scholarly journals The determinants of dividend policy in Euronext 100

2018 ◽  
Vol 15 (4) ◽  
pp. 8-17 ◽  
Author(s):  
Nádia Genebra Ahmad ◽  
Victor Barros ◽  
Joaquim Miranda Sarmento
Keyword(s):  
Indirect Effects ◽  
Dividend Policy ◽  
Dividend Yield ◽  
Firm Level ◽  
Ols Regression ◽  
Explanatory Variables ◽  
Additional Finding ◽  
Size Of Firms ◽  
Future Growth

The purpose of this paper is to examine the determinants of firms’ dividend policy, measured by dividend yield, using a sample of firms that belong to the Euronext 100 index for a period between 2007 and 2016. We used OLS regression with the dividend yield as the dependent variable and a number of explanatory variables at the firm level. Results show that the dividend yield in this paper is not associated with firms’ profitability, although both higher growth expectations by investors and larger size of firms negatively influence firms’ dividend yield. We found some evidence that leverage is indirectly related to more dividends. An important additional finding of this paper is that the level of leverage shapes dividend yields differently in the presence of stable payouts and stable dividends per share. Furthermore, the dividend yield reflects a positive valuation of investors if the growth in dividends is linked to the growth in earnings for firms with higher growth expectations, as a policy of a stable payout appears to be viewed by investors as not jeopardizing future growth. As dividend policy is a key part of Finance research, our study contributes to the theory twofold. First, by focusing on a specific niche not developed by literature, and second by examining the indirect effects of the traditional determinants of dividend policy.

An Empirical Analysis of Determinants of Dividend Policy of Indian Real Estate Sector

2019 ◽  
Vol 20 (1) ◽  
pp. 116-149
Author(s):  
Rakesh Sharma
Keyword(s):  
Real Estate ◽  
Dividend Policy ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Firm Risk ◽  
Firm Level ◽  
Dividend Payout ◽  
Explanatory Variables ◽  
Real Estate Sector ◽  
Price Earnings Ratio

This paper studies the determinants of dividend policy by analyzing the 125 real estate companies in India. To find out what determines dividend policy, ten firm-level explanatory variables are selected and regressed against the dividend policy measure dividend payout ratio. This study employs three measures of panel data analysis to discover the important determinants of the dividend payout ratio. Empirical findings indicate that firm risk as measured through price-earnings ratio (P/E Ratio), previous dividend, investment opportunities, and profitability have positive associated with a dividend payout ratio of selected real estate firms. On the other hand, the size of the firm, leverage, and liquidity significantly affect dividend payout ratios, and these variables have a negative relationship with a dividend payout ratio of the selected real estate firms. The present study shall be useful to different stakeholders of real estate companies.

scholarly journals Dividend Policy and Share Price Volatility: Evidence from Listed Non-Financial Firms in Sri Lanka

2021 ◽  
Vol 22 (1) ◽  
pp. 227-239
Author(s):  
Lingesiya Kengatharan ◽  
Jeyan Suganya Dimon Ford
Keyword(s):  
Sri Lanka ◽  
Firm Size ◽  
Dividend Policy ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Yield ◽  
Financial Leverage ◽  
Explanatory Variables ◽  
Financial Firms ◽  
The Impact

The prime objective of this research is to investigate the impact of dividend policy on share price volatility in Colombo Stock Exchange (CSE). A sample of 81 listed non -financial firms from CSE in Sri Lanka is examined using panel data analysis for a five years period from 2013 to 2017. Dividend policy of the firms has been measured by dividend pay-out, dividend yield and dividend per share and which are explanatory variables of the study after controlling for firm size and financial leverage. According to the random effect regression analysis, only 25% of the movements in share prices are explained by the explanatory variables considered in this study. Dividend yield shows significant positive impact on share price volatility whereas dividend per share shows the significant negative impact on share price movements. Firm size illustrates significant negative influence on share price volatility by indicating large size of companies share price volatility is high. But, dividend pay-out and financial leverage are not significantly persuaded on share price volatility in this study. Therefore, it is concluded that dividend yield, dividend per share and firm size have significant impact on price volatility in Sri Lankan context and findings of the study are in line with the dividend relevance theory. Dividend policy can be considered as the protective mechanism to maintain share price volatility in order to enhance the shareholders wealth.

