scholarly journals Factors affecting the dividend policy of non-financial joint-stock companies in Ukraine

2020 ◽  
Vol 17 (3) ◽  
pp. 40-53
Author(s):  
Heorhiy Rohov ◽  
Oleh Kolodiziev ◽  
Nataliya Shulga ◽  
Mykhailo Krupka ◽  
Tetiana Riabovolyk
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Institutional Environment ◽  
Classification Tree ◽  
Classification Model ◽  
Economic Regulation ◽  
Business Risk ◽  
Minority Shareholders ◽  
Factors Affecting ◽  
The Impact

Dividend policy, as part of corporate governance, is largely dependent on the institutional environment in which companies operate. The study aims to determine factors affecting dividend policy in the conditions of the Ukrainian underdeveloped stock market, legal insecurity of minority shareholders, high cost and concentration of capital. For this purpose, hypotheses about the impact of a company’s financial state, size, business risk, and ownership structure on dividend payments were tested using a sample of 58 Ukrainian non-financial public joint-stock companies and applying Interactive tree classification techniques (C&RT). The resulting classification model for predicting dividend decisions correctly classifies 92.86% of companies that paid dividends and 93.3% of companies that did not. The findings, based on the classification tree and importance scale, prove the hypothesis that companies in which individuals and institutional investors have a controlling interest are more likely to pay dividends than other non-state companies. The financial indicators accurately classify only those firms that do not pay dividends, and business risk does not affect classification accuracy at all. The paper substantiates the ways of using the study findings for economic regulation, protection of minority shareholders’ rights, and proliferation of modern corporate governance practices.

scholarly journals Impact of Corporate Governance on Dividend Policy: Evidence from Pakistan

2021 ◽  
Vol 3 (3) ◽  
pp. 353-366
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Least Square ◽  
Political Connection ◽  
Dividend Payment ◽  
The Impact

Purpose: The objective of the paper is to examine the impact of corporate governance on the dividend payout policy of firms listed on the Pakistan stock exchange during 2010-2020. As Pakistani investors face issues regarding their return in the shape of dividends and depend upon the firm’s corporate governance strength. To test whether changes in firm code of corporate governance have a significant influence on dividend policy. Design/Methodology/Approach: The panel data has been used for the period 2010-2020 and panel least square has been applied. Further, to test the association, following factors such delisting risk, government tenure, political connection with institutional shareholding as many political firms hold corporate shares which influence the decision to pay dividends. Findings: Findings from the fixed effect model show that corporate governance has a negative impact on dividend policy while government tenure, politically connected firm has a positive impact on the dividend. The study also concludes that firm size, profitability, tax, asset turnover, leverage, and firm shareholding also influence firm dividend payment behavior. Implications/Originality/Value: The implication of study reveals that firms must focus on strong their governance and include more independent directors on the board which leads to favorable strategies regarding investors. The investor must invest in those firm where lower political connection, pay continuous dividend either high or low decease/increase delisting chances, strong corporate governance and firm specific factors also lead to make decision of dividend payment.

scholarly journals The Impact of Legal Systems on Dividend Payments

2021 ◽  
Vol 16 (1) ◽  
pp. 5-11
Author(s):  
Albi Alikaj ◽  
Aditya Limaye
Keyword(s):  
Legal System ◽  
Significant Relationship ◽  
Individual Factors ◽  
Legal Systems ◽  
Minority Shareholders ◽  
Factors Affecting ◽  
Shareholder Protection ◽  
Dividend Payments ◽  
Percentage Share ◽  
The Impact

Abstract This paper focuses on the amount of dividends paid to shareholders by companies in different countries and examines whether being in a country where the legal system offers weak shareholder protection affects dividend payments distributed to shareholders. The sample used for this study comprises 8,045 companies from 46 countries. Seven individual factors affecting shareholder protection were examined. Out of the seven factors, only two of them provide a significant relationship with dividend payments, and more specifically, the mechanisms put in place by companies to protect oppressed minority shareholders as well as minimum percentage share of capital in order for the shareholders to be eligible to call an extraordinary shareholder meeting.

scholarly journals Pengaruh Corporate Governance Dan Manajemen Laba Terhadap Kebijakan Dividen

2014 ◽  
Vol 5 (2) ◽  
pp. 151
Author(s):  
Agustina Ratna Dwiati ◽  
Muhammad Bisyri Effendi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Multiple Regression ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Opportunity ◽  
Financial Firms ◽  
Investment Opportunity Set ◽  
The Impact

AbstractThe aim of this study is to test the impact of corporate governance and investment opportunity set toward dividend policy with earnings management as intervening variable. The sample of this study is non-financial firms listed in Indonesia Stock Exchange and also a member of Corporate Governance Perception Index on 2012 and 2013. The method that used in this study is multiple regression. The results showed that company with strong corporate governance really cared about shareholders interests by giving high dividend for them. Meanwhile, earnings management has no impact toward dividend policy.

scholarly journals Corporate Governance Performance Relationship and the Role of Institutions and Culture: New Evidence from Asian Microfinance Institutions

2021 ◽  
Vol 7 (3) ◽  
Author(s):  
Ahmad Nawaz ◽  
Sidra Shahbaz ◽  
Abdul Farooq ◽  
Muhammad Masood Anwar
Keyword(s):  
Corporate Governance ◽  
Institutional Environment ◽  
Social Performance ◽  
Governance Mechanism ◽  
Microfinance Institutions ◽  
Data Set ◽  
Corporate Governance Mechanism ◽  
Asian Context ◽  
Globalized World ◽  
The Impact

