scholarly journals The Role Of Cash Holdings, Working Capital, Dividend Payout On Capital Investment

2018 ◽  
Vol 34 (3) ◽  
pp. 419-426
Author(s):  
Andrew Chan
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Capital Investment ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Payout Policy ◽  
Working Capital ◽  
Dividend Payout ◽  
Investment Spending ◽  
The Relationship

An objective of this paper is to investigate the relationship between firms' capital investment spending, cash holdings, and working capital in an expanding Asian financial market.  A sample of publicly traded manufacturing firms on the Hong Kong Stock Exchange was examined during the period 2005-2014. The empirical results provide strong and statistically significant evidence on the effect of cash flow on investment.  Working capital also exhibits significant relationship with capital investment spending, though the relationship is not as strong and significant as that with cash flow and cash holding.  Firms with low dividend payout policy over the sample period depended heavily on cash flow, changes in cash flow and, to a lesser extent, on working capital to finance spending on fixed plant and equipment.  These results suggest that the effect of capital investment spending financed by internal cash flow on firm value may depend on a firm's dividend payout.

scholarly journals Manajemen Modal Kerja Dan Dampaknya Terhadap Nilai Perusahaan Dengan Corporate Governance Sebagai Variabel Pemoderasi

2014 ◽  
Vol 6 (1) ◽  
pp. 68
Author(s):  
Adrianus Dhimas Setyanto ◽  
Ika Permatasari
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Corporate Values ◽  
Working Capital Management ◽  
Enterprise Value ◽  
Cash Conversion Cycle ◽  
The Relationship

AbstractThis study aims to determine the effect of working capital management on firm value. Corporate governance is used as a moderating variable in this study to explore the role of corporate governance in the relationship between working capital management with corporate values. Program participants of Corporate Governance Perception Index (CGPI) are used as a sample during the period from 2003 to 2011 and listed on the Indonesian Stock Exchange (IDX). We were using simple linear regression and the testing of moderating effects were calculated by Moderated Regression Analysis (MRA). The results showed that the working capital management has an influence on the value of the firm. However, corporate governance variables failed to moderate the relationship between working capital management and enterprise value. It shows that companies and investors in the market still lack concern for the program response and Corporate Governance Perception Index (CGPI) as an assessment of the application of the principles of corporate governance that has been done by the company .Keywords: Working Capital Management, Cash Conversion Cycle, Corporate Governance, Firm Values

scholarly journals DETERMINANTS OF DIVIDEND PAYOUT RATIO: A STUDY OF KSE MANUFACTURING FIRMS IN PAKISTAN

2017 ◽  
Vol 13 (1) ◽  
pp. 12-24
Author(s):  
Rehab Khan ◽  
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Payout Policy ◽  
Manufacturing Firms ◽  
Cement Industry ◽  
Panel Regression ◽  
Sales Growth ◽  
Significant Relation ◽  
Dividend Payout ◽  
Independent Variable

Purpose- Motive and cause of this study is pursuing to examine the determinants of dividend payout ratios of KSE listed companies in Pakistan. Design- This study used the data of ten sectors of cement industry and these companies are listed in Karachi stock exchange, and data is drives by 2003-2012, enlarge the current research on dividend payout policy. Panel regression model used to estimate the results. Corporate profitability has always been considered as a leading independent variable of dividend payout ratio. Findings- There are multitudinal factors other than corporate profitability that influence dividend decisions of the firm like taxes, cash flow and debt to equity, sales growth. This research analyzes that profitability, tax, and cash flow have a significant relation with dividend payout ratio. And debt to equity and sales growth has insignificant relationship with dividend payout ratio. Research Limitations- This research failed to collect the data of different sectors listed on KSE except Cement industry. And collect the data of only one sector (cement). There are other determinants exist that have a huge effect on payout ratio, than these which are included in the research.

scholarly journals The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange

2019 ◽  
Vol 8 (2) ◽  
pp. 131-146
Author(s):  
Thi Xuan Anh Tran ◽  
Quoc Tuan Le
Keyword(s):  
Ownership Structure ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Payout Policy ◽  
Ownership Concentration ◽  
H Index ◽  
Dividend Payout ◽  
Listed Firms ◽  
Ownership Composition ◽  
The Relationship

Abstract This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.

