scholarly journals Kebijakan Dividen dari Perspektive Agency Cost Model (Studi Kasus Perusahaan yang Terdaftar di Bursa Efek Indonesia periode 2011-2013)

2016 ◽  
Vol 5 (1) ◽  
pp. 73
Author(s):  
Akhmad Hitten
Keyword(s):  
Cash Flow ◽  
Ownership Structure ◽  
Cost Model ◽  
Investment Decisions ◽  
Listed Companies ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Dividend Policies ◽  
Main Model ◽  
Observation Period

The paper examines the influence of agency theory on dividend policies with free cash flow,maturity, capital structure, and ownership dividend variables. The sample used in this research isIndonesian listed companies with observation period from 2010 to 2013, and the data collectiontechnique used is data pooling or merging data. The data is analyzed with multiple linearregression analysis in SPSS program. The result of this study indicates that free cash flow,maturity, and ownership structure do not influence devidend policies, however capital structureinfluences dividend policies in Indonesian listed companies. The research also implies thatagency cost theory, as the main model of relevance dividend preposition, cannot explaindividend policies in Indonesian Companies. The investors cannot rely solely on dividend policiesin term of investment decisions in the future. 

scholarly journals OWNERSHIP STRUCTURE, DIVIDEND PAYMENT, AGENCY COST AND CORPORATE VALUE (SUATU PENGUJIAN MODEL STRUKTURAL)

2017 ◽  
Vol 14 (1) ◽  
pp. 39
Author(s):  
Isti Fadah
Keyword(s):  
Structural Equation Model ◽  
Cash Flow ◽  
Ownership Structure ◽  
Structural Equation ◽  
Agency Cost ◽  
Equation Model ◽  
Free Cash Flow ◽  
Corporate Value ◽  
Dividend Payment ◽  
Cash Flow Risk

The  agency problem come because of separation between ownership and management on large corporate, there is a conflict between shareholder as an owner and manager as an agent. Manager focus on high growth of corporate (low dividend) but the owner prefer high dividend. The aims of the research are (1)  to analysis the effect of free cash flow, risk and ownership structure to dividend payment ,(2) to analysis the effect of free cash flow, risk and ownership structure to  agency cost. (3) to analysis the effect of dividend payment to corporate value, and (4) to analysis the effect of and agency cost  to corporate value The technique sampling is purposive sampling. Secondary data is used in this research. It is from financial report like balance sheet, financial statement and cash flow report. It is gotten from Indonesian Stock Exchange. The research period is 2000 up to 2006. It uses pooled data ( joint of time series data and cross section data) so the analysis units are 271 (n=271).  To Analysis data  is used descriptive  analysis and also statistical analysis that’s name  structural equation model (SEM). It uses structural equation model (SEM) because the model has a ladder causality relationship and several variable like ownership structure, agency cost, risk , dividend payment and corporate value are latent variables.  The results show that (1)  risk has a positive significant effect to the agency cost, It means that agency cost can reduce the risk especially high risk investment that manger can do.  (2) Dividend payment  has a positive significant effect to the corporate value, It supports the-birds-in-the-hand theory and (3) risk has a positive significant effect to the corporate value. It means that investor always care about risk of corporate where they will invest.

scholarly journals OWNERSHIP STRUCTURE, DIVIDEND PAYMENT, AGENCY COST AND CORPORATE VALUE (SUATU PENGUJIAN MODEL STRUKTURAL)

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Isti Fadah
Keyword(s):  
Structural Equation Model ◽  
Cash Flow ◽  
Ownership Structure ◽  
Structural Equation ◽  
Agency Cost ◽  
Equation Model ◽  
Free Cash Flow ◽  
Corporate Value ◽  
Dividend Payment ◽  
Cash Flow Risk

