scholarly journals Stock Liquidity, Financial Report Quality, Wedge, and The Propensity to Pay Dividend

2019 ◽  
Vol 12 (3) ◽  
pp. 239
Author(s):  
Rahmat Setiawan ◽  
Nova Christiana ◽  
Sanju Kumar Singh
Keyword(s):  
Agency Conflicts ◽  
Probit Regression ◽  
Government Ownership ◽  
Stock Liquidity ◽  
Financial Report ◽  
Listed Firms ◽  
Report Quality ◽  
Liquidity Measures ◽  
Propensity To Pay ◽  
The Impact

This research examined the effect of stock liquidity on the propensity to pay dividend for 254 Indonesian public listed firms during the period of l 2011 and 2015. Stock liquidity implies transparency level and serves as market monitor for management performance in using the cash flow. Furthermore, this research examines the impact of stock liquidity on dividend payment in the presence of agency conflicts using agency proxies, wedge and government ownership. This paper employed multivariate probit regression. The baseline model has controlled for time in-variant and industry sectors. Robustness checks are employed to present consistent result for other stock liquidity measures. The results confirm the predicted dividend model outcome and prove the contradiction in dividend signaling theory.

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.

scholarly journals Agency Costs, Corporate Governance and the Nature of Controlling Shareholders: Evidence From French Listed Firms

2018 ◽  
Vol 8 (3) ◽  
pp. 256 ◽  
Author(s):  
Dabboussi Moez
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Agency Costs ◽  
Managerial Ownership ◽  
Investment Horizon ◽  
Agency Conflicts ◽  
Controlling Shareholders ◽  
Listed Firms ◽  
Indirect Benefits ◽  
The Impact

This paper examines the impact of internal corporate governance on agency costs for French firms from 2000 to 2015. Our results reveal that shareholders themselves are not a homogenous group since they have no single common investment horizon. We found that managerial ownership is more effective in mitigating operational expenses. However, they take advantage of excessive spending on indirect benefits. We show that board of directors does not serve as a significant deterrent to excessive discretionary expenses. Finally, we found that dividend policy is a useful tool to reduce agency conflicts by reducing cash that is available for discretionary uses.

scholarly journals Pengaruh Implementasi Sistem Informasi Manajemen Daerah Terhadap Kualitas Laporan Keuangan pada Satuan Kerja Pemerintah Daerah Kabupaten Nias Selatan

2019 ◽  
Vol 10 (2) ◽  
pp. 96-109
Author(s):  
Patricia Diana ◽  
Chermian Eforis ◽  
Maria Stefani Osesoga
Keyword(s):  
Local Government ◽  
Internal Control ◽  
Financial Statements ◽  
Primary Data ◽  
Survey Method ◽  
Financial Reports ◽  
Financial Report ◽  
Report Quality ◽  
The Impact

The purpose of this study was to examine the impact of the implementation of Sistem Informasi Manajemen Daerah (SIMDA) toward financial report quality of local government in Nias Selatan. The Indonesian government has encouraged each region to implement Sistem Informasi Manajemen Daerah (SIMDA). SIMDA is an e-government system developed by the Deputi Pengawasan Bidang Penyelenggaraan Keuangan Daerah in order to improve internal control in regional reporting, including local government financial reports. The study was conducted using a survey method to provide the questionnaries to Kepala Sub Bagian Keuangan, Kepala Sub Bagian Program, and Bendahara in 63 Satuan Kerja Perangkat Daerah (SKPD) Nias Selatan. The data used in this study was primary data. There were 154 questionnaries distributed for this research, but only 140 questionnaries returned and used in this research. Data processing using SPSS 24 application with simple regression method.    The result of this study was implementation of Sistem Informasi Manajemen Daerah (SIMDA) has significant impact toward financial report quality of local government in Nias Selatan.   Keywords        : financial report quality, local government financial statements, SIMDA

scholarly journals MSME’S DEMOGRAPHIC AS MODERATION IN THE IMPACT OF PERCEPTION AND UNDERSTANDING OF BOOKKEEPING TOWARDS QUALITY OF FINANCIAL REPOR

2019 ◽  
Vol 3 (1) ◽  
pp. 1
Author(s):  
Cahyani Tunggal Sari ◽  
Lukman Ahmad Imron Pahlawi
Keyword(s):  
Quantitative Research ◽  
Bank Loan ◽  
Financial Report ◽  
Moderating Variables ◽  
Report Quality ◽  
Business Size ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Impact

