Corporate dividend policy revisited

2015 ◽  
Vol 41 (2) ◽  
pp. 126-144 ◽  
Author(s):  
H. Kent Baker ◽  
Rob Weigand
Keyword(s):  
Dividend Policy ◽  
Payout Policy ◽  
Future Research ◽  
Stylized Facts ◽  
Content Type ◽  
Dividend Policies ◽  
Popular View ◽  
The Stability ◽  
Practical Implications ◽  
Over Time

Purpose – The purpose of this paper is to provide an overview and synthesis of some important literature on dividend policy, chronicle changing perspectives and trends, provide stylized facts, offer practical implications, and suggest avenues for future research. Design/methodology/approach – The authors provide a survey of literature surveys with a focus on insights for paying cash dividends. Findings – The analysis of literature surveys on dividend policy provides some stylized facts. For example, US evidence indicates that the importance of cash dividends as a part of investors’ total returns has declined over time. Share repurchases now play an increasingly important role in payout policy in countries permitting stock buybacks. The popular view is that dividend policy is important, as evidenced by the large amount of money involved and the attention that firms, security analysts, and investors give to dividends. Firms tend to follow a managed dividend policy rather than a residual dividend policy, which involves paying dividends from earnings left over after meeting investment needs while maintaining its target capital structure. Certain determinants of cash dividends are consistently important over time in shaping actual dividend policies including the stability of past dividends and current and anticipated earnings. No universal set of factors is appropriate for all firms because dividend policy is sensitive to numerous factors including firm characteristics, market characteristics, and substitute forms of dividends. Universal or one-size-fits-all theories or explanations for why companies pay dividends are too simplistic. Practical implications – The dividend puzzle remains an important topic in modern finance. Originality/value – This is the first a survey of literature surveys on cash dividends.

Institutional perspectives of dividend policy in India

2018 ◽  
Vol 10 (3) ◽  
pp. 324-342 ◽  
Author(s):  
H. Kent Baker ◽  
Sujata Kapoor ◽  
Imad Jabbouri
Keyword(s):  
Institutional Investors ◽  
Dividend Policy ◽  
Mail Survey ◽  
Active Monitoring ◽  
Content Type ◽  
Dividend Policies ◽  
Dividend Payments ◽  
New Evidence ◽  
Level Of Importance ◽  
Practical Implications

Purpose This study aims to examine dividend policy from the perspective of institutional investors in India. It focuses on the level of importance these investors attach to the dividend policy of their investee firms, the level of influence they exercise in shaping such firms’ dividend policies and their reactions to changes in dividends. This study also reports how institutional investors view various explanations for paying dividends. Design/methodology/approach A mail survey provides a profile of respondents and their firms, as well as responses to 29 closed-ended questions involving various explanations for paying dividends and 22 closed-ended questions on various dividend issues. Findings The evidence shows that Indian institutional investors attach substantial importance to dividend policy and prefer high dividend payments. Their reactions to dividend changes are asymmetric. Taxes are a major driver for why they seek dividends, whereas liquidity needs to play little role in shaping their preferences. The two most commonly used methods of active monitoring are selling shares and communicating concerns to investee companies. Research limitations/implications The number of responses limits the ability to test for statistically significant differences between the various competing hypotheses. Practical implications The findings support multiple explanations for paying cash dividends and provide new evidence supporting the positive relation between inflation and dividend payments. Originality/value This study provides the first survey evidence on the views of institutional investors on dividend policy in India.

