Impact of Dividend Tax Change on the Payout Policy of Indian Companies

2019 ◽  
Vol 20 (5) ◽  
pp. 1282-1291
Author(s):  
Sanjay Dhamija ◽  
Ravinder Kumar Arora
Keyword(s):  
Negative Impact ◽  
Payout Policy ◽  
Tax Law ◽  
Dividend Payout ◽  
Inside Ownership ◽  
Regulatory Changes ◽  
Before And After ◽  
The Government ◽  
The Impact ◽  
Dividend Tax

The article examines the impact of regulatory changes in the tax on dividends on the payout policy of Indian companies. The tax law was recently amended to levy tax on dividends received by large shareholders. As the promoters group is the largest shareholder, this is expected to have a negative impact on the payout policy of companies. Furthermore, companies with larger promoter holdings have a higher motivation to reduce their payout. The study covers 370 companies present in the BSE 500 Index and compares the dividend payout of the companies before and after the introduction of tax levy. The study finds that the newly introduced tax indeed caused a shift in the dividend policy of companies, particularly those companies which have high levels of inside ownership. The findings have significant implications for companies, investors and the government.

Is a Corruption Crackdown Really Good for the Economy? Firm-Level Evidence from China

2020 ◽  
Author(s):  
Zhiyuan Chen ◽  
Xin Jin ◽  
Xu Xu
Keyword(s):  
Negative Impact ◽  
Foreign Firms ◽  
Private Firms ◽  
Firm Level ◽  
Personal Connections ◽  
Before And After ◽  
Short Run ◽  
The Government ◽  
Negative Impacts ◽  
The Impact

Abstract We study the impact of anticorruption efforts on firm performance, exploiting an unanticipated corruption crackdown in China’s Heilongjiang province in 2004. We compare firms in the affected regions with those in other inland regions before and after the crackdown. Our main finding is an overall negative impact of the crackdown on firm productivity and entry rates. Furthermore, these negative impacts are mainly experienced by private and foreign firms, while state-owned firms are mostly unaffected. We present evidence concerning two potential explanations for our findings. First, the corruption crackdown may have limited bribery opportunities that helped private firms operate. Second, the corruption crackdown may have interfered with personal connections between private firms and government officials to a greater extent than institutional connections between state-owned firms and the government. Overall, our findings suggest that corruption crackdowns may not restore efficiency in the economy, but instead lead to worse economic outcomes, at least in the short run (JEL L2, M1, O1).

scholarly journals Studi Komparatif Aplikasi Tax Treaty Indonesia-Tiongkok Dan Indonesia-Singapura

Educoretax ◽  
2021 ◽  
Vol 1 (3) ◽  
pp. 174-187
Author(s):  
Faqih Aji ◽  
Ferry Irawan
Keyword(s):  
Qualitative Research ◽  
Deep Understanding ◽  
Tax Law ◽  
Tax Rate ◽  
Close Relationship ◽  
The Government ◽  
The Impact ◽  
Dividend Tax

The increasing of global investment and trading has generated a close-relationship among countries. as a sovereign nation, a country will enforce its domestic rules particulary tax law. In order to stabilize the economy and keep the fairness, most countries agree to establish a tax treaty. This research investigates how the impact of tax treaty conducted by Indonesia. In addition, it compares the tax treaty between Indonesia-Chinese and Indonesia-Singapore. This research applies qualitative research to obtain a deep understanding. There are several important findings. First, in general tax treaty can promote a fair taxing for both treaty partners. Second, tax treaty between Indonesia-Singapore is more beneficial compares to Indonesia-Chinese from the perspective of dividend tax rate. Third, the research propose that the Government of Indonesia re-negotiate several articles particularly the tax rate.

scholarly journals Kampung Pulo Environmental Planning Observed from Biophysical Aspects as Adaptation of Flood in Jakarta

2018 ◽  
Vol 7 (2.3) ◽  
pp. 82
Author(s):  
Deffi Ayu Puspito Sari ◽  
Astrid Sugiana ◽  
Ristianti Yuri Ramadhonah ◽  
Suci Innaqa ◽  
Robbi Rahim
Keyword(s):  
Urban Areas ◽  
Environmental Planning ◽  
Negative Impact ◽  
Residential Buildings ◽  
Secondary Data ◽  
Environmental Damage ◽  
Before And After ◽  
The Government ◽  
Flooded Area ◽  
The Impact

