scholarly journals The impact of innate accruals quality on the future market value moderated by dividend policy

2020 ◽  
Vol 5 (2) ◽  
pp. 269-283
Author(s):  
Muljanto Siladjaja ◽  
Yuli Anwar
Keyword(s):  
Growth Rate ◽  
Dividend Policy ◽  
Market Price ◽  
Market Value ◽  
Future Market ◽  
Observation Data ◽  
Constant Growth Rate ◽  
Content Type ◽  
Accruals Quality ◽  
The Impact

PurposeThe purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.Design/methodology/approachThis research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.FindingsThe results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.Research limitations/implicationsThis test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.Originality/valueBy calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

scholarly journals The Mediating Role of the Capital Structure, Growth Rate, and Dividend Policy in the Relationship Between Return on Equity and Market to Book Value

2020 ◽  
Vol 11 (4) ◽  
pp. 155
Author(s):  
Farouq Altahtamouni ◽  
Reem Matahen ◽  
Amna Qazaq
Keyword(s):  
Growth Rate ◽  
Capital Structure ◽  
Indirect Effect ◽  
Dividend Policy ◽  
Market Value ◽  
Test Model ◽  
Return On Equity ◽  
Book Value ◽  
Mediating Variables ◽  
The Impact

This Study aims to study the indirect effect of profits measured by the return on stockholders' equity for the Jordanian Banks on market value measured by market value to book value for the period from 2008 to 2017. We have applied the indirect impact model to know the ability of capital structure, growth rate and dividend policy as mediating variables to transfer the impact of profits to market value. By using the simple linear analysis and applying indirect effect test model by using the Sobel equation the study reached out to a positive effect of profits on market value with the presence of debt ratio, growth rate and dividend policy as a mediating variables of that relation.

scholarly journals Does the quality of a youth academy impact a football player's market value?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Matteo Balliauw ◽  
Jasper Bosmans ◽  
David Pauwels
Keyword(s):  
Positive Impact ◽  
Market Value ◽  
Future Market ◽  
Content Type ◽  
National Team ◽  
Market Values ◽  
Long Run ◽  
Transfer Fees ◽  
The Impact

PurposeFootball clubs invest in the implementation of scientific insights that improve the quality of youth academies. In the long run, clubs expect their youth academy investments to result in better trained players. The purpose of this paper is to quantify the impact of the attended youth academies' quality on the future market value of a player.Design/methodology/approachA dataset containing 94 players trained in 13 different academies has been constructed. The dataset contains characteristics of the players and information on the quality of their attended academies. The impact of the quality of the attended academies on players' future market values was estimated empirically through multiple regression analysis.FindingsThe quality of a youth academy has a significant positive impact on a player's market value, which in turn is correlated with higher future wages for players and transfer fees for clubs.Research limitations/implicationsClubs are advised to pay sufficient attention to investments in their youth academy. This will eventually lead to better trained players and higher revenues. Players in turn should strive to be part of the best academies that provide good training and the opportunity to become a top-earning player. For policymakers, such as football federations, the results imply that stimulating club investments in academies can lead to better national team performances.Originality/valueThe impact of the quality of a youth academy on an individual professional football player's career has never been quantified in the literature before. To this end, a new variable has been constructed using scientific assessments of youth academies.

scholarly journals PEMETAAN PERILAKU OPPORTUNISTIK TERHADAP PROSPEK PERUSAHAAN MENDATANG MELALUI AKTIVITAS MANIPULASI

2020 ◽  
Vol 3 (2) ◽  
pp. 55-86
Author(s):  
Muljanto Siladjaja ◽  
Markonah Markonah
Keyword(s):  
Financial Reporting ◽  
Dividend Policy ◽  
Market Value ◽  
Discretionary Accruals ◽  
Communication Process ◽  
Good News ◽  
Future Market ◽  
Positive Perception ◽  
Accruals Quality ◽  
The Future

This research have tested out the influence of opportunistics’s behaviour on the fluctuation of market price  by using the manipulation activity later this research provide the mapping between investor’s decision with accruals quality in financial reporting. Because of  the usefullness information financial reporting, so that the investor can done the predicting the future prospect by estimating the growth rate, so it give the feedback to management. The dividend policy can be used s as the communication process, management have proclivity  to diseminate that the prospect had been better in the future. The previous research had tested out the using of accruals had been the negative perspective on investor’s view, so the research have developed out the estimation of discretionary accruals quality as an critical measurement of reducing the opportunistic behaviour. This research used the statistics model by developing the the multiple regresion by developing out  the new indicators for the estimated price, that based on earnings and equity as independent variables. This research have the causal approach by using the purposive sampling on the manufacturing industry by using the real based manipulation activity, so the manipulation activity had been treated as a proxy for grouping the patern of opportunistics behaviour. By using future market value based on earning and equity, the investor have enough capability in detecting the earning management, the investor have calculated the net market value in predicting the company’s prospect in future. In this research have developed out the accruals quality literature by mapping the feedback of interaction in decision tree model with Teorema Bayes. The positive perception of dividend policy show out the investor involvement in formulating cooperate operational policy. The investor’s positive perception can be formed when they found “the good” news by detecting out the negative manipulation and high accruals quality. It has paved the investor out the way in controlling and monitoring the company’s performance for the better prospect one. As novelty, this research have created out the new measurement in earning quality (by modifying a new formula for discretionary accruals quality) and future value market (based on earnings and equity). By re-shaping the new paradigms of the financial statement’ concept as decision usefulness information, this research have created out the predictive model in describing out the investor’s perception  and the asymmetric information area in efficient market.

