scholarly journals Interactions between free cash flow, debt policy and structure of governance: Three stage least square simultaneous model approach: evidence from the Tunisian stock exchange

2012 ◽  
Vol 9 (2) ◽  
pp. 21-40 ◽  
Author(s):  
Ben Moussa Fatma ◽  
Jameleddine Chichti
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Least Square ◽  
Agency Conflicts ◽  
Governance Mechanism ◽  
Free Cash Flows ◽  
Debt Policy ◽  
Simultaneous Model

This research tests the efficiency of the ownership structure and the debt policy as mechanism of resolution of agency conflicts between shareholders and managers due to the problem of overinvestment, in the limitation of the problem of the free cash flow, by estimating three stage least square simultaneous model and on the basis of a sample of 35 non-financial Tunisian listed companies selected for the period 1999–2008. Our results are in favour of the theory of free cash flows of Jensen (1986) that stipulates that the debt policy represents the principal governance mechanism that can limit the risk of free cash flow. However, the ownership concentration and managerial ownership increase the risk of the free cash flow.

scholarly journals Corporate Governance and Firm Free Cash Flows: Evidence from Malaysia

2013 ◽  
Vol 5 (11) ◽  
pp. 531-537
Author(s):  
Razieh Adinehzadeh
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Audit Committee ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Governance Mechanism ◽  
Data Set ◽  
Corporate Governance Mechanism ◽  
Free Cash Flows ◽  
The Relationship

This study provides view of free cash flow and corporate governance (CG) by addressing the relationship between audit committee characteristics with free cash flow. Specifically, this study explores whether audit committee characteristics are substitutes to control agency problem regarding to free cash flow within Malaysian firms. The data set comprise of 200 firm observations Malaysian companies for four consecutive years, which comprise of 2005 to 2008. The results show that size of audit committee, frequency of audit committee meeting, proportion of audit committee independence is positively associated with level of free cash flow (FCF). The results of study highlight the importance of corporate governance mechanism, in the form of audit committee characteristics, in the management of cash flow.

scholarly journals The Role of Dividend Payout in the Determination of the Relationship Between Earnings Before Interest and Tax Cash Flow From Operations, Capital Expenditures and Firm Sustainable Cash Flows: A Case Of Non-Financial Firms

2018 ◽  
pp. 382-390
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Capital Expenditures ◽  
Dividend Payout ◽  
Financial Firms ◽  
Free Cash Flows

The prime objective of the current study is to determine the predictive ability to earnings before interest and tax, cash flow from operations, dividend payout, and capital expenditures for free cash flows. In addition to the current study is also intended to highlight the moderating role of dividend payout predictive ability to earnings before interest and tax, cash flow from operations, and capital expenditures for free cash flows. To achieve the objective of the study the data of 100 listed non-financial firms are collected from the annual report of the firms listed on the Iraq Stock Exchange. The data is collected over a period of six years from 2012-2017. To achieve the first set of objective regarding the direct results we have chosen OLS as a final statistical test after undergoing basic diagnostic analysis. To achieve the second set of objectives regarding the indirect effect of dividend payout, we have used the hierarchical multiple regression models.The statistical software, STATA is used for the analysis purpose. The findings of the study have shown a great deal of agreement with hypothesized results and also provided support to the pecking order theory and theory of free cash flow. The findings of the study will be helpful for policymakers, investors, scholars, and students in understanding the key factors which affect the free cash flow decisions and determine its predictability.

scholarly journals Ownership Structure and Cash Flows As Determinants of Corporate Dividend Policy in Pakistan

2010 ◽  
Vol 3 (3) ◽  
pp. 210 ◽  
Author(s):  
Talat Afza ◽  
Hammad Hassan Mirza
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Cash Flows ◽  
Least Square ◽  
Flow Sensitivity ◽  
Cash Flow Sensitivity ◽  
Operating Cash Flow ◽  
The Impact ◽  
Individual Ownership

Dividend Policy is among the widely addressed topics in modern financial literature. The inconclusiveness of the theories on importance of dividend in determining firm’s value has made it one of the most debatable topics for the researchers (see for example, Ramcharan, 2001; Frankfurter et. al 2002; Al-Malkawi, 2007). The present study investigates the impact of firm specific characteristics on corporate dividend behavior in emerging economy of Pakistan. Three years data (2005-2007) of 100 companies listed at Karachi Stock Exchange (KSE) has been analyzed using Ordinary Least Square (OLS) regression. The results show that managerial and individual ownership, cash flow sensitivity, size and leverage are negatively whereas, operating cash-flow and profitability are positively related to cash dividend. Managerial ownership, individual ownership, operating cash flow and size are the most significant determinants of dividend behavior whereas, leverage and cash flow sensitivity do not contribute significantly in determining the level of corporate dividend payment in the firms studied in our sample. Estimated results are robust to alternative proxy of dividend behavior i.e. dividend intensity.

scholarly journals PENGARUH FREE CASH FLOW, INVESTMENT OPPORTUNITY SET, MANAGERIAL OWNERSHIP TERHADAP DIVIDEN POLICY MELALUI DEBT POLICY SEBAGAI PEMEDIASI

2019 ◽  
Vol 1 (2) ◽  
pp. 40-59
Author(s):  
Luh Nik Oktarini ◽  
Putu Atim Purwaningrat
Keyword(s):  
Data Analysis ◽  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Investment Opportunity ◽  
Investment Opportunity Set ◽  
Debt Policy ◽  
Program Version

