scholarly journals What drives the dividend decisions in BRICS countries?

2021 ◽  
Vol 12 (3) ◽  
pp. 593-629
Author(s):  
Urszula Mrzygłód ◽  
Sabina Nowak ◽  
Magdalena Mosionek-Schweda ◽  
Jakub M. Kwiatkowski
Keyword(s):  
Dividend Policy ◽  
Value Added ◽  
Listed Companies ◽  
Stock Exchanges ◽  
Relevant Market ◽  
Firm Level ◽  
Brics Countries ◽  
Dividend Smoothing ◽  
The Individual ◽  
Retained Earnings

Research background: We examine the dividend payout policies across companies listed on the main stock exchanges in Brazil, Russia, India, China, and South Africa (BRICS). Unlike the highly developed capital markets, the literature regarding dividend policy on BRICS? stock exchanges is scarce.  Purpose of the article: The purpose of this paper is threefold: verification of the existence of dividend smoothing pattern; selection of the significant drivers that affect both dividend levels and dividend smoothing; examination of differences between dividend policy of cross- and single-listed companies. Methods: Based on a dataset of 564 companies that paid dividends for at least 11 consecutive years in the period of 1995?2015, we apply a GMM two-step estimator to assess the speed of dividend adjustment (SOA) coefficient. Further we employ the linear panel regression to indicate the individual and market determinants of the dividend levels and SOAs. In the latter case, we base on time series of the SOAs obtained from the rolling estimation technique. Finally, we conduct separate estimations for cross-listed companies. Findings & value added: We confirm a moderate level of dividend smoothing within BRICS countries. Among the firm-level characteristics affecting the SOA the most important are: ownership dispersion, age and size of a firm, retained earnings, leverage, long term debt, asset tangibility, liquidity risk ratio, and issuing the depositary receipts (DR). Two relevant market factors are found: market capitalisation and turnover in relation to GDP. Similar characteristics have a significant impact on dividends? levels in the entire sample, whereas in the subsample of cross-listed companies fewer variables are significant. Our paper is the first comprehensive attempt to investigate the dividend policy and determinants of dividend smoothing among BRICS countries.

scholarly journals Golden homes and gardens: Shift in demand by German consumers due to COVID-19 pandemic

2021 ◽  
Vol 129 ◽  
pp. 01010
Author(s):  
Neele Hiemesch-Hartmann
Keyword(s):  
Value Added ◽  
Secondary Market ◽  
Relevant Market ◽  
Long Distance ◽  
Systematic Analysis ◽  
Private Lives ◽  
Market Shares ◽  
The Public Sphere ◽  
The Many ◽  
The Individual

Research background: The COVID-19 pandemic led to a change in consumer demand behavior worldwide. Due to the pandemic, individual sectors and industries experienced enormous demand or significant decreases in demand. Hardly any sector or industry remained unaffected by the influences and consequences of the COVID-19 pandemic. Due to the many worldwide restrictions of private travel, many German consumers stayed in their home country. German tourists are internationally regarded as world champions in travel, so the lack of private long-distance travel led to implications for other sectors. Another trend that has emerged in the wake of the COVID-19 pandemic is the so-called cocooning. Cocooning is the term used by trend researchers to describe a tendency for consumers to increasingly withdraw from civil society and the public sphere into their private lives at home. This combination of a lack of private travel and a retreat into private domestic life has led to enormous growth in the furniture, household goods, garden, and home improvement sectors. Purpose of the article: The pandemic-related shift in demand is examined using secondary market data. These are first systematically researched, reviewed, and analyzed. Then, by using growth figures, the German home and garden market is examined based on sales figures and pandemic-related changes are shown. Furthermore, the individual sales channels, the relevant market players, and market shares under the pandemic’s influence will be analyzed. Methods: Systematic analysis of market information and datasets in the home and gardening sector in Germany. Findings & Value added: Creation of an information base regarding the shift in demand of German consumers in the wake of the COVID-19 pandemic.

