scholarly journals Stock Market Liquidity And Dividend Policy In Korean Corporations

2017 ◽  
Vol 33 (4) ◽  
pp. 729 ◽  
Author(s):  
Jeong Hwan Lee ◽  
Bohyun Yoon
Keyword(s):  
Financial Markets ◽  
Dividend Policy ◽  
Empirical Studies ◽  
Explanatory Power ◽  
Negative Relationship ◽  
Market Liquidity ◽  
Stock Liquidity ◽  
International Evidence ◽  
Dividend Payments

The liquidity hypothesis predicts a negative relationship between stock liquidity and dividend payout propensity, i.e., a firm will decide to pay dividends to compensate for the liquidity demand of investors. This study comprehensively examines whether the liquidity hypothesis applies to the sample of Korean firms listed in the KOSPI and KOSDAQ markets. The main results of this paper are as follows. First, the dividend policy in Korean firms does not support the liquidity hypothesis, contradictory to the existing empirical studies. Next, the explanatory power of the liquidity hypothesis is even weaker for the KOSDAQ market, inconsistent with international evidence. Finally, even when we focus on the firm-year observations with non-negligible dividend payments, the liquidity hypothesis does not explain the dividend policy of Korean firms either. Our findings significantly contribute to the literature by robustly confirming the very limited role of the liquidity hypothesis for Korean financial markets.  

scholarly journals Financial Markets’ Governance, Transparency and Informational Efficiency: Role of IfRS Norms, Auditors and Financial Analysts

2016 ◽  
Vol 9 (5) ◽  
pp. 100
Author(s):  
Imen Lamiri ◽  
Adel Boubaker
Keyword(s):  
Financial Markets ◽  
Stock Prices ◽  
Stock Price ◽  
Financial Analysts ◽  
Negative Relationship ◽  
Developed Countries ◽  
Coefficient Of Determination ◽  
Specific Information ◽  
Informational Efficiency

<p>This article explores the informational role of three essential modern financial markets actors such IFRS norms, the Big”4” and the financial analysts for a panel of emergent and developed countries during the period from 2001 to 2010. We hypothesis that these mechanisms help improving the quality of specific information incorporated into stock prices measured by the stock price synchronicity (SPS). The main result is that both financial analyst’s coverage and IFRS adoption's effects seem to be stronger for emerging than developed markets. The results also show a negative relationship between auditors’ opinion and coefficient of determination (R<sup>2</sup>).</p>

scholarly journals Dividend policy and ownership structure: A study of Russian dual-class stock companies.

2017 ◽  
Vol 15 (1) ◽  
pp. 199-212 ◽  
Author(s):  
Irina Berezinets ◽  
Yulia Ilina ◽  
Liudmila Alekseeva
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Negative Relationship ◽  
Trading System ◽  
Public Companies ◽  
Dividend Payout ◽  
Dividend Payments ◽  
Dual Class Shares ◽  
Dual Class ◽  
The Relationship

This paper explores the relationship between ownership structure and dividend policy in Russian public companies with dual-class shares. The sample includes all companies issuing both ordinary (voting) and preferred (non-voting) shares traded on the Russian Trading System (RTS) in the period of 2003-2009. Using panel data and employing both linear and nonlinear regression modeling approach, we tested the relationship between ownership structure and dividend payout. One of the major conclusions is the existence of a negative relationship between the dividend payout on ordinary shares and institutional ownership, as well as between dividend payout on ordinary shares and offshore ownership. Unlike for ordinary shares, ownership structure is not related to dividend payments on preferred shares. Dividend policy on preferred shares is, instead, essentially related to a company’s performance.

scholarly journals The Realist and Liberal Positions on the Role of International Organizations in Maintaining World Order

2016 ◽  
Vol 12 (17) ◽  
pp. 85 ◽  
Author(s):  
Ersan Ozkan ◽  
Hakan Cem Cetin
Keyword(s):  
International Relations ◽  
International Law ◽  
Empirical Studies ◽  
Explanatory Power ◽  
World Order ◽  
Balance Of Power ◽  
Behavioral Dynamics ◽  
Interstate System ◽  
Peace And War

