What Drives the Cash Dividend Policy of the Poorly Performing Firms in Hong Kong?

2008 ◽  
Vol 11 (03) ◽  
pp. 347-361 ◽  
Author(s):  
Louis T. W. Cheng ◽  
Hung-Gay Fung ◽  
T. Y. Leung
Keyword(s):  
Hong Kong ◽  
Cash Flow ◽  
Dividend Policy ◽  
Free Cash Flow ◽  
The Self ◽  
Cash Dividend ◽  
Market Transparency ◽  
Good Market ◽  
Self Interest ◽  
Free Cash Flow Hypothesis

We use financial data on poorly performing firms in Hong Kong to examine the motives behind paying out cash dividends when they suffer an earnings decline. We test three hypotheses behind the cash dividend policy: the maturity hypothesis, the free cash flow hypothesis, and the self-interest hypothesis of directors (i.e., the cash channeling hypothesis of directors). The findings are largely consistent with the maturity hypothesis and the free cash flow hypothesis but do not support the cash channeling hypothesis, confirming good market transparency and governance of the Hong Kong market.

scholarly journals Ukuran Perusahaan Memoderasi Pengaruh Free Cash Flow dan Leverage Terhadap Kebijakan Dividen

2019 ◽  
pp. 484
Author(s):  
I Kadek Edi Rian Trisna ◽  
Gayatri Gayatri
Keyword(s):  
Cash Flow ◽  
Firm Size ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Cash Dividend ◽  
Optimal Dividend ◽  
Current Growth ◽  
Optimal Dividend Policy ◽  
A Company

Determining the optimal cash dividend policy a company should consider several factors. An optimal dividend policy is required because it can create a balance between dividends and current growth in the next period. The purpose of this study is to obtain empirical evidence on the effect of free cash flow and leverage on dividend policy and firm size capability in moderating the effect of free cash flow and leverage against dividend policy. Companies going public listed on the Indonesia Stock Exchange (BEI) year 2013-2017 is the location of research with purposive sampling as a method of determining the sample. Companies that meet the criteria are 10 companies with a total of 39 observations. Moderated Regression Analysis (MRA) was used to test in this research. The result showed that free cash flow had positive and leverage effect negatively on dividend policy. The study also found that firm size is able to strengthen the effect of free cash flow on dividend policy and weaken the influence of leverage on dividend policy. Keywords: dividend policy, free cash flow, leverage, company size..  

scholarly journals The Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm Value

2018 ◽  
Vol 7 (3) ◽  
pp. 1
Author(s):  
G.A Sri Oktaryani ◽  
Siti Sofiyah Abdul Mannan
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Cash Flow ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Moderating Effect ◽  
Cash Dividend

This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA

scholarly journals The Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm ValueThe Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm Value

2020 ◽  
Vol 7 (3) ◽  
Author(s):  
G.A Sri Oktaryani ◽  
Siti Sofiyah ◽  
Abdul Mannan
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Cash Flow ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Moderating Effect ◽  
Cash Dividend

This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.Keywords:Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA

scholarly journals The Moderating Effect of Dividend Policy on Free Cash Flow and Profitability Towards Firm Value

2018 ◽  
Vol 7 (3) ◽  
Author(s):  
G A Sri Oktaryani ◽  
Siti Sofiyah Abdul Mannan
Keyword(s):  
Regression Analysis ◽  
Cash Flow ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Moderating Effect ◽  
Cash Dividend ◽  
Article Title

ARTICLE INFO  ABSTRACT Keywords:Dividend Policy, Free Cash Flow, Profitability, Firm Value, Manufacture, MRA How to cite:Oktaryani, Sri.,  (2018). Article Title. JMM  UNRAMDOI:10.20956/jmm.v3i2.821   This study is aimed to determine the moderating effect of Dividend Policy on Free Cash Flow and Profitability towards Firm Value. This study use Moderate Regression Analysis (MRA) as tool to analyze the moderating effect of Dividend Policy on the sample tested. Sample are chosen by using purposive sampling method from all manufacture firms that listed on Indonesian Stock Exchange throughout 2010-2015 which offered cash dividend to their shareholders. By using panel data, the findings show that Free Cash Flow and Profitability themselves have significant effect on Firm Value. But conversely, each Free Cash Flow and Profitability does not have significant effect on Firm Value after being moderated by Dividend Policy. It is because the direct effect of Free Cash Flow and Profitability toward Firm value is bigger than the indirect effect. The results indicate that Dividend Policy is just predictor moderation in this case.

scholarly journals Impact of Agency Costs on Financial Performance of Listed Consumer Goods Companies in Nigeria

2020 ◽  
pp. 51-55
Author(s):  
Binta Abubakar Nuhu ◽  
Kabiru Isa Dandago ◽  
Lawal Mohammad ◽  
Abdullahi Bala Ado ◽  
Umar Farouk Abdulkarim
Keyword(s):  
Financial Performance ◽  
Cash Flow ◽  
Consumer Goods ◽  
Agency Costs ◽  
Free Cash Flow ◽  
Annual Reports ◽  
Cash Dividend ◽  
Panel Data Regression ◽  
Data Regression ◽  
Free Cash Flow Hypothesis

This paper examined impact of agency costs on financial performance of listed consumer goods companies in Nigeria. The research utilized documentary data collected from annual reports of consumer goods companies in Nigeria for the period of 2007-2016. A panel data regression technique was employed. The study reveals inverse relationship between agency costs and financial performance, indicating that agency costs will lead to a decline in financial performance, if not properly managed. Based on this result the study recommends that managements of listed consumer goods companies in Nigeria should lay down effective rules and regulations that will ensure avoidance of keeping free cash flow at managers’ discretion so that agency costs could be minimized and effectively managed. This could be achieved by complying with the suggestions by free cash flow hypothesis paying it out in the form of cash dividend or committing the firms in to more financial obligations which requires periodic interest payments. There should be critical reviewed before such action are taken by companies in consumer goods industries.

scholarly journals FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP KEBIJAKAN HUTANG PERUSAHAAN (Studi Empiris pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia Tahun 2012-2014)

2018 ◽  
Vol 14 (1) ◽  
pp. 40
Author(s):  
Luluk Muhimatul Ifada ◽  
Yunandriatna Yunandriatna
Keyword(s):  
Multiple Regression ◽  
Cash Flow ◽  
Dividend Policy ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Company Size ◽  
Listed Firms ◽  
Negative Effect ◽  
Debt Policy

Debt policy is one of the most important decisions for the company. It is thus important to figure out the determinants of debt policy. The main purpose of this study is to examine the effect of the size, free cash flow, managerial ownership, dividend policy on debt policy of Indonesian manufacturing public listed firms. Data collected from 195 companies from 2012 to 2014 were analyzed using multiple regression. Current study found that free cash flow and managerial ownership have negative effect on the debt policy. Furthermore, the study also found that dividend policy and company size positively affects the debt policy.

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