Mandatory Dividend Policy, Growth, Liquidity and Corporate Governance: Evidence from Chile

2020 ◽  
Vol 23 (03) ◽  
pp. 2050025 ◽  
Author(s):  
Sakthi Mahenthiran ◽  
David Cademartori ◽  
Tom Gjerde
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
American Economic Review ◽  
Market Liquidity ◽  
Governance Mechanism ◽  
Minority Shareholders ◽  
Dividend Smoothing ◽  
Corporate Governance Mechanism ◽  
Pros And Cons ◽  
Retained Earnings

Chilean publicly listed companies are required by law to pay out a minimum 30% of distributable earnings after taxes as dividends on common stock. The study extends Lintner’s [Lintner, J (1956). Distribution of incomes of corporations among dividend retained earnings and taxes. American Economic Review, 46, 97–113.] model of dividend smoothing and Banerjee [Banerjee, S, VA Gatchev and PA Spindt (2007). Stock market liquidity and firm dividend policy. Journal of Financial and Quantitative Analysis, 42(2), 369–398.] logistic model of the likelihood of a firm paying a dividend to investigate the signaling, liquidity, corporate governance, and information risk-based theories of dividends. The results show that Chilean firms’ excess dividends are smoothed in relation to the prior period level of excess dividends, and lagged earnings do not drive excess dividends even though the mandatory minimum dividend is defined in terms of lagged earnings. This insight establishes that dividend decisions regarding the size of the excess dividend and the likelihood of paying an excess dividend are distinct from the mandatory dividend payment. Additionally, the size of excess dividends and their likelihood are higher at firms with higher growth opportunities, a result consistent with the use of excess dividends as a signaling device. Results also demonstrate that greater transparency is associated with a greater likelihood of paying an excess dividend, but transparency does not drive policy regarding the size of the excess dividend. Moreover, the corporate governance mechanism creditor monitoring influences the size of excess dividends but not the likelihood of paying excess dividends. These results have implications for securities regulators evaluating the pros and cons of a mandatory dividend policy to protect minority shareholders in emerging markets.

scholarly journals A COMPARATIVE STUDY ON ANALYSIS OF DIVIDEND DETERMINANTS OF SELECTED METAL AND CEMENT COMPANIES

2021 ◽  
Vol 4 (2) ◽  
pp. 50-56
Keyword(s):  
Regression Analysis ◽  
Comparative Study ◽  
Stock Prices ◽  
Dividend Policy ◽  
Listed Companies ◽  
Cement Industry ◽  
Metal Industry ◽  
Significant Determinant ◽  
Retained Earnings ◽  
Real Assets

Dividends are commonly defined as the distribution of earnings (past or present) in real assets among the shareholders of the firm in proportion to their ownership. (Frankfurter and Wood) Literature regarding dividend has questioned the importance given by investors in receiving stable payments in the form of dividend vis a vis capital required by companies. This paper attempts to throw light on determinants of dividend policy and how can certain factors be considered before making a dividend decision. Metal and cement and cement products sector from Nifty 50 listed companies have been selected to know the determinants of dividend and their impact on stock prices for 10 years starting from 2009 to 2019. Regression analysis has been used to analyze the data. This study found that the earning per share is the significant determinant of dividend policy in metal industry while in cement industry the retained earnings are the significant determinant of dividend policy.

scholarly journals Who Really Benefits from Consumption Tax Cuts? Evidence from a Large VAT Reform in France

2019 ◽  
Vol 11 (1) ◽  
pp. 38-63 ◽  
Author(s):  
Youssef Benzarti ◽  
Dorian Carloni
Keyword(s):  
Value Added ◽  
Consumption Tax ◽  
Difference In Differences ◽  
Firm Level ◽  
Employment Effects ◽  
Level Data ◽  
Price Effects ◽  
Firm Level Data ◽  
Material Goods ◽  
Firm Owners

This paper evaluates the incidence of a large cut in value-added taxes (VATs) for French sit-down restaurants in 2009. In contrast to previous studies, which only focus on the price effects of VAT reforms, we estimate the effects of the VAT cut on four groups: workers, firm owners, consumers, and suppliers of material goods. Using a difference-in-differences strategy on firm-level data, we find that: firm owners pocketed more than 55 percent of the VAT cut; consumers, sellers of material goods, and employees shared the remaining windfall with consumers benefiting the least; and the employment effects were limited. (JEL H22, H25, L83)

scholarly journals Women’s Economic Empowerment in Vietnam: Performance and Constraints of Female-Led Manufacturing SMEs

2021 ◽  
Vol 14 (6) ◽  
pp. 255
Author(s):  
MinhTam Bui ◽  
Trinh Q. Long
Keyword(s):  
Labor Productivity ◽  
Small And Medium Enterprises ◽  
Manufacturing Sector ◽  
Value Added ◽  
Medium Size ◽  
Formal Sector ◽  
Firm Level ◽  
Average Value ◽  
Significant Difference ◽  
Medium Enterprises

This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.

