scholarly journals Modeling Dividend Behavior in Pakistan

2011 ◽  
Vol 3 (6) ◽  
pp. 289-301 ◽  
Author(s):  
Fazli Haleem
Keyword(s):  
Interest Rate ◽  
Dividend Policy ◽  
Manufacturing Sector ◽  
Share Price ◽  
Price Behavior ◽  
Relative Significance ◽  
Investment Demand ◽  
Net Profit ◽  
Better Than ◽  
Model Fits

This study examines the determinants of dividend policy by Lintner (1956) and Braittan (1966) and their extended versions to examine their relative significance in the Pakistani context. The sample consists of thirty-five firms in the overall manufacturing sector and three sub-sectors: textile, energy and chemicals the period 2007 to 2009. The analysis reveals that Lintner model is better than other models examined in the study and net profit and lag dividends are important determinants of dividend policy in Pakistani manufacturing sector. The depreciation and liquidity has significant impact on the dividend policy when included in the Lintner model while investment demand, interest rate, share price behavior and debt turn out to be insignificant. The results imply that for dividend decisions, past dividends, profits and depreciation matters and Lintner model fits the data well in case of manufacturing sector of Pakistan.

scholarly journals External macroeconomic shocks and stock price behavior in Nigeria

2021 ◽  
Vol 10 (6) ◽  
pp. 174-180
Author(s):  
Mojeed Olanrewaju Saliu
Keyword(s):  
Interest Rate ◽  
Stock Price ◽  
Real Interest Rate ◽  
Research Work ◽  
Estimation Method ◽  
Oil Price ◽  
Share Price ◽  
Price Behavior ◽  
Macroeconomic Shocks ◽  
Vector Autoregressive

This research work investigates the relationship between external macroeconomic shocks and stock price behavior in Nigeria. Variables such as exchange rate (EXR), US real interest rate (USRINTR), and world oil price (WOP) are adopted to capture external macroeconomic shocks while all share price index is used to proxy stock price. The research work uses Johansen cointegration and structural vector autoregressive model as the estimation method. Findings from the study confirm that no long-term co-movement exists between the stock price and the selected external shocks. Findings from the study equally show that both US real interest rate (USRINTR) and world oil price (WOP) are the major external shock predictors of the stock price in Nigeria.

Pengaruh Profitabilitas, Likuiditas, Solvabilitas, Dan Kebijakan Dividen Terhadap Harga Saham

2013 ◽  
Vol 5 (2) ◽  
pp. 81-98
Author(s):  
Hans Christian Pranata ◽  
Ratnawati Kurnia
Keyword(s):  
Dividend Policy ◽  
Secondary Data ◽  
Financial Statements ◽  
Profit Margin ◽  
Share Price ◽  
Current Ratio ◽  
Dividend Payout ◽  
Net Profit ◽  
Equity Ratio ◽  
The Impact

The objective of this research is to examine the impact of profitability, liquidity, leverage, and also dividend policy partially and simultaneously towards share price. The profitability is proxied by Net Profit Margin (NPM), liquidity is proxied by Current Ratio (CR), leverage is proxied by Debt-to-Equity Ratio (DER), and dividend policy is proxied by Dividend Payout Ratio (DPR). The objects of this study are companies which have listed in Indeks Kompas100 in period 2009-2011. The samples are 17 companies determined based on purposive sampling. Data used in this study is secondary data such as financial statements and daily share price. The result of this study are (1) profitability proxied by Net Profit Margin has partial positive significant impact to share price (2) liquidity proxied by Current Ratio does not have partial negative significant impact to share price (3) leverage proxied by Debt-to-Equity Ratio does not have partial negative significant impact to share price (4) dividend policy proxied by Dividend Payout Ratio has partial positive significant impact to share price (5) profitability, liquidity, leverage, and dividend policy simultaneously have significant impact to share price. Keywords: profitability, liquidity, leverage, dividend policy, Net Profit Margin (NPM), Current Ratio (CR), Debt-to-Equity Ratio (DER), Dividend Payout Ratio (DPR), share price.

