration of cash flow as a firm specific characteristic, this paper analyzes how the duration of cash flow affects firms’ investment decision. I develop a model of investment, external finance, and savings to characterize how firms’ decision is affected by the duration of cash flow. Firms maximize total value of cash flow, while they have to maintain their solvency by paying a fixed cost for the operation. I empirically confirm the positive correlation between duration of cash flow and investment with theoretical support. Financial constraint suffocates the firm when they face solvency issue, so that model with financial constraint shows that the correlation between duration of cash flow and investment is stronger than low financial constraint case.Dissertation/Thesis
Doctoral Dissertation Economics 2015
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Su, Ching-Yi, and 蘇靜怡. "Effects of country and corporate governance on dividend policy." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/r43xws.
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碩士國立東華大學
企業管理學系
96
The objective of this study is to investigate the effects of country and corporate governances on dividend policy. Moreover, the thesis studies that growth opportunity affects the relationship between governance and dividend policy. Therefore, the effects of country and corporate governances on dividend policy also are discussed, when considered company and country growth opportunity. Besides, we also have the interests in that country governance whether is more important to the dividend policy, and which growth opportunity is more important to the dividend policy. According to the study of La Porta et al. (2000), there are two agency models of dividends. One is outcome model and another is substitute model. We apply the data from United States and Chinese stock markets to analyze above issues. From the effect of corporate governance on dividend policy, we found that the Chinese firms’ dividend policy consists with the substitute model and the United States firms’ dividend policy more tends to the outcome model. From the effect of country governance on dividend policy, the regression result shows that it was not apparent consisted with the substitute model. In additional, we consider the company growth opportunity on the effect of corporate governance to dividend policy. The result shows that the Chinese firms consist with the outcome model, but the United States firms are not. The substitute model is considered if country growth opportunity is included into the model. It means that considering the country growth opportunity, the dividend payout of Chinese firms is greater than United States firms. Finally, the empirical result found corporate governance is more important than country governance, and company growth opportunity is more significant regarding to dividend policy.
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Yu, shan-hwa, and 余姍樺. "The Review of Dividend Policy in Taiwan Corporate Law." Thesis, 2008. http://ndltd.ncl.edu.tw/handle/10569839250889145719.
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碩士中原大學
財經法律研究所
96
Dividend policy can show the company’s profit and going and a perfect dividend policy can even draw money from capital market easily. However managers have the discretion over the free cash flow of the company. It will incur agency costs of free cash flow because managers might invest it at below the cost of capital or waste it on organization inefficiencies. So in order to reduce agency costs between shareholders and managers dividend policy still is the best solution. But in Taiwan Corporate Law, managers can make the dividend policy and submit the resolutions on the surplus earning distribution to general meeting of shareholders for its ratification (Company Act § 230). If a company pays dividends and bonuses in violation of the provisions of the preceding article, creditors of the company may request rescission and may also claim for compensation for loss or damage resulted there-from. (Company Act § 233). From the studying of the Company Act, shareholders and creditors have claims over the dividend policy made by managers. But the question is the regulations of the Company Act can effectively encourage managers to make a perfect dividend policy and reduce the agency costs of free cash flow. Otherwise in this thesis I will also compare the EU’s Second Directive (77/91/EEC) with USA legislation and figure out which legislation is adaptable to Taiwan corporate law. By the rising of the hostile takeover, managers can use their discretions over dividend policy as defensive tactics to serve their own interests. This behavior not only increases the conflict of interests but also decrease the value of companies. So in hostile takeover we should rethink the allocation of powers between shareholders and directors to maximize the corporate value.
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Chuang, Ya-Cheng, and 莊雅程. "The Influence of Corporate Governance Quality on Dividend Policy." Thesis, 2012. http://ndltd.ncl.edu.tw/handle/41912585354111802432.
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碩士國立中正大學
企業管理研究所
100
The purpose of this study is to verify whether the quality of corporate governance affects the release of the company's dividend policy or not. Samples were selected from the Taiwan listed companies in manufacturing industry during the year of 2005 to 2010 and 5,422 samples were obtained. In this study, we also take the data from the Taiwan Corporate Governance Association and use Corporate Governance Quality Score (Gov-Score) to identify the quality of corporate governance. The variables of dividend policy include dividend yield, the cash dividends / total asset ratio, and the cash dividends / after-tax net profit margin. Ordinary least squares (OLS) and logistic regression analyses were adopted to explore the correlation between the quality of corporate governance and dividend policy. The empirical results show that： 1.Corporate governance quality has significant impact on the cash dividend yield. 2.Corporate governance quality has significant impact on the ratio of dividend to total assets. 3.Corporate governance quality has significant impact on whether cash dividend was delivered.