scholarly journals The Influence of Trading Locations on Equity Returns

2016 ◽  
Vol 12 (12) ◽  
pp. 188
Author(s):  
Nguyen N.T. Vo
Keyword(s):  
Risk Premium ◽  
Stock Price ◽  
Listed Companies ◽  
Equity Returns ◽  
Stock Exchanges ◽  
Home Market ◽  
Trade Effect ◽  
Market Index ◽  
Highly Correlated ◽  
The Impact

This paper evaluates the impact of trading locations on equity returns by examining the stock price behaviour of three Anglo-Dutch dual-listed companies which result from mergers where two corporations agree to function as a single operating business, but maintain separate identities. The shares of these stocks are traded not only in their home market but also on several US stock exchanges in the form of American Depository Receipts. Regressing the return differentials on these dual-listed and cross-listed stocks on the relative market index returns and currency changes provides evidence of an apparent violation of the Law of One Price. The regression results show that the return on each part of dual-listed companies is highly correlated with the market on which it is most intensively traded. Similarly, returns on cross-listed stocks have considerably higher co-movement with US market indices and considerably lower co-movement with home-market indices than their home-market counterparts. Market risk premium is not a significant explanatory variable of the location of trade effect.

scholarly journals Determinants of Firm Performance: Evidence from Romanian Listed Companies

2016 ◽  
Vol 9 (1) ◽  
pp. 53-69 ◽  
Author(s):  
Sebastian Lazăr
Keyword(s):  
Firm Performance ◽  
Fixed Effects ◽  
Value Added ◽  
Listed Companies ◽  
Sales Growth ◽  
Fixed Effects Model ◽  
Resource Based View ◽  
Firm Profitability ◽  
Negative Effect ◽  
Positive Effect

AbstractThe paper investigates firm-specific determinants of firm profitability for Romanian listed companies over the 2000-2011 period within the framework of resource based view of the firm. The results show that tangibles, leverage, size and labour intensity have negative effect on firm performance, while sales growth and value added have a positive effect. The results prove robust when introducing two-way fixed effects model and industry year effects model (in order to simultaneously account for specific industry characteristics and time effects).

Canada’s changing innovation landscape

2021 ◽  
Author(s):  
Md. Razib Alam ◽  
Bonwoo Koo ◽  
Brian Paul Cozzarin
Keyword(s):  
The United States ◽  
Destination Country ◽  
Firm Level ◽  
Individual Level ◽  
Patent Classification ◽  
The Usa ◽  
The Government ◽  
The Individual ◽  
The University ◽  
Over Time

Abstract Our objective is to study Canada’s patenting activity over time in aggregate terms by destination country, by assignee and destination country, and by diversification by country of destination. We collect bibliographic patent data from the Canadian Intellectual Property Office and the United States Patent and Trademark Office. We identify 19,957 matched Canada–US patents, 34,032 Canada-only patents, and 43,656 US-only patents from 1980 to 2014. Telecommunications dominates in terms of International Patent Classification technologies for US-only and Canada–US patents. At the firm level, the greatest number of matched Canada–US patents were granted in the field of telecommunications, at the university level in pharmaceuticals, at the government level in control and instrumentation technology, and at the individual level in civil engineering. We use entropy to quantify technological diversification and find that diversification indices decline over time for Canada and the USA; however, all US indices decline at a faster rate.

scholarly journals The Market Reaction to the Appointment of Women on Corporate Boards: Evidence from the Italian Listed Companies

2017 ◽  
Vol 12 (12) ◽  
pp. 64 ◽  
Author(s):  
Patrizia Pastore ◽  
Silvia Tommaso ◽  
Antonio Ricciardi
Keyword(s):  
Stock Price ◽  
Market Reaction ◽  
Abnormal Returns ◽  
Value Added ◽  
Listed Companies ◽  
Corporate Boards ◽  
Women Directors ◽  
Future Performance ◽  
Price Performance ◽  
Strategic Value

During the 2012-2016 period, a large number of Italian companies appointed women directors in their boards, an unusual and unpredictable fact in the Italian industrial system. This paper investigates if any significant reaction has consequently occurred in the Italian stock market. It assumes that a significant market reaction would indicate the investors view the female board members as a strategic value added at the decision making level. To achieve the objective, it was collected a database consisting of 76 appointments of women directors in 67 Italian listed companies over the period 2012-2016 and then it was investigated the stock price performance of those companies in that five years span. The research hypothesis is examined empirically through the event study methodology in order to check the existence of abnormal returns on the appointment of women directors. Findings suggest that investors do not strongly believe that the simple appointment of women directors would have a positive effect on the future performance of firms.

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