The Effect of Earnings Management on Dividend Policy in Pakistan

2017 ◽  
Vol 9 (1-3) ◽  
Author(s):  
Faiza Saleem ◽  
Mohd Norfian Alifiah
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Annual Data ◽  
Cross Sectional ◽  
Return On Equity ◽  
Dividend Payments ◽  
Oil And Gas Companies ◽  
The Impact

The aim of this study was to find out the impact of earnings management on dividend policy of oil and gas companies listed at the Karachi stock exchange. The study uses annual data of oil and gas companies for the period from 2008 to 2015. The dependent and independent variables are dividend policy and earnings management and the three control variables are leverage, return on equity and firm size. Modified cross sectional Jones model (1995) was used for calculating discretionary accruals which has been used as proxy for earnings management whereas measurement of dividend policy has been proxy by dividend payout. The findings from regression analysis indicate that earnings management has insignificant relationship with dividend policy of selected firms in Pakistan. Financial crisis in the world and economic decline period are the main reasons of this relationship. In the decline period the firms try to increase manipulation in earnings as a result the company starts reducing dividend payments. It is concluded that there are some other factors that may influence the pattern of dividend payment in the firms.

scholarly journals Impact of Dividend Policy on Financial Performance - A Study

2020 ◽  
Vol 4 (1) ◽  
pp. 37-47
Author(s):  
Pradip Kumar Das
Keyword(s):  
Financial Performance ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Strong Association ◽  
Panel Regression ◽  
Return On Assets ◽  
Return On Equity ◽  
Dividend Payments ◽  
Price Earnings Ratio ◽  
The Impact

This study is an attempt to evaluate the impact of dividend policy on financial performance of selected companies registered in Bombay Stock Exchange. The study based on correlation matrix and panel regression model shows that the selected companies do not follow consistent pattern of dividend payments and the association between price earnings ratio and dividend payout ratio is low positive. However, there is strong association between return on assets and return on equity. Hausman Test reveals that random affect model is appropriate thereby indicating that performance of selected companies have momentous impact on dividend policy. Divided policy is still contemplated as one of the complicated areas in corporate finance. The findings from this study are worthwhile to be welcomed into account by the board of managers of companies to demonstrate dividend policy for the companies.

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Assessing determinants of dividend policy of the government-owned companies in Indonesia

2019 ◽  
Vol 61 (5/6) ◽  
pp. 530-541
Author(s):  
Hasan Basri
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Annual Data ◽  
Financial Leverage ◽  
Content Type ◽  
Indonesian Government ◽  
Dividend Payments ◽  
Asset Growth ◽  
The Government

Purpose The purpose of this study is to examine the influences of financial leverage, profitability, the growth of assets and institutional ownerships on the dividend payout of the Indonesian Government-owned companies. Design/methodology/approach Annual data from the period 2007 to 2013 of the 15 listed government-owned companies on the main board in the Indonesian Stock Exchange were analyzed using the multiple regressions. Findings Except for the growth of assets that has an insignificant effect on the dividend policy, the financial leverage and institutional ownerships were documented to have negative and significant influences on the dividend policy, while the profitability has a positive and significant effect on the dividend policy. These findings imply that the profitability, financial leverage and institutional ownership should be considered as the important factors by the Indonesian Government-owned companies in determining their dividend policy. Originality/value Originality in this paper is to establish a model of leverage, profitability, asset growth and institutional ownership of dividend payments of Indonesian Government-owned companies with a panel regression approach.

scholarly journals The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait

2020 ◽  
Vol 11 (5) ◽  
pp. 518 ◽  
Author(s):  
Sinan S. Abbadi ◽  
Murad Y. Abuaddous ◽  
Hanady T. Bataineh ◽  
Abdulla E. Muttairi
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Significant Relation ◽  
Kuwait Stock Exchange ◽  
Jones Model ◽  
Service Sectors ◽  
The Impact

