Corporate Tax Operating Cash flow and Sales Growth and their Impact on Dividend Payout Ratio in Oil and Gas Companies Listed in Karachi Stock Exchange (KSE)

Purpose: The purpose of this study is to comprehend the dynamics of dividend payout in Pakistan’s oil and gas sector. This study is an attempt to differentiate that what are factors force firms to distribute dividends instead of enhancing retained earnings. To draw the required results 13 listed oil and gas companies have been incorporated in this study and their 5 years’ data has been studied. Design/Methodology/Approach: This study is quantitative and secondary data has been used to extract results. The sources of the data are financial statements of the companies under study. Fixed and random effects of regression were used for data analysis. Findings: Based on this study, it can be concluded that the independent variables selected in this model have the power to explain the dependent variable by 45%, which means the results generated through this study can be given importance accordingly in the oil and gas sector of Pakistan. The explanatory variables were identified from the prior literature and then their impact on dividend payout ratio was studied. Implications/Originality/Value: It is evident from the results of the study that management can take necessary steps to formulate a mutually beneficial dividend policy that can enhance the strength and effectiveness of these explanatory variables to enforce a dividend policy that fulfils the expectations of both the investors and the company. The investors can also evaluate different factors that might have an impact on dividend distribution and they can also get the ability to determine dividend payout ratio which made the basis for decision making for investment in the given sector.

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Return on Equity as the Leading Indicator of Dividend Payout Ratio of Jakarta Islamic Index Stocks Listed on the Indonesia Stock Exchange

Dinasti International Journal of Management Science ◽

10.31933/dijms.v1i3.96 ◽

2020 ◽

Vol 1 (3) ◽

pp. 319-330

Author(s):

Endi Trimawan Budianto ◽

Eka Bertuah Eka Bertuah

Keyword(s):

Stock Price ◽

Dividend Policy ◽

Stock Exchange ◽

Cash Dividend ◽

Dividend Payout ◽

Return On Equity ◽

Company Stock ◽

Financial Condition ◽

Main Indicator ◽

Retained Earnings

Dividend policy is a critical and imperative decision because it involves the shareholders interest’s and has a significant impact to company's sustainability. Sartono (2010) states that dividend policy is a decision whether the profits obtained by the company will be distributed to shareholders as dividend or will be held in the form of retained earnings for future investment.Brigham and Gapenski (2006) state that investor’s main purpose when investing their fund is to gain income or return either as dividend yield or as capital gain. On the other side, the company who will share the dividend will be faced with various consideration: the urge to retain some profit for a more promising re-investment, the company funding, company liquidity, shareholder’s characteristic, specific target related to dividend payment ratio, and other factors related to dividend policy.Based on the definition mentioned above, it can be concluded that dividend policy is influenced by two conflicting interests; the shareholders interest with their dividend and the company interest to do re-investment by retaining the profit. Therefore, dividends paid will depend on each company’s considerations.In general, the shareholders wish to have a relatively stable dividend share to minimize the uncertainty of expected investment result and to increase the shareholder’s trust toward the company so that the stock value will rise. The company dividend policy can be reflected by the Dividend Payout Ratio (DPR), which is the profit percentage shared in the form of cash dividend. It means that the size of the DPR, either big or small, will affect the shareholder’s decision and to the contrary it will also affect the company financial condition. Improper decisions will potentially envisage company facing funding difficulties in the future.According to Brigham and Gapenski (2006), the optimum dividend policy is the dividend policy which creating balance between the current dividend and its growth in the future so the company stock price can be maximized.Lintner (1956) argue that the company ability to gain profit is the main indicator of the company ability to pay dividend. So, the profitability is the most determining factor toward dividend. But some other research mention that the companies tend to choose new investment instead of paying high dividend if their condition are great, well-developed and have high profitability.The rapid growth of Islamic Finance become the first-rate consideration of choosing Jakarta Islamic Index stocks as the object research in which this research aimed to improve investor’s understanding related to dividend policy of sharia stocks member of Jakarta Islamic Index.