Dividend payout policy of Islamic vs conventional banks: case of Saudi Arabia

2017 ◽  
Vol 10 (1) ◽  
pp. 117-128 ◽  
Author(s):  
Lama Tarek Al-Kayed
Keyword(s):  
Saudi Arabia ◽  
Boards Of Directors ◽  
Dividend Policy ◽  
Data Availability ◽  
Future Research ◽  
Islamic Banks ◽  
Content Type ◽  
Dividend Payments ◽  
Conventional Banks ◽  
Practical Implications

Purpose This paper aims to identify the factors that affect dividend payments for Saudi Arabian Islamic and conventional banks and to test whether the factors that affect Islamic banks’ dividend policy differ from the factors affecting conventional banks’ dividends. Design/methodology/approach Panel regression was run on data for six Islamic banks and six conventional banks. Findings The paper found that profitability, lagged dividends and leverage are all significant determinants of Islamic Banks’ dividend policy. Lintner’s (1956) model applies to Islamic bank’s dividend policy, as Islamic banks who payout dividends commit to their payments. All factors included in the study (profitability, liquidity, leverage, growth and lagged dividend) are found to be significant determinants of conventional banks’ dividend payments. Research limitations/implications Future research should include ownership variables in the regression to test the agency theory regarding dividends. Ownership variables were not included in the study because of data availability issues. Practical implications The results of this study have practical implications for analysts, investors and regulators. For Islamic banks to compete in the local and global deposit markets, their management must carefully decide upon their dividend policy. As conventional banks are distributing stable dividends, it is time for Islamic banks to plan for a stable dividend policy to send positive signals to the market. As newcomers to the market Islamic banks should avoid spontaneous and inconsistent dividend distributions that do not carry any signals to the market. It will be difficult for Islamic banks to raise capital or attract investors because of their lower dividend yields compared to conventional banks. Boards of directors of Islamic banks should use dividends as an agency monitoring device; large-scale retention of earnings encourages behaviour by managers that does not maximize shareholder value. Dividends, then, are a valuable financial tool for these firms because they help firms avoid asset/capital structures that give managers wide discretion to make value-reducing investments. Originality/value This is the first study – up to the author’s knowledge – to investigate the financial institutions (banks) dividend policy in Saudi Arabia.

The outcomes of providing lean training to strategic suppliers: a Swedish case study

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ewout Reitsma ◽  
Peter Manfredsson ◽  
Per Hilletofth ◽  
Roy Andersson
Keyword(s):  
Training Program ◽  
Design Methodology ◽  
Potential Outcomes ◽  
Future Research ◽  
Structured Interviews ◽  
Content Type ◽  
Lean Practices ◽  
Practical Implications ◽  
Over Time

PurposeThe aim of this study is to investigate the outcomes of a leading Swedish truck maker (referred to as “TruckCo” for confidentiality reasons) providing lean training to its strategic suppliers.Design/methodology/approachA single in-depth case study is conducted, using on-site semi-structured interviews with representatives from TruckCo and its suppliers for data collection.FindingsThe lean training program resulted in four main outcomes. First, financially unstable suppliers were less receptive to the lean training program than financially stable suppliers. Second, the suppliers became easier to collaborate with over time, through improving their internal ways of working and thus creating more trust in terms of reliability. Third, the suppliers improved their ability to identify possible problems that could jeopardize deliveries. Fourth and finally, the suppliers improved their delivery precision.Research limitations/implicationsOne limitation of this study is that its findings are based on a single in-depth case study. Another limitation is that all the involved companies originate from Sweden. These limitations should be considered in attempts to replicate or further test the reported findings.Practical implicationsThis study provides insights into how a manufacturer can teach lean management to suppliers, and how suppliers can be involved in a manufacturer's journey towards a leaner supply chain. Furthermore, the study reflects more generally on the potential outcomes of a manufacturer providing lean training to suppliers.Originality/valueThis study highlights both TruckCo's and the suppliers' view of the outcomes of the lean training program and discusses how different suppliers adopt the taught lean practices. Avenues for future research are proposed as well.