The purpose of this study was to determine the effect of free cash flow to debt policy to determine the influence of investment opportunity set against debt policy to determine the effect of managerial ownership on debt policy  to determine the effect of free cash flow to the dividend policy to determine the effect of managerial ownership to dividend policy. This research was conducted on manufaktur companies listed in Indonesia Stock Exchange 2011-2015 period. Methods of data collection is done by using the method of documentation. Data analysis with path analysis with AMOS program version 20. The results showed  the effect of variable free cash flow to debt policy is significant, effect of variable investment opportunity set against debt policy is significant, the effect of managerial ownership variable against debt policy is not significantly, the effect of variable free cash flow toward dividend policy is not significant,  the effect of managerial ownership variable to dividend policy is a significant and indirect influence of the variable investment opportunity set against the dividend policy through debt policy is significant.

scholarly journals Free Cash Flows, Management Ownership, Dividend Policy, and Debt Policy

2020 ◽  
Vol 19 (1) ◽  
pp. 30
Author(s):  
Ardhya Yudistira Adi Nanggala
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Financial Statements ◽  
Cash Flows ◽  
Managerial Ownership ◽  
Management Ownership ◽  
Free Cash Flows ◽  
Debt Policy

This study aims to identify and examine empirically effect of free cash flows, managerial ownership and dividend policy on debt policy (empirical study on companies listed on Stock Exchange). This study uses secondary data in form of financial statements derived from annual financial statements of companies listed on Stock Exchange and available reporting consecutive years from 2012 to 2017. Samples were taken by purposive sampling with first criteria company's annual financial statement data available for consecutive reporting years from 2012 to 2017. Number of samples in this study 132 firm years. Data analysis methods used in this study is multiple linear regression analysis. Results showed that: free cash flows and managerial ownership has a significant positive effect on debt policy. Dividend policy have a significant negative effect on debt policy. Keywords: Free cash Flows, Management Ownership Dividend Policy, Debt Policy

scholarly journals FACTORS THAT DETERMINE DIVIDEND POLICY ON BANKING IN THE INDONESIA STOCK EXCHANGE

2019 ◽  
Vol 18 (2) ◽  
pp. 145
Author(s):  
Mega Febriani ◽  
Farah Margaretha
Keyword(s):  
Cash Flow ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Secondary Data ◽  
Free Cash Flow ◽  
Least Square ◽  
Board Structure ◽  
Growth Opportunity ◽  
Managerial Implications ◽  
Financial Characteristics

<p><em>The problem of this research was to test and analyze empirically the influence to financial characteristics, ownership structure and board structure that have significant effects on dividend decisions. The objective of this research was banking firm that listed in Indonesian Stock Exchange for period 2010-2017. The  methodology of this research was applies purposive sampling. The data obtained in this the secondary data was taken from Indonesian Stock Exchange. This research was panel least square model and processed using software eviews 9. Total number of samples is 27 companies. The purpose of this test is to prove the effect of the independent variables on the dependent variable.The result of this research shows that the financial characteristics, significant effected dividend decisions, meanwhile profitability, likuidity, free  cash  flow. Growth opportunity, age, size, leverage and asset tangibility does not effects the dividend decisions. Ownership structure significant effected dividend decisions, meanwhile institusional ownership and goverment ownership. And board structure significant effected dividend decisions, meanwhile independen director. The Managerial Implications from this research are how the company manages the capital sources from free cash flow and likuidity, how to make the company can be efficient in running the company and make earning.</em></p>

scholarly journals The Effect of Firm Sizes, Profitability, Dividend Policy, Asset Structure, Sales Growth and Free Cash Flow on Debt Policy

2020 ◽  
Vol 4 (1) ◽  
pp. 100-119
Author(s):  
Ria Nurdani ◽  
Ika Yustina Rahmawati
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Free Cash Flow ◽  
Sales Growth ◽  
Manufacturing Companies ◽  
Company Growth ◽  
Debt Policy

The study aims to examine the effect of company size, profitability, dividend policy, asset structure, company growth and free cash flow on debt policy. The object of this study uses manufacturing companies listed on the Indonesia Stock Exchange. The data used is secondary data in the form of annual financial statements for the 2015-2018 period. The collection technique used in this study was purposive sampling while the data analysis techniques used in this study were descriptive statistics, classic assumption tests, multiple regression analysis and hypothesis testing. The analysis show that the size of the company has a negative and not significant effect on debt policy, profitability has a negative and significant effect on debt policy. Dividend policy variables and asset structure has a negative and significant effect on debt policy. While sales growth and free cash flow has no effect on debt policy.

scholarly journals PERAN PROFITABILITAS DALAM MEMODERASI PENGARUH FREE CASH FLOW TERHADAP KEBIJAKAN DIVIDEN DI INDONESIA

2019 ◽  
Author(s):  
Angga Dwi Putra ◽  
Irdha Yusra
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Least Square ◽  
Sample Collection ◽  
Moderating Variables ◽  
Ordinary Least Square ◽  
Negative Effect ◽  
Operational Activity

Basically, every company requires capital in order to finance their operational activity and to expand their business so capital becomes one of the important elements in a company. When the capital which is owned by the company is large the operational activity that can be conducted is large as well. This research is meant to test the influence of free cash flow on dividend policy with profitability as a moderating variable. The population is all companies which are listed in Indonesia Stock Exchange in 2013-2017 periods. The sample collection technique has been carried out by using purposive sampling method and based on the predetermined criteria, 26 companies have been selected as samples. The data of the financial statement of the companies has been obtained from the official website of IDX. The analytical method used is regression analysis with moderating variables using the SPSS application. Preliminary tests were carried out namely testing the classical assumptions to assess whether in an ordinary least square linear regression model there is a problem of classical assumptions, and testing to see the effect of moderation in influencing the relationship between independent variables and the dependent variable. The results of this observation state that free cash flow has a negative effect on dividend policy, free cash flow has a positive effect on dividend policy with profitability as a moderating variable

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