scholarly journals PEMETAAN PERILAKU OPPORTUNISTIK TERHADAP PROSPEK PERUSAHAAN MENDATANG MELALUI AKTIVITAS MANIPULASI

2020 ◽  
Vol 3 (2) ◽  
pp. 195-226
Author(s):  
Muljanto Siladjaja ◽  
Markonah Markonah
Keyword(s):  
Financial Reporting ◽  
Dividend Policy ◽  
Market Value ◽  
Discretionary Accruals ◽  
Communication Process ◽  
Good News ◽  
Future Market ◽  
Positive Perception ◽  
Accruals Quality ◽  
The Future

This research have tested out the influence of opportunistics’s behaviour on the fluctuation of market price  by using the manipulation activity later this research provide the mapping between investor’s decision with accruals quality in financial reporting. Because of  the usefullness information financial reporting, so that the investor can done the predicting the future prospect by estimating the growth rate, so it give the feedback to management. The dividend policy can be used s as the communication process, management have proclivity  to diseminate that the prospect had been better in the future. The previous research had tested out the using of accruals had been the negative perspective on investor’s view, so the research have developed out the estimation of discretionary accruals quality as an critical measurement of reducing the opportunistic behaviour. This research used the statistics model by developing the the multiple regresion by developing out  the new indicators for the estimated price, that based on earnings and equity as independent variables. This research have the causal approach by using the purposive sampling on the manufacturing industry by using the real based manipulation activity, so the manipulation activity had been treated as a proxy for grouping the patern of opportunistics behaviour. By using future market value based on earning and equity, the investor have enough capability in detecting the earning management, the investor have calculated the net market value in predicting the company’s prospect in future. In this research have developed out the accruals quality literature by mapping the feedback of interaction in decision tree model with Teorema Bayes. The positive perception of dividend policy show out the investor involvement in formulating cooperate operational policy. The investor’s positive perception can be formed when they found “the good” news by detecting out the negative manipulation and high accruals quality. It has paved the investor out the way in controlling and monitoring the company’s performance for the better prospect one. As novelty, this research have created out the new measurement in earning quality (by modifying a new formula for discretionary accruals quality) and future value market (based on earnings and equity). By re-shaping the new paradigms of the financial statement’ concept as decision usefulness information, this research have created out the predictive model in describing out the investor’s perception  and the asymmetric information area in efficient market.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Payout Policy ◽  
Board Composition ◽  
Dividend Payout ◽  
Content Type ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

The impact of blacklists on external deposits: one size does not fit all

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Jonsson ◽  
Jan Pettersson ◽  
Christian Nils Larson ◽  
Nir Artzi
Keyword(s):  
Growth Rate ◽  
Design Methodology ◽  
Descriptive Statistics ◽  
Comparable Data ◽  
Patriot Act ◽  
Content Type ◽  
Probable Impact ◽  
The Impact ◽  
Practical Implications ◽  
Country Specific

Purpose This study aims to measure the impact of the Non-Cooperative Countries and Territories, Organization for Economic Cooperation and Development and US PATRIOT Act Section 311 blacklists on external deposits from blacklisted jurisdictions into BIS reporting countries in 1996–2008, a period when anti-money laundering-related actions were consistently less stringent than post-2010, to see whether they had an effect even absent the threat of sizable financial fines. Design/methodology/approach The study uses descriptive statistics and bivariate and multivariate regressions to analyze the probable impact from blacklists on non-bank external deposits. The country sample is divided into offshore financial centers (OFCs) and non-OFCs and includes 158 non-listed countries. The impact of the blacklists is tested both jointly and individually for the respective blacklists. Findings The authors find mixed impact from jurisdictions being blacklisted on the growth rate of stocks of deposits into BIS reporting countries. Effects are often zero, negative in several cases and positive in some cases. This is consistent with the “stigma effect” and the “stigma paradox” in the literature. An overall impact from blacklisting is difficult to discern. Different blacklists had different effects, and the same blacklist impacted countries differently, illustrating the importance of disaggregating the analysis by individual countries. Research limitations/implications Interpretation of these data is limited by the absence of comparable data on non-resident deposits in blacklisted jurisdictions. Practical implications The impact of a blacklist depends in part on the structure of the listed jurisdictions’ economies, implying that country-specific sanctions may be more effective than blacklists. Originality/value This is one of the very few papers to date to rigorously test the impact of blacklists on external deposits.