The onset of police misconduct

2014 ◽  
Vol 37 (2) ◽  
pp. 285-304 ◽  
Author(s):  
Christopher Harris
Keyword(s):  
Military Service ◽  
Design Methodology ◽  
Police Department ◽  
Future Research ◽  
Police Misconduct ◽  
Substantial Portion ◽  
Data Set ◽  
Content Type ◽  
Practical Implications ◽  
Over Time

Purpose – The purpose of this paper is to investigate the factors which contribute to, or mitigate against, both the likelihood and timing of the onset of police misconduct. Design/methodology/approach – Research hypotheses were tested examining the first personnel complaint filed against officers, using both all complaints and only substantiated complaints, from data collected on a large cohort of officers followed over a substantial portion of their careers. Findings – Black officers and those exhibiting poor academy performance were at an increased likelihood of onset when compared to white and Hispanic officers and those who did better in the academy, while having a college degree lowered this likelihood. Officers whose first complaints were filed by citizens, and officers working certain patrol zones had quicker onset times. Those officers whose first complaint was related to service, as well as officers with prior military service, had longer onset times. Research limitations/implications – This study relies on personnel complaints to measure onset, was conducted in a very large police department, and does not include arrest data on officers over time. Practical implications – Onset occurs early in officers’ careers. Some factors are consistent across complaint types, while others depend on whether all complaints or only substantiated complaints are used to measure onset, which suggests that future research should consider carefully which measure they employ. Originality/value – This study employs a longitudinal data set which follows a cohort of officers from the start of their careers, and is thus ideal for exploring the onset of misconduct.

Dividend policy following mergers and acquisitions: US evidence

2016 ◽  
Vol 42 (11) ◽  
pp. 1073-1090 ◽  
Author(s):  
Sébastien Dereeper ◽  
Aymen Turki
Keyword(s):  
Mergers And Acquisitions ◽  
Dividend Policy ◽  
Dividend Yield ◽  
Target Firm ◽  
Content Type ◽  
Dividend Policies ◽  
Target Firms ◽  
Acquisition Announcements ◽  
New Evidence ◽  
Practical Implications

Purpose The purpose of this paper is to address whether the past dividend policy of target firm impacts dividend policies following US mergers and acquisitions (M&A). Design/methodology/approach The authors use the catering theory as a theoretical approach to test dividend change after a merger-acquisition. For the empirical design, dividend policy is captured using dividend status, payout ratio and dividend yield, and specifications are estimated using Probit and OLS models. Findings The data indicate that dividend policy of the target affects dividend policy of the combined entity in cases of stock-based deals. This result provides support for catering theory, which maintains that managers of acquirers adjust dividend policies following transactions to cater to target shareholders’ preferences. Research limitations/implications Although the tests suggest significant results using dividend status and payout ratio as measures of dividend, the authors do not find a similar effect for dividend yield. Practical implications Financial analysts evaluating merger-acquisition announcements may wish to predict the dividend policy following stock-based deals as they project the likely impact of past dividend policies of target firms. The results are also likely to be useful to investors. Originality/value The paper presents new evidence about dividend policy following M&A. To the authors’ knowledge, this is the first study that examines how an acquirer’s dividend policy is affected by an acquisition.

A heavy work investment typology: a biopsychosocial framework

2013 ◽  
Vol 29 (1) ◽  
pp. 81-99 ◽  
Author(s):  
Marina Astakhova ◽  
Mary Hogue
Keyword(s):  
Design Methodology ◽  
Biopsychosocial Model ◽  
Organizational Outcomes ◽  
Future Research ◽  
Positive Outcomes ◽  
Content Type ◽  
Heavy Work ◽  
The Stability ◽  
Practical Implications ◽  
Unique Individual