Purpose: In a globalized world today, Microfinance Institutions (MFIs) are concerned about their corporate governance mechanism to enhance financial and social performance. However, it largely depends on the existing institutional, cultural and economic factors. This paper furthers the debate on the impact of corporate governance on the financial and social performance of Microfinance Institutions (MFIs) in Asian Context. Design/Methodology/Approach: The paper utilizes a panel cross-country data set comprised of 183 MFIs in 18 Asian countries over the period of 2010-2018. For empirical analysis, it applies GMM regression technique to control for the endogeniety issue.    Findings: The results show that generally corporate  governance mechanism contributes more  towards  social  performance  of  MFIs  than  the  financial  performance and a conducive institutional environment enhances both financial and social performance. However, good cultural and economic values contribute only towards the social performance of MFIs. Implications/Originality/Value: Since majority of MFIs irrespective of their status are socially oriented. Therefore, good corporate governance mechanism is more effective in enhancing social performance in particular. Progress towards human development contributes to both financial and social performance of MFIs.

scholarly journals The Determinants of Corporate Dividend Policy in Poland

Ekonomika ◽  
2019 ◽  
Vol 98 (1) ◽  
pp. 96-110
Author(s):  
Justyna Rój
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Data Availability ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Financial Firms ◽  
Investment Opportunities ◽  
Warsaw Stock Exchange ◽  
The Impact

[full article and abstract in English] The purpose of this research is to examine the factors that determine the dividend policy of non-financial firms listed on the Warsaw Stock Exchange (WSE) in Poland and that of the annually paid dividends. Up to now, many empirical studies related to dividend policy were carried out, showing the differentiation of factors affecting the dividend policy and their interaction. Thus, with this study, it would be possible to give a view on the dividend policy of corporations listed on the WSE for the period from 2008 to 2016. The study covers non-financial companies listed on the WSE in Poland. The Tobit regression is used to identify the impact of factors influencing the companies’ distribution of dividends. The variables that may explain a firm’s dividend decision and that were used in this study are selected based on the theory and available empirical researches and then also determined by data availability. These are profitability, investment opportunities, measures of size, leverage, and liquidity. As a result of this study, the factors that determine the dividend policy of companies were verified in the context of the companies listed on the WSE. Moreover, it indicates which of the existing theories on dividend policy could be applied to the capital markets of Poland. Thus, it provides new insights into the theory of dividend policy.

To the Question of Corporate Governance Institutional Environment in Developing and Emerging Markets

2020 ◽  
Vol 3 (57) ◽  
Author(s):  
Zhanat Zhussupova ◽  
Mohamed El-Hodiri
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Critical Reflection ◽  
Institutional Environment ◽  
Institutional Framework ◽  
Factors Affecting ◽  
Developing Markets ◽  
Governance Models ◽  
Main Factors ◽  
Institutional Features

This work is an attempt to contribute to thinking about the institutional framework of corporate governance in the context of its evolution in the developing and emerging markets (DEM). We raise the question whether the DEM countries adapt the mechanisms and practices of the corporate governance models of leading economies. We first introduce the concept and genealogy of the new institutional economy. Then we trace the specifics of the modern models of corporate governance and the main factors affecting these models. We finally engage in critical reflection on the problems in corporate governance in both developed and developing markets through the prism of the fundamental, institutional features of each country.

scholarly journals The impact of the corporate governance quality on the dividend policy of companies in the BRICS countries

2021 ◽  
Vol 2 (2) ◽  
pp. 84-106
Author(s):  
Maria Khamidullina ◽  
Svetlana Makarova
Keyword(s):  
Corporate Governance ◽  
Fixed Effects ◽  
Dividend Policy ◽  
Poor Quality ◽  
Public Corporations ◽  
Brics Countries ◽  
Dividend Payments ◽  
Corporate Governance Quality ◽  
The Impact

The article presents the results of a study aimed at determining the nature of the influence of the quality of corporate governance on the dividend policy pursued by companies in the BRICS countries. This relationship is determined based on empirical research on a sample of 122 large public corporations of the BRICS countries (based on 610 observations) for the period from 2015 to 2019. The study uses Tobit, random effects, fixed effects, and OLS. The results of this study show that the quality of corporate governance significantly negatively correlates with dividend payments of companies. This means that companies in the BRICS countries adhere to the dividend substitution model (proposed by La Porta), or, in other words, compensate for the poor quality of corporate governance with high dividend payments. Taking into account the results of the study, in the final part of the article, the main methods of improving the quality of corporate governance are proposed, which can contribute to increasing the value of companies in the BRICS countries.

scholarly journals Pengaruh atribut tata kelola dan karakteristik perusahaan terhadap kebijakan dividen pada perusahaan di BEI

2021 ◽  
Vol 17 (3) ◽  
pp. 196-215
Author(s):  
Serly Serly ◽  
Mery Susanti
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Independent Director ◽  
Women Directors ◽  
Firm Characteristics ◽  
Board Meeting ◽  
Board Size ◽  
The Impact

The dividend was a kind of return from portfolio investment. Firms in making dividend payment decisions are influenced by several motives. The main topic of the research was to determine the impact of corporate governance and firm characteristics on the decision of dividend policy. In here, corporate governance was focused on board characteristics consisting of board size, independent director, board meeting frequency, woman director, and audit committee size. While the firm characteristics were measured by size, profitability (ROA), and leverage. The research used companies data collected from Indonesia Stock Exchange. Companies data must available from the period 2015-2019 and resulted in 2.175 sample data. The research used the panel regression method. The result of the research proved that board size and profitability (ROA) significantly positively influenced the dividend policy. Board meeting frequency showed a positive effect on dividend per share, but no effect on dividend per asset. Otherwise, women directors and leverage reflected a significant negative effect with dividend per assets, but an insignificant effect on dividend per share. On the other hand, firm size, independent director, and audit committee size did not have any significant impact on dividend policy decisions.

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