This study has two main objectives. The first is to examine the impact of Earnings Management (EM) on dividend policy for the Kuwait’s industrial and service sectors. The second is to sieve out the possible explanations for the conflicting results regarding this topic. Using Modified Jones Model, a sample of 46 companies listed on the Kuwait Stock Exchange with a total of (184) firm-year observations form the period 2011-2016 reveals an absence of a significant relation between EM and dividend policy. In addition, this paper posits a possible relationship between EM, dividend policy and market maturity. 

scholarly journals Managing Earnings V/S Strategizing Dividends: Sectoral Evidence from Pakistan Stock Exchange

2018 ◽  
Vol 13 (2) ◽  
pp. 218
Author(s):  
Farhan Ahmed ◽  
Javed Ahmed
Keyword(s):  
Dividend Policy ◽  
Oil And Gas ◽  
Positive Impact ◽  
Stock Exchange ◽  
Earning Management ◽  
Annual Data ◽  
Dividend Payment ◽  
Relationship Of ◽  
The Relationship ◽  
Bahasa Indonesia

<p><em>This paper means to inspect the regression between the Price to Book ratio as a proxy for earning management and payout proportion as a proxy to dividend policy. This paper utilizes multivariate analysis to examine the relationship between the price to book ratio and dividend policy. Using 11 years’ annual data from 2006-2016, this paper delivers new confirmation demonstrating that timely payment of dividend has a positive impact on the reputation of the company in the market. Dividend payment boosts up investors’ confidence to invest in the company. This study helps the corporate superintendents and stock financial experts to focus on the relationship of the dividend. No past review has handled the issue of the contingent relationship between the price to book ratio and payout proportion in Pakistani Industry and specifically on cement, food and oil and gas sectors</em>.</p><p><strong>Abstrak dalam Bahasa Indonesia</strong> : Tulisan ini bermaksud untuk meneliti regresi antara Price to Book Ratio sebagai proksi untuk manajemen penghasilan dan proporsi pembayaran sebagai proksi untuk kebijakan dividen.Penelitian ini menggunakan analisis multivariat untuk menguji hubungan antara Price to Book Ratio dan kebijakan dividen. Dengan menggunakan data tahunan selama 11 tahun dari 2006-2016, artikel ini memunculkan suatu konfirmasi yang menunjukkan bahwa pembayaran dividen tepat waktu memiliki dampak positif pada reputasi perusahaan di pasar. Pembayaran dividen meningkatkan kepercayaan investor untuk berinvestasi di perusahaan. Studi ini membantu pengawas perusahaan dan ahli keuangan saham untuk fokus pada hubungan dividen. Belum ada penelitian sebelumnya yang menangani masalah hubungan kontingen antara Price to Book Ratio dan proporsi pembayaran dalam Industri di Pakistan dan khususnya pada sektor semen, pangan dan minyak dan gas.</p>

scholarly journals Impact of ownership structure on dividend policy: Case study of the listed oil and gas companies in Vietnam

2020 ◽  
Vol 6 (08) ◽  
Author(s):  
Hoang duc LE ◽  
Nguyen Tuan Anh ◽  
Nguyen Que Phuong ◽  
Ta Thu Phuong
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
State Ownership ◽  
Financial Policies ◽  
Corporate Capital ◽  
Oil And Gas Companies

The study examines the effect of ownership structure on dividend policy in oil and gas companies listed on the Hanoi Stock Exchange and Ho Chi Minh Stock Exchange. Using panel data from 21 oil and gas companies from 2010 to 2015, we find that dividend payout is negatively related to state ownership and institutional ownership. Our results show that state and institutions have unfavorable ties to cash dividends, indicating signs of corporate capital being expropriated by large shareholders. Moreover, we do not find a significant relation between foreign ownership and dividends. Overall, our findings suggest that oil and gas companies need adjustments in their ownership structure to reduce the concentration of state and institutional ownership to improve the effectiveness of business and financial policies.