Company Dividend Policy Models: Neutral Approach

2020 ◽  
Vol 3 ◽  
pp. 40-52
Author(s):  
Sergey Krylov
Keyword(s):  
Policy Implementation ◽  
Stock Price ◽  
Dividend Policy ◽  
Share Price ◽  
Marketing Performance ◽  
Implementation Approach ◽  
Policy Models ◽  
Price Earnings Ratio ◽  
Effective Instrument ◽  
Dividend Irrelevance

The article treats a concept of the formalized modeling of the dividend policy scores and company marketing performance scores derived (stock market position) within neutral dividend policy implementation approach conditions as an instrument of the scores analysis and forecasting. The methodology of the research consists of the Dividend Irrelevance theory, Dividend Policy Significance theory and sustainable company development concept. It has been stated that a formalized approach of the dividend policy implementation presumes a construction of the basic relevant scores models characterizing the company dividend policy and its marketing performance as Dividend Payout, Dividend Cover, expected Share Price, Dividend Yield, Price / Earnings Ratio (common stock price/earnings ratio). The formalized models of the scores mentioned are applicable for a forecast-analytical scores evaluation and their variances as well by estimating an impact of the models defining factors exercised by the appropriate factoring analysis method within the neutral dividend policy implementation approach conditions. The conclusion is drawn, that the formalized models of the dividend policy scores and company marketing performance scores derived, having been developed, are an effective instrument for their forecasting and analysis so that proactive decisions to manage the company dividend policy implementation within neutral approach conditions are ensured.

scholarly journals Influencing Factors of Stock Price in Nepal

NCC Journal ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 113-120
Author(s):  
Krishna Bahadur Thapa
Keyword(s):  
Interest Rate ◽  
Stock Market ◽  
Influencing Factors ◽  
Stock Price ◽  
Stock Exchange ◽  
Positive Association ◽  
Share Price ◽  
Financial Statement ◽  
Inverse Association ◽  
Significant Positive Association

This paper explores the influencing factors of stock price in Nepal (with reference to Nepalese commercial banks) listed on the Nepal Stock Exchange Ltd. over the period of 2008 to 2018AD. The information were collected from questionnaire and financial statement of concerned organizations and analyzed using simple linear regression model. The conclusions of the work revealed that earning per share (EPS), dividend per share (DPS), effective rules and regulations, market whims and rumors, company profiles and success depend upon luck have the significant positive association with share price while interest rate (IR) and price to earnings ratio (PER), showed the significant inverse association with share price. Further, accessibility of liquidity, fundamental and technical analysis stimulates the performance of the Nepalese stock market. More importantly, stock market has been found to respond significantly to changes in dividend and interest rate.

scholarly journals Heterogeneity in the Relationship Between NPLs and Real Economy: Evidence from the Mongolian Banking System

2021 ◽  
Vol 10 (2) ◽  
pp. 133-155
Author(s):  
Enkhzaya Demid
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Manufacturing Sector ◽  
Banking System ◽  
Real Economy ◽  
Economic Sectors ◽  
Macroeconomic Shocks ◽  
Credit Quality ◽  
Loan Supply ◽  
The Relationship

Abstract The paper analyses the relationship between the banks’ credit risk and macroeconomic conditions by addressing the following questions; (i) How are macroeconomic shocks transmitted to lending risk depending on the ban-specific features? (ii) Are the effects of macroeconomic shocks different across the loan portfolios in various economic sectors? Unlike the common assumption in the literature, the empirical analysis considers banks’ heterogeneity and diversification across borrowers. It employs heterogeneous panel SVARs and standard SVAR models on a dataset from 2002. Q1 to 2019.Q1. The results suggest that the deterioration in credit quality is affected by both macroeconomic and bank-specific factors, with substantial heterogeneity in the magnitudes and timing in terms of the type of loans in various business sectors and bank characteristics. In particular, we find strong evidence of cyclical sensitivity of loan quality, and about 1/4 of banks’ NPLs increases stronger in response to the shocks to growth, exchange rate, interest rate, and profitability. The highly profitable banks tend to less engage in excessive risk-taking, resulting in lower NPLs, whereas the relation of asset size to NPLs is not significant for the sample. A growth shock plays a prominent role in explaining the variation of NPLs for the trade and mining sectors. Similarly, the loan supply shock is the main determinant for the construction sector’s NPLs, while the exchange rate shock is the most responsible for the manufacturing sector. The interest rate shock and exchange rate shock are the most effective factors on NPLs of consumer loans. Finally, the feedback effect of NPLs shows that deterioration of credit quality slows down economic growth.