In the international relations (IR)’ theoretical and empirical studies, international regime studies emerged as a reaction to inadequacies of the concepts of authority, international order and organization. Over more than half a century, realism has been skeptical of international law. In both classical and neorealist approaches, states are depicted as seeking to maximize power and producing a balance of power. This study examines two paradigms, realism and liberalism, in an attempt to take a closer look at what each of these schools has to offer to the international relations. To be able to carry out such an evaluation each of these paradigms will be analyzed with respect to their positions on the following principles: unit of analysis, key concepts, behavioral dynamics, interstate system, peace and war, and last but not least explanatory power. Discussing the strengths and weaknesses of each of these paradigms will help in determining which of these approaches is the most persuasive.

scholarly journals WOMEN IN A DUAL BOARD SYSTEM AND DIVIDEND POLICY

2021 ◽  
Vol 24 ◽  
pp. 129-150
Author(s):  
Tastaftiyan Risfandy ◽  
Timotius Radika ◽  
Leo Indra Wardhana
Keyword(s):  
Board Of Directors ◽  
Dividend Policy ◽  
Gender Diversity ◽  
Cash Dividend ◽  
Listed Firms ◽  
Dividend Payments ◽  
Board Gender Diversity ◽  
And Behavior ◽  
Board System

We investigate whether firms with the presence of female on its board of commissioners and board of directors are associated with higher dividend policy. This paper uses Indonesian setting as a country with a dual board system implying that the role of board of commissioners and board of directors is explicitly separated. Using panel data on 525 publicly listed firms in Indonesia between 2011 and 2018, we find that the women's presence has different impacts on the dividend policy depending on their role as an executive or non-executive on the board. Female directors are negatively associated with cash dividend payments, while female commissioners positively impact dividend payment in the case of family-controlled firms only. Our results contribute to the literature on board gender diversity by showing different roles and behavior of boards in each tier in the corporate dividend policy, thus providing insights on corporate governance in a two-tiered board system in developing countries.

scholarly journals The Determinants of Corporate Dividend Policy in Pakistan

2015 ◽  
Vol 20 (2) ◽  
pp. 77-98 ◽  
Author(s):  
Aliya Bushra ◽  
Nawazish Mirza
Keyword(s):  
Dividend Policy ◽  
Negative Impact ◽  
Negative Relationship ◽  
Capital Gains ◽  
Insurance Companies ◽  
Dividend Yield ◽  
Dividend Payments ◽  
Internal Financing ◽  
Using Data ◽  
Institutional Owners

The objective of this study is to identify the significant determinants of firms’ dividend policy across different sectors in Pakistan. Using data on 75 companies listed on the KSE 100 index for the period 2005 to 2010, we find that profitable firms tend to give higher dividends than loss-making firms. Firm size has a negative relationship with the dividend payout ratio and dividend yield, indicating that, the larger the firm, the more likely it is to retain cash to pay off its liabilities. Growth in sales is positively related to dividend yield, whereby an increase in sales leads to higher profitability and higher dividend payments. Ownership concentrated within institutions (such as banks and insurance companies), the management/family, and individuals has a negative impact on the payout ratio. Institutional owners are more likely to retain excess cash and thus omit dividends, individual owners prefer capital gains to dividends given the tax deduction, and management- or family-owned firms avoid dividends, which lead to increased agency problems. Finally, the market-to-book ratio is negative and highly significant: firms with better growth opportunities rely on internal financing more than on generating external funds.

scholarly journals Liquidity and Dividend Policy: International Evidence

2010 ◽  
Vol 3 (3) ◽  
pp. 3 ◽  
Author(s):  
Carroll Howard Griffin
Keyword(s):  
Inverse Relationship ◽  
Dividend Policy ◽  
International Level ◽  
Stock Liquidity ◽  
International Evidence

Since the days of Miller and Modigliani, academics have been studying dividend policy. There have been many theories as to why companies declare dividends, under what circumstances investors may prefer dividends to other forms of compensation, and factors that cause dividends to rise. However, the concept of liquidity has until very recently been largely ignored. This paper examines liquidity and dividend policy on the international level to determine what relationship the liquidity of a firm’s stock has on the decision of how much dividend to disburse to investors. It finds that in several specific cases, there is an inverse relationship between stock liquidity and the dividend amount paid. This perhaps would point to dividends indeed at times compensating for lower stock liquidity. 