The  agency problem come because of separation between ownership and management on large corporate, there is a conflict between shareholder as an owner and manager as an agent. Manager focus on high growth of corporate (low dividend) but the owner prefer high dividend. The aims of the research are (1)  to analysis the effect of free cash flow, risk and ownership structure to dividend payment ,(2) to analysis the effect of free cash flow, risk and ownership structure to  agency cost. (3) to analysis the effect of dividend payment to corporate value, and (4) to analysis the effect of and agency cost  to corporate value The technique sampling is purposive sampling. Secondary data is used in this research. It is from financial report like balance sheet, financial statement and cash flow report. It is gotten from Indonesian Stock Exchange. The research period is 2000 up to 2006. It uses pooled data ( joint of time series data and cross section data) so the analysis units are 271 (n=271).  To Analysis data  is used descriptive  analysis and also statistical analysis that’s name  structural equation model (SEM). It uses structural equation model (SEM) because the model has a ladder causality relationship and several variable like ownership structure, agency cost, risk , dividend payment and corporate value are latent variables.  The results show that (1)  risk has a positive significant effect to the agency cost, It means that agency cost can reduce the risk especially high risk investment that manger can do.  (2) Dividend payment  has a positive significant effect to the corporate value, It supports the-birds-in-the-hand theory and (3) risk has a positive significant effect to the corporate value. It means that investor always care about risk of corporate where they will invest.

scholarly journals Free cash flow, ownership structure, and capital structure: Impact on agency cost

2020 ◽  
Vol 2 (2) ◽  
pp. 63-71
Author(s):  
Yoga Khomaini Aditya ◽  
Husnah Nur Laela Ermaya ◽  
Ratna Hindria Dyah Pita Sari
Keyword(s):  
Capital Structure ◽  
Cash Flow ◽  
Ownership Structure ◽  
Agency Cost ◽  
Free Cash Flow

scholarly journals Analysing the Impacts of Free Cash Flow, Agency Cost and Firm Performance in Public Listed Companies in Malaysia

2021 ◽  
Vol 5 (1) ◽  
pp. 211-218
Author(s):  
Noraina Mazuin Sapuan ◽  
Norwazli Abdul Wahab ◽  
Muhammad Ashraf Fauzi ◽  
Aktom Omonov
Keyword(s):  
Firm Performance ◽  
Cash Flow ◽  
Negative Impact ◽  
Positive Impact ◽  
Listed Companies ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Asset Turnover ◽  
Free Cash Flow Hypothesis ◽  
The Relationship

This study intended to examine the relationship between free cash flow and agency costs towards firm performance based on the data from 350 public listed companies in Malaysia. The data was collected from year 2005 to 2015. There is a need to re-examine the free cash flow hypothesis and the agency theory based on Malaysian data as the results from previous studies shown a mix results.The findings shown free cash flow is significantly giving positive impact on firm performance. This result is contradict to free cash flow hypothesis, but it can occur due to, when the availability of investments opportunities that can be generated when firm more free cash flow that later able to increase firm performance. Meanwhile, total asset turnover has a positive impact on return on asset. However, the operating expenses ratio demonstrates that the operating expenses ratio has a negative impact on return on asset. The mix findings of agency cost are supported by previous studies.

scholarly journals Pengaruh Keputusan Pendanaan, Keputusan Investasi, Kebijakan Dividen, Dan Arus Kas Bebas Terhadap Nilai Perusahaan

2020 ◽  
Vol 8 (3) ◽  
pp. 263-276
Author(s):  
Muhammad Fadly Bahrun ◽  
Tifah Tifah ◽  
Amrie Firmansyah
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Investment Decisions ◽  
Total Sample ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Dividend Policies ◽  
Negative Effect

This study examines the effect of funding decisions, investment decisions, dividend policies, and free cash flow on firm value. The samples used in this study are consumer goods industry companies listed on the Indonesia Stock Exchange (IDX) during 2016-2019. Based on purposive sampling, the selected sample is 34 companies, so that the total sample is 136 observations. Hypothesis testing is carried out using multiple linear regression analysis of panel data. The test results show that funding decisions positively affect firm value, while investment decisions do not affect firm value. This study also shows that dividend policy and free cash flow have a negative effect on firm value.

scholarly journals The Research on the Measurement of Inefficiency Investment Degree of China's GEM Listed Companies

2016 ◽  
Vol 2 (1) ◽  
pp. 130
Author(s):  
Huina Tan
Keyword(s):  
Information Asymmetry ◽  
Cash Flow ◽  
Capital Market ◽  
Net Present Value ◽  
Investment Decisions ◽  
Listed Companies ◽  
Free Cash Flow ◽  
Principal Agent ◽  
Present Value ◽  
Senior Managers