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The Effect of Earnings Management on Dividend Policy in Pakistan

Sains Humanika ◽

10.11113/sh.v9n1-3.1131 ◽

2017 ◽

Vol 9 (1-3) ◽

Author(s):

Faiza Saleem ◽

Mohd Norfian Alifiah

Keyword(s):

Earnings Management ◽

Dividend Policy ◽

Oil And Gas ◽

Stock Exchange ◽

Annual Data ◽

Cross Sectional ◽

Return On Equity ◽

Dividend Payments ◽

Oil And Gas Companies ◽

The Impact

The aim of this study was to find out the impact of earnings management on dividend policy of oil and gas companies listed at the Karachi stock exchange. The study uses annual data of oil and gas companies for the period from 2008 to 2015. The dependent and independent variables are dividend policy and earnings management and the three control variables are leverage, return on equity and firm size. Modified cross sectional Jones model (1995) was used for calculating discretionary accruals which has been used as proxy for earnings management whereas measurement of dividend policy has been proxy by dividend payout. The findings from regression analysis indicate that earnings management has insignificant relationship with dividend policy of selected firms in Pakistan. Financial crisis in the world and economic decline period are the main reasons of this relationship. In the decline period the firms try to increase manipulation in earnings as a result the company starts reducing dividend payments. It is concluded that there are some other factors that may influence the pattern of dividend payment in the firms.

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Kebijakan Pembagian Dividen Perusahaan BUMN Indonesia Periode 2011-2016

Jurnal Ekonomi Akuntansi dan Manajemen ◽

10.19184/jeam.v17i1.18061 ◽

2018 ◽

Vol 17 (1) ◽

pp. 65

Author(s):

Siti Nurainul Jannah

Keyword(s):

Dividend Policy ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Secondary Data ◽

Multiple Linear Regression Analysis ◽

Payout Policy ◽

Company Size ◽

Dividend Payout ◽

Independent Variables ◽

Asset Growth

The purpose of this study is to analyze the factors that influence the dividend payout policy on BUMN companies listed in Indonesia Stock Exchange period 2011-2016. The independent variables used in this research are profitability, liquidity, asset growth, and company size. The method used is the method of quantitative research and the object of research is a state-owned company listed on the Indonesia Stock Exchange. The data used in this study was secondary data in the form of financial statements obtained by data collection techniques using documentation method. The sample used in this research is twelve companies using purposive sampling method. The technique of data analysis using was multiple linear regression analysis using SPSS test tool. The results showed that all independent variables together positive effect on dividend policy. While the t-test results show that only Profitability variables that have a positive and significant influence toward the dividend payout policy. The independent variables liquidity, asset growth, and company size have a positive and insignificant effect on dividend policy. The dividend payout policy is one of the main concerns of the stakeholders. However, this study uses only four independent variables to analyze the factors that influence the dependent variable. The magnitude of influence of all independent variables in this study only 33% and the rest much influenced by other variables outside in this study. Keywords: dividend payout policy, profitability, liquidity, asset growth, company size

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Return on Asset dan Investment Opportunity Set dalam Memprediksi Dividend Payout Ratio Perusahaan Manufaktur Sektor Consumer Goods

Jurnal Manajemen Strategi dan Aplikasi Bisnis ◽

10.36407/jmsab.v4i1.264 ◽

2021 ◽

Vol 4 (1) ◽

pp. 13-22

Author(s):

Moch Fathony

Keyword(s):

Consumer Goods ◽

Stock Exchange ◽

Secondary Data ◽

Return On Assets ◽

Dividend Payout ◽

Investment Opportunity Set ◽

Investment Opportunities ◽

Dividend Distribution ◽

High Investment ◽

A Company

Among factors that may be instrumental in affecting the dividend payout decision, this study aims to determine the effect of return on assets (ROA) and investment opportunities on dividend distribution in a company. Using secondary data from 10 Consumer Goods companies listed on the Stock Exchange in the period 2015 - 2019, the data were analyzed using panel regression using EVIEWS. This study found that ROA and investment opportunities can predict the Dividend Payout Ratio in the Consumer Goods Industry. The results suggest that the more profitable a company is, the more likely it is to pay high dividends. Also, high investment opportunities are good position increases a firm's ability to pay dividends.