Purpose – The purpose of this paper is to apply a biopsychosocial model to develop an integrated typology of heavy work investment (HWI) behaviors. Design/methodology/approach – The paper follows an inductive approach to theory building in which we review relevant constructs, categorize those constructs, and outline the relationships among them. Findings – The paper provides a theoretically grounded typology of HWI that distinguishes three general types of HWI (workaholic HWI, situational HWI, and pseudo HWI) and nine corresponding HWI manifestations. It is suggested that various forms of HWI differ in nature according to the joint interplay of varying strengths of biological, psychological, and social influences. The paper also demonstrates how the typology can be applied to predict unique individual and organizational outcomes associated with each HWI sub-type. Research limitations/implications – The paper offers a unified strong foundation for developing HWI measures. It offers a direction for future research that will examine antecedents and outcomes of the nine sub-types. It provokes the examination of the “stability” of each HWI manifestation over time by including a temporal component into the biopsychosocial framework. Practical implications – This research will help practitioners differentiate among HWI manifestations to effectively sustain positive outcomes and proactively evade negative outcomes associated with HWI. Originality/value – To date, various manifestations of HWI and workaholism have been discussed in the literature with little unification across studies. In this paper, the authors respond to the call for a theoretically grounded approach that will provide unifying explanations to why and how HWI manifests.

scholarly journals Advantages and potential challenges of data management in e-maintenance

2019 ◽  
Vol 25 (3) ◽  
pp. 378-396 ◽  
Author(s):  
Arian Razmi-Farooji ◽  
Hanna Kropsu-Vehkaperä ◽  
Janne Härkönen ◽  
Harri Haapasalo
Keyword(s):  
Data Management ◽  
Design Methodology ◽  
Management Practices ◽  
Future Research ◽  
Conceptual Approach ◽  
Content Type ◽  
Different Types ◽  
Maintenance Systems ◽  
Industry Leader ◽  
Practical Implications

Purpose The purpose of this paper is twofold: first, to understand data management challenges in e-maintenance systems from a holistically viewpoint through summarizing the earlier scattered research in the field, and second, to present a conceptual approach for addressing these challenges in practice. Design/methodology/approach The study is realized as a combination of a literature review and by the means of analyzing the practices on an industry leader in manufacturing and maintenance services. Findings This research provides a general understanding over data management challenges in e-maintenance and summarizes their associated proposed solutions. In addition, this paper lists and exemplifies different types and sources of data which can be collected in e-maintenance, across different organizational levels. Analyzing the data management practices of an e-maintenance industry leader provides a conceptual approach to address identified challenges in practice. Research limitations/implications Since this paper is based on studying the practices of a single company, it might be limited to generalize the results. Future research topics can focus on each of mentioned data management challenges and also validate the applicability of presented model in other companies and industries. Practical implications Understanding the e-maintenance-related challenges helps maintenance managers and other involved stakeholders in e-maintenance systems to better solve the challenges. Originality/value The so-far literature on e-maintenance has been studied with narrow focus to data and data management in e-maintenance appears as one of the less studied topics in the literature. This research paper contributes to e-maintenance by highlighting the deficiencies of the discussion surrounding the perspectives of data management in e-maintenance by studying all common data management challenges and listing different types of data which need to be acquired in e-maintenance systems.

How Moroccan institutional investors view dividend policy

2017 ◽  
Vol 43 (12) ◽  
pp. 1332-1347 ◽  
Author(s):  
H. Kent Baker ◽  
Imad Jabbouri
Keyword(s):  
Institutional Investors ◽  
Stock Prices ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Mail Survey ◽  
High Response Rate ◽  
Content Type ◽  
Listed Firms ◽  
Dividend Policies ◽  
Dividend Payments

Purpose The purpose of this paper is to examine how Moroccan institutional investors view dividend policy. It discusses the importance these investors attach to the dividend policy of their investee firms, how much influence they exercise in shaping investee firms’ dividend policies, their reactions to changes in dividends, and their views on various explanations for paying dividends. Design/methodology/approach A mail survey provides a respondent and firm profile and responses to 28 questions involving various explanations for paying dividends and 30 questions on different dividend issues. Findings Institutional investors attach substantial importance to dividend policy and prefer high dividend payments. Although liquidity needs are a major driver, taxes play little role in shaping dividend preferences. Respondents agree with multiple explanations for paying dividends giving the strongest support to catering, bird-in-the-hand, life cycle, signaling, and agency theories. Research limitations/implications Despite a high response rate, the number of respondents limits partitioning the sample and testing for significant differences between different groups. Practical implications The lack of communication between Casablanca Stock Exchange (CSE) listed firms and institutional investors may depress stock prices and increase volatility. The results suggest agency problems and a weak governance environment at the CSE. Originality/value This study documents the importance that institutional investors place on dividend policy, their reactions to changes in their investees’ dividend policy, and the methods used to influence these firms. It extends previous research by reporting the level of support Moroccan institutional investors give to various explanations for paying dividends.