Urbanization triggers an increase in urban land conversion. Along with the increasing population and the increasing needs of the shelter, people tend to use the remaining space such as riverbanks and river bodies which are not intended for residential buildings. This has a negative impact on the environmental and river ecosystems, as well as causing the changes in the function of rivers in urban areas, one of it is Ciliwung River which runs through Kampung Pulo. The government seeks to deal with the environmental damage on the riverbank through a revitalization program. This research was conducted to find out the impact of revitalization process by observing biophysical condition of river before and after eviction of people that live in the Ciliwung riverbank and provide a landscape plan of Kampung Pulo segment. Using secondary data of rainfall, land use, land cover and flooded area. The mapping with ArcGIS 10.1 shows there decrease in the area of flood puddle in Kampung Pulo.  

KAJIAN DAMPAK KEBIJAKAN PENUTUPAN LOKALISASI TELEJU OLEH PEMERINTAH KOTA PEKANBARU

2017 ◽  
Vol 15 (2) ◽  
pp. 78
Author(s):  
M. Zainuddin
Keyword(s):  
Social Order ◽  
Qualitative Method ◽  
Negative Impact ◽  
Early Stage ◽  
Policy Research ◽  
Research Approach ◽  
Policy Content ◽  
The Government ◽  
Closure Policy ◽  
The Impact

This research to analyze the impact of closure policy Teleju brothel by Pekanbaru govermentin 2010. Guidelines for works are Pekanbaru Local Regulations No. 12 of 2008 on Social Order-liness. Closure this brothel inflicts positive and negative impact for society.The research wasconducted to obtain early stage formula for the government to take action against the prostitu-tion activities. This research uses policy research approach with a qualitative method, becausein prostitution activities and prohibition by goverment is an assessment that needs to be done byanalyzing documents and unstructured interview.The results showed that after the closing of the Teleju brothel have an impact on the deploy-ment of a prostitution and affect the economy of the surrounding residents. Government seeksto tackle prostitution in Pekanbaru by moving the brothel, conduct regular raids and providetraining. The effort is considered to be less than the maximum because the handling is not basedon the root of the problem and not programmed properly. There are several causes of failure ofgovernment to overcome the prostitution problem in Pekanbaru, including: policy content isless focus on the prostitution problem, the government did not proceeds with data, lack of finan-cial support, contra productive programs between local government with the police and TNI,and the policy object is difficult to be given understanding.

scholarly journals The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect

2021 ◽  
Vol 18 (8) ◽  
pp. 4045
Author(s):  
Yinhao Wu ◽  
Shumin Yu ◽  
Xiangdong Duan
Keyword(s):  
Environmental Regulation ◽  
Local Economic Development ◽  
Negative Impact ◽  
Empirical Test ◽  
Mediating Effect ◽  
Production Costs ◽  
Agglomeration Effect ◽  
The Government ◽  
Pollutant Discharge ◽  
The Impact

Pollution-intensive industries (PIIs) have both scale effect and environmental sensitivity. Therefore, this paper studies how environmental regulation (ER) affects the location dynamics of PIIs under the agglomeration effect. Our results show that, ER can increase the production costs of pollution-intensive firms (PIFs) by internalizing the negative impact of pollutant discharge in a region, and thus, directly reduces the region’s attractiveness to PIFs. Meanwhile, ER can indirectly reduce the attractiveness of a region to PIFs by reducing the externality of the regional agglomeration effect. Moreover, these influences are regulated by the level of local economic development. Based on the moderated mediating effect model, we find evidence from the site selection activities of newly built chemical firms in cities across China. The empirical test shows that compared with 2014, the proportion of the direct effect of ER to the total effects significantly decreased in 2018, while the proportion of indirect effects under the agglomeration effect increased significantly. Our findings provide reference for the government to design effective environmental policies to guide the location choice of new PIFs.

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.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals OPTIMALISASI PENYELENGGARAN PELAYANAN PUBLIK DALAM MASA PERUBAHAN MELAWAN COVID-19 DI INDONESIA

2021 ◽  
Vol 5 (1) ◽  
pp. 210
Author(s):  
Diana Setiyo Dewi ◽  
Tiur Nurlini Wenang Tobing
Keyword(s):  
Service Delivery ◽  
Public Service ◽  
Good Governance ◽  
Negative Impact ◽  
Community Services ◽  
Public Service Delivery ◽  
Work From Home ◽  
The Government ◽  
New Policies ◽  
The Impact