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Impact of ownership structure on dividend policy: Case study of the listed oil and gas companies in Vietnam

International Journal of Social Science and Economics Invention ◽

10.23958/ijssei/vol06-i08/225 ◽

2020 ◽

Vol 6 (08) ◽

Author(s):

Hoang duc LE ◽

Nguyen Tuan Anh ◽

Nguyen Que Phuong ◽

Ta Thu Phuong

Keyword(s):

Ownership Structure ◽

Dividend Policy ◽

Oil And Gas ◽

Stock Exchange ◽

Institutional Ownership ◽

State Ownership ◽

Financial Policies ◽

Corporate Capital ◽

Oil And Gas Companies

The study examines the effect of ownership structure on dividend policy in oil and gas companies listed on the Hanoi Stock Exchange and Ho Chi Minh Stock Exchange. Using panel data from 21 oil and gas companies from 2010 to 2015, we find that dividend payout is negatively related to state ownership and institutional ownership. Our results show that state and institutions have unfavorable ties to cash dividends, indicating signs of corporate capital being expropriated by large shareholders. Moreover, we do not find a significant relation between foreign ownership and dividends. Overall, our findings suggest that oil and gas companies need adjustments in their ownership structure to reduce the concentration of state and institutional ownership to improve the effectiveness of business and financial policies.

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PENGARUH TIMBAL-BALIK ANTARA PEMBAYARAN DIVIDEN DAN PERTUMBUHAN MODAL SENDIRI PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

Jurnal Riset Manajemen Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Program Magister Manajemen ◽

10.32477/jrm.v4i1.61 ◽

2019 ◽

Vol 4 (1) ◽

pp. 23-35

Author(s):

Sofiati Sofiati

Keyword(s):

Goodness Of Fit ◽

Dividend Policy ◽

Mutual Influence ◽

Stock Exchange ◽

Agency Cost ◽

Test Results ◽

Statistical Measure ◽

Dividend Payout ◽

Capital Growth ◽

Retained Earnings

This study extends previous research on dividend policy and funding decisions. Previous studies have focused on dividend policy or funding decisions alone,to determine the factors that influences.This study aims to determine the mutual influence between dividend payout and capital growth. The authors would like to exame that there are similarities between the factors that affect the distribution of dividends and capital growth include profitability,agency cost,and retained earnings. In this research,the sample comprises of 72 active stocks listed and traded in Indonesia Stock Exchange during the periode of 2011-2015. The test results demonstrate the usefulness of the model testing using indicators overall goodness of fit to meet the criteria recomended level of fitness. By using the non-statistical measure such absolute goodness of fit and parsimony goodness of fit value exceeds recomended levels, it has indicated a good fit between the data with the model proposed research.

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Pengaruh Likuiditas, Profitabilitas, Leverage, dan Market Ratio terhadap Dividend Payout Ratio pada Perusahaan Manufaktur

Ekuilibrium Jurnal Ilmiah Bidang Ilmu Ekonomi ◽

10.24269/ekuilibrium.v12i1.420 ◽

2017 ◽

Vol 12 (1) ◽

pp. 17

Author(s):

Erna Puspita

Keyword(s):

Quantitative Research ◽

Dividend Policy ◽

Secondary Data ◽

Cash Dividend ◽

Financial Policies ◽

Dividend Payout ◽

Return On Equity ◽

Independent Variables ◽

Equity Ratio ◽

Retained Earnings

Dividend policy is concerned with financial policies regarding what amount cash dividend paid to shareholders and re-invested as retained earnings. The recent research aimed to test empirically various factors is considered to affect dividend policy. The independent variables in his research included Current Ratio (CR), Return on Equity (ROE), Debt to Equity Ratio (DER), and Earning Per Share (EPS). Meanwhile, the dependent variable was Dividend Payout Ratio (DPR). Quantitative research was used as the research design and the data was secondary data. Furthermore, purposive sampling was selected to get the sample. The result was 14 companies that pay dividend continuously during this research conducted on 2012 - 2014 were selected as the sample of this research. Multiple linier regression was used to analyze the data. The results showed that ROE and EPS has a contribution to the DPR, and then CR and DER has no contribution to the DPR.