Causal Analysis of Hydrogen Acceptance

2005 ◽  
Vol 1941 (1) ◽  
pp. 115-121 ◽  
Author(s):  
Eric Molin
Keyword(s):  
Structural Equation Model ◽  
Indirect Effects ◽  
Structural Equation ◽  
Personal Characteristics ◽  
Causal Analysis ◽  
Equation Model ◽  
Factual Knowledge ◽  
Direct And Indirect Effects ◽  
Explanatory Variables ◽  
Willingness To Use

This paper presents and discusses a structural equation model on hydrogen acceptance. This model unravels the direct and indirect effects among personal characteristics, knowledge about hydrogen, perceptions, attitudes, and willingness to use hydrogen applications. In addition, indicators of differently colored information that can be provided by mass media have been included as explanatory variables. The estimated model indicates that colored information directly influences perceptions of hydrogen and indirectly influences attitudes about hydrogen and willingness to use it. In particular, negatively colored information decreases hydrogen acceptance, which cannot be counterbalanced by providing positively colored information. Furthermore, the model suggests that more factual knowledge about hydrogen increases its acceptance. The paper further discusses the likely development of hydrogen acceptance in the future and how practitioners can influence this.

Determinants of liquidity in Malaysian SMEs: a quantile regression approach

2018 ◽  
Vol 67 (9) ◽  
pp. 1566-1584 ◽  
Author(s):  
Shaista Wasiuzzaman
Keyword(s):  
Regression Analysis ◽  
Quantile Regression ◽  
Emerging Market ◽  
Developed Countries ◽  
Data Availability ◽  
Firm Level ◽  
Liquidity Management ◽  
Ols Regression ◽  
Content Type ◽  
Quantile Regression Analysis

PurposeThe management of liquidity has always been seen as a critical but often ignored issue in finance. Despite the abundance of studies on liquidity management, these studies mainly focus on developed countries and on large firms. Liquidity is critical for the small firm but studies on liquidity management in small and medium enterprises (SMEs) are lacking. The purpose of this paper is to examine the firm-level determinants of liquidity of SMEs in Malaysia.Design/methodology/approachData are collected for a total of 986 small firms in Malaysia from 2011 to 2014, resulting in a total of 2,683 observations. Firm-specific variables and the effect of the economy are considered as the possible determinants of liquidity. Ordinary least squares (OLS) regression analysis with standard errors adjusted for firm-level clustering and quantile regression analysis are used for this purpose.FindingsAnalysis using OLS regression technique indicates that a firm’s profitability, its growth, asset tangibility, size, age and firm status are significant factors in influencing its liquidity decision. Leverage and economic condition are not found to have any significant influence on liquidity. However, quantile regression analysis provides a different picture especially for SMEs with liquidity at the quantile levels ofθ=0.10 and 0.90. Atθ=0.10, only profitability, tangibility and firm status are significant, while atθ=0.90, tangibility, size, firm status and, to some extent, age are significant in influencing liquidity levels.Originality/valueTo the author’s knowledge, this is the first study analyzing the liquidity decision of SMEs in an emerging market such as Malaysia. Most studies on liquidity management of SMEs are focused on developed countries due to data availability but these studies are also only a handful. Additionally, this study uses quantile regression analysis which highlights the need to analyze financial decisions at different levels rather than at the aggregate level as done in OLS regression analysis.

The role of collective bargaining in addressing flexibility and security

2017 ◽  
Vol 23 (4) ◽  
pp. 329-346 ◽  
Author(s):  
Valentina Paolucci
Keyword(s):  
Collective Bargaining ◽  
Industrial Relations ◽  
Organizational Characteristics ◽  
Considerable Degree ◽  
Firm Level ◽  
Explanatory Variables ◽  
Institutional Structures ◽  
Union Representation ◽  
Multi Level

This article examines the role of collective bargaining in addressing flexibility and security in the chemical and pharmaceutical sector in Italy and Denmark. My multi-level and comparative focus on collective bargaining highlights that sector-level industrial relations institutions account for a considerable degree of within-country homogeneity in the content of company agreements over issues of flexibility and security. Moreover, it shows that the degree of company-level heterogeneity is conditioned primarily by firm-level contingencies: union representation and organizational characteristics. This means that at company level, both institutional and non-institutional structures are important explanatory variables.

Impacts of Chinese imports and coping strategies of local producers: the case of small-scale footwear enterprises in Ethiopia

2007 ◽  
Vol 45 (4) ◽  
pp. 647-679 ◽  
Author(s):  
Tegegne Gebre-Egziabher
Keyword(s):  
Coping Strategies ◽  
Domestic Market ◽  
Small Scale ◽  
Collective Actions ◽  
Firm Level ◽  
Profit Margins ◽  
Level Data ◽  
Size Of Firms ◽  
And Coping ◽  
The Impact

ABSTRACTThe footwear sector in Ethiopia is dominated by cheap imports from Asia, particularly from China. This has inflicted heavy impacts on the sector, and threatened its competitiveness in the domestic market. This study examines the impact of imports and coping strategies of firms to withstand the competition. Firm level data were gathered from micro, small and medium footwear enterprises. The findings revealed that Chinese shoes are superior in design, price and quality, with the result that they have taken over the domestic market. The impact of Chinese imports on local producers varied from downsizing, bankruptcy, loss of assets and property, to downgrading activities and informalising operations. Firms have pursued coping strategies that focused on improving design and quality, as well as lowering prices and profit margins. Coping strategies appear to be differentiated by size of firms, and have some association with the performance of firms. The ways forward for local producers should focus on collaborative engagements of stakeholders and government to overcome the competitive disadvantages of firms. Training, technology, quality control, benchmarking and reorganization of production should be designed as a package of intervention. In addition, strengthening local producers to engage in collective actions and promoting exports should also be given proper attention.