scholarly journals Pengaruh Rasio Likuiditas, Rasio Profitabilitas dan Rasio Pasar terhadap Kebijakan Dividen pada Perusahaan Rokok

2017 ◽  
Vol 1 (1) ◽  
pp. 1-11
Author(s):  
Evelyn Wijaya
Keyword(s):  
Linear Regression ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Profit Margin ◽  
Current Ratio ◽  
Financial Factors ◽  
Earnings Per Share ◽  
Net Profit

  The research on financial factors and its effect to dividend policy of Company which is listed in Indonesia Stock Exchange have been carried out by several researchers, but the results showed inconsistent. This research aims to test the influence of liquidity ratio, profitability ratio, market ratio, and its effect on dividend policy of Cigarette Company. The liquidity ratio proxied by Current Ratio, profitability ratio proxied by Net Profit Margin, market ratio proxied by Earning Per Share, and dividend policy proxied by Dividend Per Share. The sample used are 3 companies, listed in IDX period of 2001-2014. Data used in this study is secondary data by using financial statements. The Data analyzed using multiple linear regression. The result showed that net profit margin has a significant effect on dividend per share whereas current ratio and earnings per share has no significant effect on dividend per share of cigarette company which listed in IDX period of 2004-2014. Keywords : Liquidity Ratio, Profitability Ratio, Market Ratio, Dividend Policy.

scholarly journals Dividend Policy and Share Price Fluctuations of Sampled Quoted Nigerian Companies

2017 ◽  
Vol 5 (11) ◽  
Author(s):  
Festus Oladipupo Olaoye ◽  
Babajide Olumuyiwa Owoniya
Keyword(s):  
Dividend Policy ◽  
Share Price ◽  
Price Fluctuations

Effect of Dividend Policy on Stock Price Volatility in Nigeria Stock Exchange

2019 ◽  
Vol 9 (2) ◽  
pp. 219
Author(s):  
Felix Ebun Araoye ◽  
Akinola Michael Aruwaji ◽  
Emmanuel OlusuyiAjayi
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Payout ◽  
Share Prices ◽  
Duration Effect

This paper seeks to determine the effect of dividend policy and dividend payment on share price volatility in Nigeria. Several literatures have showed evidence that dividend policy vary inversely proportional with share price volatility with duration effect. The study used data from the actively trading companies listed in the Nigeria Securities Exchange for a period of ten (10) years from 2005–2014. The estimation is based on panel data analysis between dividend policy measures (dividend payout, dividend per share, earnings after tax, dividend declared and number of share) and Share price volatility. The findings from the random effects regression results showed dividend per share is the major determinants of share price volatility in NSE (β = 0.6870, ρ<0.05). Dividend payout ratio negatively affect share price volatility (β =0.612, ρ>0.05) and earnings after tax negatively affect share price volatility (β =0.038, ρ>0.05).Thus, the higher the payout ratio the less the share price volatility, and the higher the earnings after tax lower the share price volatility. In conclusion, dividend per share has positive effect and inclusive relationship with market share prices. It is recommended that firms should try and improve on their financial performance that will enable consistent increase in the dividend per share for positive impact on market value.

scholarly journals “WAIT-AND-SEE” MONETARY POLICY

2017 ◽  
Vol 23 (5) ◽  
pp. 1793-1814 ◽  
Author(s):  
Xiaowen Lei ◽  
Michael C. Tseng
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Interest Rates ◽  
Taylor Rule ◽  
Adjustment Costs ◽  
Optimal Timing ◽  
Bank Of Canada ◽  
Wait And See ◽  
The Interest Rate ◽  
Better Than

This paper develops a model of the optimal timing of interest rate changes. With fixed adjustment costs and ongoing uncertainty, changing the interest rate involves the exercise of an option. Optimal policy therefore has a “wait-and-see” component, which can be quantified using option pricing techniques. We show that increased uncertainty makes the central bank more reluctant to change its target interest rate, and argue that this helps explain recent observed deviations from the Taylor Rule. An optimal wait-and-see policy fits the target interest rates of the Fed and Bank of Canada better than the Taylor Rule.

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