scholarly journals Pengaruh Corporate Governance Dan Manajemen Laba Terhadap Kebijakan Dividen

2014 ◽  
Vol 5 (2) ◽  
pp. 151
Author(s):  
Agustina Ratna Dwiati ◽  
Muhammad Bisyri Effendi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Multiple Regression ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Opportunity ◽  
Financial Firms ◽  
Investment Opportunity Set ◽  
The Impact

AbstractThe aim of this study is to test the impact of corporate governance and investment opportunity set toward dividend policy with earnings management as intervening variable. The sample of this study is non-financial firms listed in Indonesia Stock Exchange and also a member of Corporate Governance Perception Index on 2012 and 2013. The method that used in this study is multiple regression. The results showed that company with strong corporate governance really cared about shareholders interests by giving high dividend for them. Meanwhile, earnings management has no impact toward dividend policy.

scholarly journals Audit Firm Type and Sustainability Performance: A Study of Quoted Oil and Gas Marketing Companies in Nigeria

2021 ◽  
Vol 1 (1) ◽  
pp. 55-68
Author(s):  
Aminu Abdullahi ◽  
Oladele Jami’u Olanrewaju ◽  
Moshud Nurudeen Mohammed
Keyword(s):  
Health Care ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Annual Reports ◽  
P Value ◽  
Audit Firm ◽  
Sustainability Performance ◽  
Firm Type ◽  
Oil And Gas Companies ◽  
The Impact

The study specifically examines the impact of audit firm types on sustainability performance effort (health care, employment and education) of quoted oil and gas marketing company in Nigeria. The population of the study consists of all the 13 oil and gas marketing companies quoted on the Nigeria Stock Exchange as at end of the year 2020. Secondary data was sourced from the annual reports and accounts of the sampled companies for the period of  5 years (2016-2020). The dependent variables for the study were Sustainability Performance effort proxied by expenditure on education, employment and health care by the oil and gas companies, while the independent variable was audit firm type. A panel regression model was employed for the analysis as the data cuts across different firms over periods. The results revealed that there is no significant relationship between audit firm type and sustainability performance. This is evident from the p-value of 0.554 which is related to audit firm type and health care. Also, the result of the audit firm and education revealed a p-value of 0.422 and that of audit firm type and employment 0.364. This result provided a basis for rejecting all the hypotheses. The study therefore, recommends that the oil and gas companies should continue to undertake their responsibility in the sustainability performance without any reference to whether they are being audited by any type of audit firm

scholarly journals Financial Leverage and Firms’ Performance: Empirical Investigation of KSE-100 Index

ETIKONOMI ◽  
2018 ◽  
Vol 17 (1) ◽  
pp. 45-56 ◽  
Author(s):  
Farhan Ahmed ◽  
Iqra Awais ◽  
Muhammad Kashif
Keyword(s):  
Capital Structure ◽  
Financial Performance ◽  
Stock Exchange ◽  
Optimal Level ◽  
Annual Data ◽  
Financial Leverage ◽  
Return On Assets ◽  
Return On Equity ◽  
Listed Firms ◽  
The Impact

Capital generation to fund everyday operations and long-term expansions is a constant concerning element in the corporate world. This study aims to investigate the optimal level of capital structure that firms can adopt to improve their financial performance given the industry dynamics and economic circumstances of the country. Using Hausman’s specification test, annual data for the period 2005 – 2014 of Karachi Stock Exchange (KSE) 100 index listed securities has been collected to analyze the impact of financial leverage on the firms’ performance. Return on assets, return on Equity, and TOBIN’s Q are the proxies of financial performance analyzed against financial leverage for the KSE 100 index listed firms. The finding of the paper indicates that capital structure, leverage, interest cover and sales growth as most significant variables impacting firms’ profitability.   DOI: 10.15408/etk.v17i1.6102

Sign in / Sign up

Export Citation Format

Share Document