Negative Relationships Between Self-Efficacy and Performance Can Be Adaptive: The Mediating Role of Resource Allocation

2015 ◽  
Vol 44 (2) ◽  
pp. 555-588 ◽  
Author(s):  
James W. Beck ◽  
Aaron M. Schmidt
Keyword(s):  
Resource Allocation ◽  
Self Efficacy ◽  
Empirical Studies ◽  
Self Regulation ◽  
Negative Relationship ◽  
Performance Study ◽  
Mediating Role ◽  
And Performance ◽  
Negative Relationships

This research speaks to the ongoing debate regarding the role of self-efficacy in self-regulation. Specifically, we argue that both positive and negative relationships between self-efficacy and resource allocation are part of an adaptive process. We present the results of two empirical studies demonstrating that a negative relationship between self-efficacy and resource allocation is not always maladaptive and, in fact, can lead to positive indirect effects on performance. In Study 1, we observed natural fluctuations in self-efficacy as individuals completed a mathematics test, finding that the tendency to reduce resource allocation with high self-efficacy is most clearly observed when time is scarce. In turn, an inverted-U relationship between resource allocation and overall performance under high time scarcity emerged such that moderate levels of resource allocation resulted in the highest levels of performance. Study 2 used an experimental design in which self-efficacy was manipulated. Replicating core findings from Study 1, individuals drew upon self-efficacy to balance resource allocation across competing demands. We conclude with a discussion of the theoretical and practical implications of our results.

scholarly journals Managerial remuneration and payout policy: evidence from Indian Regular payers

2021 ◽  
Vol 18 (1) ◽  
pp. 139-150
Author(s):  
Chandrabhanu Das ◽  
Brajaballav Kar ◽  
Manoj Kumar Jena
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Positive Relationship ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Payout Policy ◽  
Annual Basis ◽  
Dividend Payments ◽  
Study Results

This study attempts to examine the role of managers in the associated agency theory on dividend policy decisions for firms that do not skip dividend payments. This research sample considered the firms that are listed on the Bombay Stock Exchange (BSE) and pay regular dividends on an annual basis from the financial year 2011 to 2020. Panel data econometric tools and robustness tests were carried out for model validation.The study results show that there is a higher positive relationship between change in payout ratio and managerial remuneration. Similarly, there is a large positive significance to increase manager incentive for regular payer firms with greater promoter control in higher dividend payout. Thus, this brings an agency theory perspective of rewarding well to managers to increase promoter wealth. Hence, policymakers can contemplate these findings to analyze the nexus between managers and promoters in the dividend policy of firms that never skip their dividend payments.

Liberalisation of Financial Markets: The Developing Country Experience

2009 ◽  
Vol 34 (2) ◽  
pp. 274-290
Author(s):  
Ram Pratap Sinha
Keyword(s):  
Financial Markets ◽  
Empirical Studies ◽  
Financial Sector ◽  
Financial Fragility ◽  
Sector Reform ◽  
Role Of The State ◽  
Financial Sector Reform ◽  
Market Liberalisation ◽  
The Impact

Tis article encompasses various aspects of financial market liberalisation including the historical evidences of market deregulation, empirical studies on the impact of such liberalisation on economic growth and development. The article also discusses the problem of financial fragility connected with financial sector reform and briefly reviews the theoretical underpinnings. Finally the article discusses the role of the state in mitigating the problems connected with financial sector liberalisation.

Sign in / Sign up

Export Citation Format

Share Document