Micro Small Medium Enterprises (MSME) especially in culinary are the main destination of tourist in Surakarta Indonesia. As the tourist destination, MSME must be creative in develop their product. The financial ability is the main source of the owner in develop their business. Bank loan is an alternative in order to improve the financial sorce. Therefore, the MSME’s owner need to compile the financial report as one of bank loan requirement. This study is a quantitative research which is use multiple regression analysis using moderation variables. The quality of financial report is the dependent variable. The Independent variables are the MSME’s owner perception and understanding about book keeping. This study also enclose the MSME’s owner demographic background that consist of educational leverage and business size as the moderating variables. The data is collected from culinary MSME’s in Surakarta, Indonesia in the year of 2017. The findings of this research shows that educational leverage and business size are Predictor Moderation Variable. Besides, the perception and understanding are not significantly influence the financial report quality. The result of beta value shows that the business size strengthen the bookkeeping perception variable and weaken the understanding variable towards financial report quality. While the educational leverage strengthen the understanding variable and weaken the perception variables even all of them are not significantly influenced.

scholarly journals Does gender diversity on the board reduce agency cost? Evidence from Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Amin ◽  
Ramiz Ur Rehman ◽  
Rizwan Ali ◽  
Collins G. Ntim
Keyword(s):  
Gender Diversity ◽  
Business Environment ◽  
Agency Cost ◽  
Agency Conflicts ◽  
Content Type ◽  
Listed Firms ◽  
Financial Firms ◽  
Female Directors ◽  
Board Gender Diversity ◽  
The Impact

Purpose This study aims to examine the effects of board gender diversity on agency costs in non-financial firms listed on the Pakistan Stock Exchange (PSX). Design/methodology/approach Multiple regression analysis is used to determine the impact of board gender diversity on agency cost. The research used panel data consisting of 2,062 firm-year observations of 226 non-financial firms listed on the PSX from 2008 to 2019 to test the proposed hypothesis. In addition, the Blau and the Shannon indices were used to checking for robustness. Findings The results indicate that female presence on the board significantly reduces the agency cost and, hence, mitigates the principal-agent conflict. Moreover, consistent with the critical mass theory, it was found that boards with three or more female directors have a stronger impact on reducing the agency cost, as compared to two or fewer female directors on the board. Research limitations/implications The sample was restricted to non-financial firms listed on the PSX only; therefore, the results reflect the attributes of Pakistan’s business environment. A similar analysis in the context of other countries may generate different results. Practical implications The findings imply that female directors play an important role in reducing agency conflicts between shareholders and managers by enhancing monitoring through effective governance mechanisms. The policymakers, therefore, should focus on female career development and encourage professional training programmes to generate a fair, competitive environment for senior female management. Originality/value This study attempts to fill the literature gap in that no similar study covers the non-financial firms’ listed firms in Pakistan. The paper supports the reforms made by the code of corporate governance by making the placement of female directors mandatory on Pakistani corporate boards. Overall, support is provided for the view that regulators should favour gender quotas regarding the composition of the board management team of listed firms to reduce agency conflicts and gain shareholder confidence.

Assessing Commonality in Liquidity: Evidence from an Emerging Market’s Index Stocks

2020 ◽  
pp. 097215092094290
Author(s):  
Gaurav Kumar ◽  
Arun Kumar Misra ◽  
Abhay Pant ◽  
Molla Ramizur Rahman
Keyword(s):  
Natural Resources ◽  
Financial Services ◽  
High Frequency ◽  
Emerging Market ◽  
Relative Strength ◽  
Stock Liquidity ◽  
Fund Managers ◽  
Liquidity Measures ◽  
Key Industries ◽  
The Impact

This study investigates the degree to which movements in stock liquidity is determined by common underlying factors in a large emerging market, India. This degree is called commonality. Commonality has been measured for NIFTY50 stocks using high frequency data across a variety of liquidity measures. This study empirically verifies the relative strength of market- and industry-wide liquidity in explaining commonality. Furthermore, the study analyses the impact of industry-wide liquidity on the liquidity of individual stocks belonging to the key industries of Indian economy, viz. consumer goods and pharma, energy, financial services, infrastructure, information technology (IT) and telecom, manufacturing and natural resources. Among all the sectors studied infrastructure, IT and telecom, manufacturing and natural resources sectors possess higher degree of Industry-wide commonality. This means fund managers find it difficult in altering a portfolio having greater exposure to these sectors. Studying the behaviour of commonality will also assist regulators in monitoring abnormal market fluctuations. The study contributes to the understanding of commonality on an emerging order driven market like India.

Impact of Institutional Ownership on Stock Liquidity: Evidence from Karachi Stock Exchange, Pakistan

2018 ◽  
Vol 19 (4) ◽  
pp. 939-951 ◽  
Author(s):  
Muhammad Sadil Ali ◽  
Shujahat Haider Hashmi
Keyword(s):  
Stock Exchange ◽  
Institutional Ownership ◽  
Fixed Effect Model ◽  
Insurance Companies ◽  
Positive Role ◽  
Stock Liquidity ◽  
Listed Firms ◽  
Effect Model ◽  
Efficient Resource ◽  
The Impact

This study empirically investigates the impact of institutional ownership on stock liquidity; we used a sample size of 84 non-financial companies listed on Karachi Stock Exchange (KSE). Data were gathered for the period of 10 years, starting from 2005 to 2014. This study employs turnover ratio to measure stock liquidity while institutional ownership is measured by dividing number of shares kept by institutions from total number of outstanding shares. The fixed effect model shows that the degree of stock liquidity in Pakistani-listed firms tend to significantly increase for the firms where institutions hold a significant amount of share of that particular firm. This study also finds that ownership by bank and investment companies are positively associated with liquidity, while relationship between ownership by insurance companies and stock liquidity is found to be insignificant. Our evidence supports that many but not all institutional investors play a positive role to improve stock liquidity in Pakistani capital market. The results of this study are important for dealers, traders and brokers, in the sense that they can facilitate investors in efficient resource allocation.