Pengaruh Free Cash Flow, Operating Cash Flow, dan Dividend Payout Ratio Terhadap Nilai Perusahaan

2018 ◽  
Vol 10 (1) ◽  
pp. 52-65
Author(s):  
Suwaldiman Suwaldiman
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Operating Cash Flow ◽  
The Impact

            This research examines the impact of free cash flow, operating cash flow, and dividend payout ratio on the firm value which is represented by stock return.             This research employees a multiple linear regression analysis to test the hypothesis. Samples used in this research are 159 manufacturing companies registered in Indonesia Stock Exchange for the period of 2013, 2014, and 2015.             This research reveals that free cash flow and operating cash flow have no significant impact on the firm value. Those variables seem having no important contents in the point of view of investors. Therefore they do not response to the information. However, this research proves that dividend payout ratio have significant impact on the firm value. It can be concluded that dividend payout ratio is more important than those of free cash flow and operating cash flow. Investors will positively response to the dividend information and it will significantly increase the firm value.

Association between the availability of financial resources and working capital management with stock surplus returns in Iran

2019 ◽  
Vol 14 (2) ◽  
pp. 343-361 ◽  
Author(s):  
Mahdi Salehi ◽  
Nadia Mahdavi ◽  
Saeed Zarif Agahi Dari ◽  
Hossein Tarighi
Keyword(s):  
Stock Returns ◽  
Firm Value ◽  
Financial Constraints ◽  
Cash Holdings ◽  
Financial Resources ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between access to financial resources, working capital with surplus stock returns and value of the company in Iran. Design/methodology/approach The study population consists of 728 observations and 91 firms listed on the Tehran stock exchange during an eight-year period between 2009 and 2016. The statistical model used in this study is a multivariate regression model; further, the statistical technique used to test the hypotheses is panel data. Findings The results saw a negative and significant linkage between changes in cash and stock’ excess returns, whereas no meaningful association between changes in working capital and stock surplus returns was seen. In other words, an Iranian rial (Iran’s currency) invested in working capital worth less on average than a rial held in cash. Furthermore, the authors realized that in an inflationary economy, firms mainly pay more dividends so as to illustrate better their financial position and also to attract more investors’ trust. The results also indicated that the final value of working capital in the companies that are faced with financial constraints is more than companies that are not faced with financial constraints. Subsequently, after the elimination of the effects of inflation on stock returns, it was found there is not any significant association between the stock’s real return and firm value. Practical implications This is one of the most comprehensive research works in Iran that simultaneously surveys the impacts of access to finance and working capital on firm value. This research warns corporate managers to pay more attention to the importance of keeping cash to finance and manage working capital for profitability and sustainability of their company’s operations. Surely, by understanding the relationship between cash holdings, working capital management and stock surplus return, investors will be able to make appropriate decisions about the optimal choice of funds. Originality/value What really will fascinate other scholars about this paper is the time period of the study because there were unprecedented sanctions against Iran market and many manufacturing industries were in financial strain. Without hesitation, the paper will make aware investors and stakeholders of this fact that cash holdings will be a good way in reducing the corporate financial problems in emerging markets, particularly those markets face financial sanctions like Iran.

scholarly journals PENGARUH EARNING PER SHARE, KEBIJAKAN DIVIDEN, ARUS KAS, LEVERAGE DAN RETURN ON ASSETS TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN PROPERTY DAN REAL ESTATE YANG TERDAFTAR PADA BURSA EFEK INDONESIA

2020 ◽  
Vol 15 (1) ◽  
Author(s):  
Angelin Chandra ◽  
Arie Pratania Putri ◽  
Leoni Angela ◽  
Henny Puspita ◽  
Felicia Auryn ◽  
...  
Keyword(s):  
Real Estate ◽  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Sampling Techniques ◽  
Return On Assets ◽  
Dividend Payout ◽  
Real Estate Sector ◽  
Equity Ratio ◽  
Positive Effect

The research was conducted in order to add insight and to find out whether Earning per Share, Dividend Payout Ratio, Cash Flow, Leverage, Return on Assets affect the value of company in property and real estate sector companies listed on Indonesia Stock Exchange for the 2013 – 2017 period. There are 75 companies and 15 sample companies that we obtained from this study using purposive sampling techniques. Descriptive quantitative is used in this type of research. The results showed that Earning Per Share, Dividend Payout Ratio, Debt to Equity Ratio and Return On Assets partially had a positive effect on firm value in property and real estate companies. While Cash Flow has no effect and is not significant.

scholarly journals Free cash flow effect towards firm value

2019 ◽  
Vol 6 (3) ◽  
pp. 108-116 ◽  
Author(s):  
Ida Ayu Made Chandra Dewi ◽  
Maria Mediatrix Ratna Sari ◽  
I.G.A.N Budiasih ◽  
Herkulanus Bambang Suprasto
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Free Cash Flow ◽  
Stock Index ◽  
Investment Opportunity ◽  
Dividend Payout ◽  
Investment Opportunity Set