scholarly journals Unemployment and spell duration during the Great Recession in the EU

2015 ◽  
Vol 36 (2) ◽  
pp. 216-235 ◽  
Author(s):  
Carlos Gradín ◽  
Olga Cantó ◽  
Coral del Río
Keyword(s):  
Great Recession ◽  
Negative Impact ◽  
Labour Force ◽  
Future Research ◽  
Cross Sectional ◽  
Content Type ◽  
The Great Recession ◽  
Unemployment Spells ◽  
Practical Implications ◽  
The Eu

Purpose – The purpose of this paper is to analyze the different dynamic characteristics of unemployment in a selected group of European Union countries during the current Great Recession, which had unequal consequences on employment depending on the country considered. Design/methodology/approach – The paper follows Shorrocks’s proposal of a duration-sensitive measure of unemployment, and uses cross-sectional data reported by Eurostat coming from European Labour Force Surveys. Findings – The results add some evidence on the relevance of incorporating spells’ duration in measuring unemployment, finding remarkable differences in unemployment patterns in time among European countries. Research limitations/implications – In this paper unemployment is analyzed for all the labor force. Future research should investigate patterns across specific groups such as young people, women, immigrants or the low skilled. Practical implications – It is generally accepted that the negative impact of unemployment on individual welfare can be very different depending on its duration. However, conventional statistics on unemployment do not adequately capture to what extent the recession is not only increasing the incidence of unemployment but also its severity in terms of duration in time of ongoing unemployment spells. The paper shows an easy and practical way to do it in order to improve the understanding of the unemployment phenomenon, using information usually reported by statistical offices. Originality/value – First, the paper provides a tool for dynamic analysis of unemployment based on reported cross-sectional data. Second, the paper demonstrates the empirical relevance of considering spells’ duration when assessing differences in unemployment across countries or in unemployment trends. This is usually neglected or only partially addressed by most conventional measures of unemployment.

The many faces of suzhi in the Chinese organization and society

2014 ◽  
Vol 5 (1) ◽  
pp. 51-61 ◽  
Author(s):  
Sean Upton-McLaughlin
Keyword(s):  
Chinese Culture ◽  
Mainland China ◽  
Future Research ◽  
Chinese Society ◽  
Content Type ◽  
Mainland Chinese ◽  
Foreign Companies ◽  
Expatriate Managers ◽  
The Many ◽  
Practical Implications

Purpose – The purpose of this paper was to explore the Chinese concept of suzhi and how it relates to behavioral standards within mainland Chinese society and the workplace. The article provides a general discussion of suzhi and its inherent elements to act as a foundation for the education of expatriate managers and executives and for future research by Chinese human resource management (HRM) scholars. Design/methodology/approach – This paper draws on the author's first-hand experience and observations from five years of living and working abroad in mainland China with Chinese companies and executives. Findings – The concept of suzhi in China is a reflection of multiple behavioral standards throughout China. And while suzhi's roots are in ancient Chinese culture and Confucianism, it is also subject to influence and change. Practical implications – The paper may serve as a foundation both for expatriate managers seeking to improve HRM practices in foreign companies in China and future scholars who wish to conduct further research on suzhi and Chinese behavioral standards as they can be applied to the workplace. Originality/value – This is an attempt to enlighten expatriate managers and executives in China on the concept of suzhi and its implication for HRM in China.

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