How does ownership structure affect the financing and dividend decisions of firm?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tahar Tayachi ◽  
Ahmed Imran Hunjra ◽  
Kirsten Jones ◽  
Rashid Mehmood ◽  
Mamdouh Abdulaziz Saleh Al-Faryan
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Generalized Method Of Moments ◽  
Institutional Ownership ◽  
Agency Cost ◽  
Debt Financing ◽  
Policy Implications ◽  
Managerial Ownership ◽  
Content Type ◽  
The Impact

Purpose Ownership structure deals with internal corporate governance mechanism, which plays important role in minimizing conflict of interests between shareholders and management Ownership structure is an important mechanism that influences the value of firm, financing and dividend decisions. This paper aims to examine the impact of the ownership structures, i.e. managerial ownership, institutional ownership on financing and dividend policy. Design/methodology/approach The authors use panel data of manufacturing firms from both developed and developing countries, and the generalized method of moments (GMM) is applied to analyze the results. The authors collect the data from DataStream for the period of 2010 to 2019. Findings The authors find that managerial ownership and ownership concentration have significant and positive effects on debt financing, but they have significant and negative effects on dividend policy. Institutional ownership shows a positive impact on financing decisions and dividend policy for sample firms. Originality/value This study fills the gap by proving the policy implications for both firms and investors, as managers prefer debt financing, but at the same time try to ignore dividend payment. Therefore, investors may not invest in firms with a higher proportion of managerial ownership and may choose to invest more in institutional ownership, which lowers the agency cost.

Does corporate social responsibility affect dividend policy? Empirical evidence in the French context

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olfa Ben Salah ◽  
Anis Ben Amar
Keyword(s):  
Corporate Social Responsibility ◽  
Panel Data ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Least Squares Method ◽  
Positive Impact ◽  
Alternative Measure ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose The purpose of this paper is to focus on the impact of corporate social responsibility (CSR) on dividend policy in the French context. In addition, the authors seek to determine if the individual components of CSR influence dividend policy. Design/methodology/approach This study uses panel data methodology for a sample of French non-financial firms between 2008 and 2018. Generalized least squares method is used to estimate the models. Findings Using panel data methodology for a sample of 825 observations for the period 2008–2018, this study finds a positive impact of CSR practices on dividend policy. The authors also find that individual components of CSR positively influence dividend policy. To check the robustness of the results, this study further runs a sensitivity tests, including an alternative measure of dividend policy, all of which confirm the findings. Practical implications This study has examined the impact of CSR on dividend policy in France and may have implications for regulatory, investors, analysts and academics. First, the involvement in CSR best practices encourages companies to pay more dividends to investors. Therefore, investors are more motivated to invest in socially responsible firms than socially irresponsible firms. Second, given the association of CSR with the quality of accounting information and financial markets, regulators should step up recommendations relating to the different societal dimensions of CSR. Originality/value While little previous work has focused on the causal link between CSR and dividend policy, this research is the first, to the authors’ knowledge, to have looked at the impact of CSR on dividend policy in France.

scholarly journals The Impact of Dividend Policy on the Shareholders Value of Listed Firms in the Nigerian Petroleum Marketing Industry

2019 ◽  
Vol 8 (2S9) ◽  
pp. 902-905
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Market Price ◽  
Study Data ◽  
Annual Reports ◽  
Current Income ◽  
Listed Firms ◽  
Secondary Sources ◽  
Marketing Firms ◽  
The Impact

Dividend policy is directed towards establishing the proportion of current income that should be retained in the firm and the proportion that should be distributed among its shareholders. This study, therefore, assessed the impact of dividend policy on the value of listed firms in the Nigerian petroleum marketing industry. six firms, out of eight that are quoted on the Nigerian Stock Exchange (NSE) were selected as sample for the study. Data were collected from secondary sources. Annual reports and accounts of the selected firms, daily official lists and facts books of the NSE for the period of 2008-2017 form the source of the data. egression was used in analyzing the data. The findings revealed that payment of dividend by petroleum marketing firms in Nigeria positively influence the market price of their shares. Based on these findings, the study concluded that dividend policy of petroleum marketing firms in Nigeria affects the value of the firms. Based on this conclusion, the study recommends that management need to identify the shareholder’s interest in setting up a dividend policy that would balance their needs and retention for recapitalization to maximize value of the firms.

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