From cents to half-cents and its liquidity impact

2014 ◽  
Vol 26 (3) ◽  
pp. 160-176 ◽  
Author(s):  
Hamish D. Anderson ◽  
Yuan Peng
Keyword(s):  
New Zealand ◽  
Small Firms ◽  
Small Sample ◽  
Tick Size ◽  
Stock Liquidity ◽  
Content Type ◽  
Liquidity Measures ◽  
The Impact ◽  
Effective Spread ◽  
Selection Of

Purpose – The purpose of this paper is to examine the impact on stock liquidity following the reduction of minimum tick size from $0.01 to $0.005 for a selection of dual-listed and property stocks on the New Zealand Exchange (NZX) during 2011. Design/methodology/approach – Various liquidity measures were examined six months either side of the change in minimum tick size for the eligible stocks and these were compared to a sample of stocks matched on similar liquidity characteristics. Liquidity measures examined in the paper include quoted and effective spread, volume, depth and binding-constraint probability. Findings – After controlling for firms matched on similar pre-period liquidity characteristics both spread and depth decline significantly. Evidence that small firms experience significant declines in trading activity was also found, and while firms with higher binding-constraints probability have greater declines in spread, their decline in depth is greater still. Research limitations/implications – The small sample of 17 stocks eligible for the $0.005 minimum tick size potentially impacts on the strength of the statistical analysis. As such, it is harder to detect statistically significant changes in liquidity. Practical implications – These findings have important implications for policymakers as the hoped for benefits of smaller tick increments may only be fully realized by larger more active stocks. Originality/value – The paper examines the impact of a change in minimum tick size on eligible New Zealand Exchange (NZX) stocks to determine whether it meet the stated NZX goal of boosting liquidity.

scholarly journals Investigating the Impact of Board of Directors on Accounting Conservatism in Kuwait

2020 ◽  
Vol 13 (9) ◽  
pp. 46
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Boards Of Directors ◽  
Stock Exchange ◽  
Accounting Conservatism ◽  
Board Independence ◽  
Agency Conflicts ◽  
Listed Firms ◽  
Independent Variables ◽  
Financial Firms ◽  
Kuwait Stock Exchange ◽  
The Impact

This study aims to study the influence of boards of directors on the accounting conservatism of non-financial listed firms in Kuwait Stock Exchange (KSE). According to agency theory, accounting conservatism and boards of directors can be considered effective mechanisms for reducing agency conflicts, thereby protecting the interests of investors that used the financial information while also increasing firms’ performance and value. This study sought to build a link between accounting conservatism and boards of directors by using a sample of 87 non-financial firms listed on the KSE at the end of 2019. The study used three independent variables (i.e., board size, board independence, and family directors) and found that none affected accounting conservatism. This study contributes to the literature by identifying the impact of boards of directors on accounting conservatism in Kuwait as no work has been done in this area before.

scholarly journals The relationship between government ownership, firm performances and leverage: An analysis from Malaysian listed firms

2013 ◽  
Vol 10 (4) ◽  
pp. 47-60
Author(s):  
Nazrul Hisyam Ab Razak ◽  
Normaizatul Akma Saidi ◽  
Fauziah Mahat
Keyword(s):  
Firm Performance ◽  
Capital Structure ◽  
Agency Cost ◽  
Government Support ◽  
Inverse Association ◽  
Governance Mechanism ◽  
Government Ownership ◽  
Corporate Managers ◽  
Listed Firms ◽  
The Impact

The purpose of this paper is to examining the impact of government ownership on firm performance and leverage in Malaysia. In this paper, we examine governance mechanism and firm performance and leverage of 200 Malaysian firms over 5 year periods from 2005 - 2009. We use fixed effect panel regression model in predicting capital structure of Malaysian firms. We use two indicators as independent variables which are debt ratio and debt over equity ratios. This paper is to determine whether after controlling firm specific characteristics such as corporate governance, agency cost, growth, risk and profitability, government involvement will influence decision on debt policy of the firm. This study may enable the firms to make better decision on their external financing. The inverse association of leverage and profitability implies that the firms are able to get the required capital easily due to the higher level of profits. The existence of government support and backup also will ensure the level in the firms is at the controllable. Therefore, the findings will be able to add new knowledge to the corporate managers and policy makers especially on decision-making on capital structure.

Sign in / Sign up

Export Citation Format

Share Document