A company is established to raise the value of the firm by maximizing profit and shareholder’s wealth. In the capital market, firm value is reflected in the stock price. To raise a firm value, needed to investigate the determinant of firm value. So, this research is aimed to determine the effect of free cash flow on firm value with dividend payout and investment opportunity set as mediator. Population in this research was companies listed on the Main Board Stock Index in Indonesian Stock Exchange for 2013-2017. The sample is 189 observation and it was taken by using purposive sampling technique. Data analysis technique used in this research is path analysis and Sobel test. This research founded that free cash flow has a positive significant effect on firm value and dividend payout, free cash flow has a negative effect on investment opportunity set, dividend payout has a positive significant effect on firm value, and investment opportunity set has a positive significant effect on firm value. Furthermore, dividend payout act as a mediator on the effect of free cash flow on firm value, but investment opportunity unable to mediate the effect of free cash flow on firm value.

scholarly journals Accelerating Company Performance through Dividend Payout Policy: A Trend Analysis of Automobile Sector Listed in Pakistan Stock Exchange

2021 ◽  
Vol 7 (1) ◽  
pp. 117-141
Author(s):  
Nisar Ahmad ◽  
Mohsin Nazir ◽  
Naseer Abbas
Keyword(s):  
Business Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Payout Policy ◽  
Company Performance ◽  
Dividend Payout ◽  
Size Growth ◽  
Equity Ratio ◽  
Relationship Of ◽  
The Relationship

The study explains the relationship of dividend payout policy on the business performance of companies that exist in automobile sector of Pakistan. 100 companies are selected from automobile sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company leverage debt to equity ratio and corporate governance index. Panel data is collected from 2012-2017 six years and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results showed that the automobile companies showed positive relationship between their dividend payout policy and profitability and it was concluded that both dependent and independent variables are positively related in this sector and size, growth and leverage are the controlling predictors of the relationship.

A Diagnosis of the Determinants of Dividend Payout Policy in India

2014 ◽  
pp. 1202-1211
Author(s):  
Raj Kumar ◽  
Pawan Kumar Jha
Keyword(s):  
Corporate Finance ◽  
Cash Flow ◽  
Stock Exchange ◽  
Payout Policy ◽  
Analytical Tool ◽  
Critical Factors ◽  
Dividend Payout ◽  
Earnings Per Share ◽  
Retained Earnings ◽  
Dividend Tax

Dividend decision involves the portion of a firm's net earnings that are paid out to the shareholders, and the remaining is ploughed back in the company for its growth purpose. Despite comprehensive theoretical and empirical explanations, dividend policy and its determinants are a puzzle to be fixed in corporate finance. This chapter is an attempt to assess the dynamics and determinants of dividend-payout policy using a factor analytical tool and a multiple regression analysis as a supportive tool. The authors take into account the sample of ten automobile companies based on Market Capitalization listed on the Bombay Stock Exchange (BSE) for a period of 10 years from 2002-2003 to 2012-2013. The results of the factor analysis show that six factors, current ratio, cash flow, retained earnings per share, earnings per share, equity dividend, and corporate dividend tax, are identified as the most critical factors determining dividend payout in Indian automobile companies. However, regression results depict only three factors (i.e. cash flow, equity dividend, and corporate dividend tax) have been found statistically significant in determining dividend payout policy.

scholarly journals Probabilitas Perusahaan Manufaktur yang Tercatat di Bursa Efek Indonesia dalam Membayar Dividen

2019 ◽  
Vol 7 (2) ◽  
Author(s):  
Rahmat Setiawan ◽  
Denny Hardiko Harmasanto
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Financial Statements ◽  
Payout Policy ◽  
Manufacturing Companies ◽  
Working Capital ◽  
Tangible Assets ◽  
Cash Reserves ◽  
A Company

This study aims to examine the factors that influence the probability of manufacturing companies in dividends payout policy. Variables including profitability, leverage, working capital, cash reserves, cash flow, tangible assets, size and age of the company and GDP growth are considered as determinants in the company's dividend policy. Samples were taken from 112 manufacturing companies listed on the Indonesia Stock Exchange during the 2012-2018 period. Panel data analysis uses the company's annual financial statements which were tested using logistic regression. The results of the study found the fact that profitability, cash reserves, operating cash flow and firm size had a positive and significant effect on the probability of a company paying dividends. Conversely, leverage, net working capital, tangible assets and the age of the company have a negative and significant effect.

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