Introduction to Simple Mediation Analysis in SPSS

2015 ◽  
Vol 7 (1) ◽  
pp. 62 ◽  
Author(s):  
Nitika Sharma
Keyword(s):  
Causal Relationship ◽  
Direct Effect ◽  
Indirect Effect ◽  
Mediation Analysis ◽  
Indirect Effects ◽  
Regression Analyses ◽  
Mediation Model ◽  
Ols Regression ◽  
Mediator Variable

Data is analyzed using Mediation model which focuses on the estimation of the indirect effect of X on Y through an intermedi - ary mediator variable M causally located between X and Y (i.e., a model of the form X ? M ? Y ) 1 , where X is the input variable, Y is output and M is the Mediating Variable. When researchers want to examine that how X variable exert it effects on Y variable which is commonly intervened by one or two variables denoted by M and this variable has a causal relationship between X & Y as per Figure 1 and termed as Simple Mediation Model. In this casual system there is at least one casual antecedent X variable is projected as influencing an outcome Y through a single inter - vening variable M . Such model establishes two pathways which influences Y by direct effect and indirect effect. In direct effect, pathways lead from X to Y without passing M. In indirect effects, a pathway of X to Y is lead through M. There are two conse - quent variables forming two equations and these equations can be estimated by conducting OLS regression analyses using SPSS or by using PROCESS.sps in SPSS by Andrew F. Hayes. To add PROCESS by Andrew F. Hayes in SPSS.

scholarly journals Quality of governance and the construction of governance indices: evidence from Spain

2007 ◽  
Vol 5 (1) ◽  
pp. 355-371
Author(s):  
Eloisa Pérez de Toledo ◽  
Evandro Bocatto
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Investor Protection ◽  
Extensive Literature ◽  
Firm Level ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
Future Growth

Corporate governance is a set of mechanisms relevant to economic efficiency since it can minimize agency problems. The question is to determine how governance and firm performance interact. Recent research shows that firm-level corporate governance mechanisms are more important in countries with low investor protection, suggesting that firms can partially compensate for ineffective legal environments. Within this context, the objective of this paper is to construct a robust proxy for quality of corporate governance for the Spanish public companies. Thus, after providing an extensive literature review on the field of corporate governance and its interaction with firm performance, we construct a governance index (GOV-I) for a sample of 97 Spanish non-financial public companies. Finally, we assess the determinants of governance in the case of Spain. The results show a significant relationship between governance and performance, future growth opportunities and size, demonstrating that Spanish firms adopt better standards of governance to compensate for the low level of investor protection holding in the country.

scholarly journals Mechanism for developing a dividend policy, basic algorithms

2020 ◽  
pp. 122-130
Author(s):  
U. S. Karimov
Keyword(s):  
Financial Markets ◽  
Corporate Finance ◽  
Dividend Policy ◽  
High Mobility ◽  
Dividend Yield ◽  
Market Environment ◽  
Main Emphasis ◽  
Financial Mechanism

The article is devoted to the strategic block of corporate finance – the formation of the mechanism of dividend policy in the company and its role in the processes of accumulation and distribution of property. Since financial markets are characterized by high mobility and volatility, the dividend policy and the financial mechanism of corporations are constantly evolving. The article considers the main dividend practices and theories that allowed us to obtain a high dividend yield. The paper makes the main emphasis on the forms of payments, the main stages of the formation of the dividend policy, industry features affecting the dividend mechanism and the possibilities of optimization and adaptation to the existing market environment. The article offers recommendations for the stage-by-stage formation of the mechanism of dividend policy in the company in the field of retail.

scholarly journals Impact of dividend policy on stock price volatility and market value of the firm: evidence from Sri Lankan manufacturing companies

2016 ◽  
Vol 13 (3) ◽  
pp. 219-225 ◽  
Author(s):  
UGVDD Gunarathne ◽  
WAN Priyadarshanie ◽  
SMRK Samarakoon
Keyword(s):  
Dividend Policy ◽  
Negative Impact ◽  
Price Volatility ◽  
Market Value ◽  
Share Price ◽  
Sri Lankan ◽  
Manufacturing Companies ◽  
Dividend Yield ◽  
Dividend Payout ◽  
The Impact

The impact resulted from the dividend policy of a firm on the volatility of the market value of stocks is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned on the maximization of stock holders’ wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context in case of the market value of the firm while being contrary in case of the share price volatility. Accordingly, the firms’ ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.

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