October 30, 2009, the GEM officially launched, which was an important step to improve China's capital market system. For the listed companies, investment efficiency is one of the three major investment decisions. Due to the short period of study, the research area is less related to the GEM listed companies.Theoretically, in the perfect market described by Modigliani and Miller, investment decisions are totally determined by investment opportunities, regardless of the impact of other factors. But in the real world of imperfections, agent problems and information asymmetry can lead to inefficient investment. From the point of view of the Principal-agent Theory and the Free Cash Flow hypothesis, the principal-agent conflict between the shareholders and the senior managers leads to the fact that the senior managers maximize their own utility and put the free cash flow into the project whose net present value is not greater than zero. In the information asymmetry theory and financing constraints hypothesis, the information asymmetry between the company and the external investors will make it difficult for external investors to make an accurate valuation of the company. To reduce the loss of the risk, they tend to underestimate the value of the company, so the financing cost of company in the capital market have been raised, and when the internal cash is in the shortage, the senior managers do not want to choose external financing with high cost to meet the investment need, to give up investment in project whose the net present value is larger than zero, resulting in underinvestment.At the level of empirical analysis, this paper chose the financial data and market transaction data of the GEM listed companies from 2010 to 2015 to study. Based on the Expected Investment Model of Richardson (2006), this paper used the generalized difference moment method (GMM) to estimate the expected additional investment, with the amount of investment, resulting in overinvestment and underinvestment. The conclusion is that there are overinvestment behavior and underinvestment behavior of the GEM listed companies in the research period.This paper measured the level of inefficient investment of listed companies on the GEM, so that the micro-subject in the multi-level capital market can clearly define the direction of its own need. In addition, we also hope to provide empirical reference for the policy makers in the formulation of relevant policies to create a good market environment for listed companies.

scholarly journals Free Cash Flow, Growth Opportunities, And Dividends: Does Cross-Listing Of Shares Matter?

2014 ◽  
Vol 30 (2) ◽  
pp. 587 ◽  
Author(s):  
Zijian Cheng ◽  
Charles P. Cullinan ◽  
Junrui Zhang
Keyword(s):  
Cash Flow ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Free Cash Flow ◽  
Limited Evidence ◽  
Growth Opportunities ◽  
Dividend Policies ◽  
Cross Listing ◽  
Chinese Listed Companies ◽  
The Relationship

<p>Corporate dividend policy should strike a balance between paying cash to shareholders when there are excess resources and retaining sufficient resources in the company to fund worthwhile projects. Using excess resources to pay dividends can help to avoid overinvestment by the company in inappropriate projects and/or other potential misuse of funds by managers for their own benefit. However, companies also need to avoid paying too much in dividends to ensure that adequate resources are available within the company to fund projects that could increase shareholder wealth (i.e., to avoid underinvestment). Cross-listing of company shares can improve governance and oversight, which may make the dividend policies of cross-listed companies more likely to avoid both over and underinvestment.</p> <p>Using a sample of Chinese listed companies from 2003 to 2011, we find that cross-listed companies pay higher dividends than non-cross-listed companies when there are excess resources (measured by free cash flow), thereby reducing the potential for overinvestment/misuse of the resources by cross-listed companies. We also find that the dividends of cross-listed companies are lower than those of non-cross-listed companies when there are greater growth opportunities (measure by the market-to-book ratio), reflecting the reduced potential for underinvestment by cross-listed companies. We find more limited evidence that cross-listings may influence the relationship between dividend volatility and free cash flow and growth opportunities. Overall, our results suggest that companies cross-listing their shares have dividend policies that are more responsive than those of non-cross-listed companies to potential shareholder concerns about over and underinvestment.</p>

Investment and Cash Flow: New Evidence

2016 ◽  
Vol 51 (4) ◽  
pp. 1135-1164 ◽  
Author(s):  
Jonathan Lewellen ◽  
Katharina Lewellen
Keyword(s):  
Measurement Error ◽  
Cash Flow ◽  
Strong Evidence ◽  
Investment Decisions ◽  
Free Cash Flow ◽  
Financing Constraints ◽  
Flow Problems ◽  
Cash Flow Sensitivities ◽  
New Evidence

We study the investment–cash flow sensitivities of U.S. firms from 1971–2009. Our tests extend the literature in several key ways and provide strong evidence that cash flow explains investment beyond its correlation with q. A dollar of current- and prior-year cash flow is associated with $0.32 of additional investment for firms that are the least likely to be constrained and $0.63 of additional investment for firms that are the most likely to be constrained, even after correcting for measurement error in q. Our results suggest that financing constraints and free-cash-flow problems are important for investment decisions.

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