This study focuses on COVID-19 as a global pandemic that has a negative impact on various government fields. The government made a new online-based policy on public service delivery. Public services before COVID-19 are seen as not optimal, the improvement needs are piling up in line with the delays during the COVID-19 pandemic, it is very necessary to optimize the implementation of good governance, problems we are facing now are the threat of COVID-19 against the deterioration of the country, new policies that do not produce solutions, difficulties in implementing online-based work policies due to uneven technological progress in each region, increasing COVID-19 cases, and the pile-up task of improving public service delivery. Current pandemic situations in Indonesia; an increasing number of COVID-19 cases in Indonesia with a total of 93,657 on July, 23rd 2020; The government-issued social distancing policies, physical distancing, work from home and PSBB to break the chain of COVID-19; Conducting community intelligence through online and offline COVID-19 prevention education; Java island as the most populated area in Indonesia (SUPAS 2015) experienced a prolonged red zone until the implementation of the PSBB; it's affected the economic turnover. The Impact of the COVID-19 Pandemic on Public Service Delivery; Limited access for providing community services; Issued a new policy; Closure of schools, markets, public facilities, restrictions on transportation passengers, and others; Providing online-based services. The conclusions and suggestions in this study are the application and development of the E-Government system; Creating new reliable policy standards; Employee training regarding online-based work systems; Efforts to distribute technology and information to every remote area in Indonesia

scholarly journals The Impact of the Capture of Leaders of Criminal Organizations on the Labor Market: Evidence from Mexico

2021 ◽  
Author(s):  
Daniel Osuna Gómez ◽  
Keyword(s):  
Labor Market ◽  
Census Data ◽  
Negative Impact ◽  
Difference Analysis ◽  
Criminal Organizations ◽  
Before And After ◽  
Economic Census ◽  
The Difference ◽  
Integral Assessment ◽  
The Impact

This paper estimates the impact of the capture of leaders of criminal organizations on the labor market in municipalities where these organizations operated between 2004 and 2006. The difference-in-difference analysis compares different employment outcomes in cartel locations and the rest, before and after the capture of cartel leaders. The results show that captures caused a decrease in nominal wages and paid employment in cartel municipalities. Using Economic Census Data, I find that captures also caused a fall in the number of establishments and had a negative impact on other establishment outcomes. This document focuses exclusively on the impact of the capture of leaders of criminal organizations on the labor market until 2011 without studying other possible consequences, and thus does not make an integral assessment of this policy

scholarly journals The Street Vendors Perception to the Information of Public Access Disruption as the Effect of their Existence

2018 ◽  
Vol 7 (3.21) ◽  
pp. 243
Author(s):  
Dorris Yadewani ◽  
Syafrani .
Keyword(s):  
Negative Impact ◽  
Descriptive Analysis ◽  
Research Field ◽  
Public Access ◽  
Primary Data ◽  
Research Subjects ◽  
Street Vendor ◽  
Street Vendors ◽  
The Government ◽  
The Impact

Street vendors is a phenomenon in almost all regions in Indonesia, which is always a positive and negative impact on the region where the street vendor activity. The positive is the economy in a sustainable life in areas where street vendor activities, while the negative effects are disturbed some public access as a result of the existence of such street vendor, such as public roads are always jammed, the sidewalk is not functioning, trash increases or the environment increasingly neglected, area aesthetics will show discomfort. For the more crowded street vendor activities will have an impact upon the producer. However street vendor unaware that what was done to give effect to society because of disruption of public facilities. It is very necessary of information for the  street vendor’s understanding and perception to the impact caused by their presence in an area. The research was conducted by qualitative method with type research field investigations and descriptive analysis of the street vendor, managers, buyers and decision makers who do trading activities in S. Parman Street, UlakKarang Padang.  Samples as research subjects were the street vendors as much as 5 people, managers, local government, the buyer and road users. The data used are primary data and secondary data. Data Collection Techniques conducted by observation, interview, and documentation while data analysis is conducted qualitatively by a descriptive approach. The findings and the results are show that the information obtained is correct in running its activities to seek fortune already utilizing public access such as sidewalk and road. Contributions to the street vendors are expected to have awareness in running its activities mainly on the utilization of public access and if you want to keep running its activities must be willing to abide by all the regulations set forth by the government, because it became a street vendor answers to some of the problems faced by street vendors as well as for the government attempted to manage and regulate the existence of street vendors to be in line with policies that have been set by the government for street vendors somehow able to overcome the problem of the existence of the public economy. 

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