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Development of Optimum Portfolio for Investment in Oil & Gas Sector (Investor’s View)

Journal of Global Economy ◽

10.1956/jge.v15i2.586 ◽

2019 ◽

Vol 15 (2) ◽

pp. 110-130

Author(s):

Sumeet Gupta ◽

Sourav Basak

Keyword(s):

Renewable Energy ◽

Crude Oil ◽

Oil And Gas ◽

Solar Power ◽

Stock Exchange ◽

Risk And Return ◽

Markowitz Model ◽

The World ◽

Oil And Gas Companies ◽

Oil And Gas Sector

With establishment of International Solar Alliance in New Delhi and due to the push given to renewable energy by the current government India has opened new dimension for innovation, investment and industry. This government has made a significant effort to push India’s renewable energy ambition. Due to this push India is now the 4th largest wind power producer in the world only behind of China, USA & Germany. India has made record addition to the solar power capacity in last 5 years. Although the recently concluded Financial Year (FY19) has shown a dip in installation of solar power with only 6500MW installed in the year. With this trend in the country the researchers are focusing on the scenario of renewable energy in India. So, the papers which are recently made available in the public domain are concerned with the current scenario. The surge in renewable energy is a good sign for the nation as renewable is the future. Though the rising demand of the fastest growing economy of the world can’t be satisfied with this growth in renewable energy. In simply words, the growth of the renewable energy is not enough to sustain the growth of the Indian economy. This statement is supported by the growing dependence of India on imported crude oil. Dependence of imported crude oil has gone up to 83.7% in Financial Year 19 from 82% in FY18. Hence, it can be said that the oil and gas sector is not getting the required focus. Development of an optimum portfolio to minimize risk and maximize return is required before taking any investment decision. Portfolio optimization is required when you think of investing in oil and gas sector as its one of the most volatile sectors. This study is focused on developing an optimum portfolio for investment in oil and gas sector in India. Hence, 11 companies listed on Bombay Stock Exchange is selected for the study. Risk and return of all the 11 companies are calculated. The companies are ranked according to their risk. Weightage of investment is assigned to the top 5 companies (with lowest risk). The study has been conducted to construct an optimum portfolio of oil and gas companies using Markowitz Model. The study has been conducted on individual securities listed in Bombay Stock Exchange (BSE). The objectives of this study are: Risk and return analysis of individual securities of oil and gas companies in India listed with BSE. To identify the opportunities of investment in oil and gas companies and development of an optimum portfolio for investment in these companies. To construct optimal portfolio using Markowitz Model. To check whether Markowitz Model performs well in Oil and gas companies well in BSE or not.

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Pengaruh Timbal-Balik Antara Pembayaran Dividen Dan Pertumbuhan Modal Sendiri Perusahaan Manufaktur Di Bursa Efek Indonesia

Jurnal Riset Manajemen Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha Program Magister Manajemen ◽

10.32477/jrm.v4i1.187 ◽

2017 ◽

Vol 4 (1) ◽

pp. 23-35

Author(s):

Sofiati Sofiati

Keyword(s):

Goodness Of Fit ◽

Dividend Policy ◽

Mutual Influence ◽

Stock Exchange ◽

Agency Cost ◽

Test Results ◽

Statistical Measure ◽

Dividend Payout ◽

Capital Growth ◽

Retained Earnings

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Influence of dividend policy on sharia stock price volatility

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v9i7.921 ◽

2020 ◽

Vol 9 (7) ◽

pp. 84-92

Author(s):

Irton Irton

Keyword(s):

Stock Price ◽

Dividend Policy ◽

Stock Exchange ◽

Hypothesis Test ◽

Price Volatility ◽

Secondary Data ◽

Stock Index ◽

Dividend Yield ◽

Stock Price Volatility ◽

Dividend Payout

The main object of this research is to examine whether dividend policy in the form of dividend payout ratio and dividend yield influences the volatility of sharia stock price in the Indonesian Stock Exchange. This research uses the quantitative method by using the secondary data collected from the published Indonesian Stock Exchange. The sample in this research is 106 companies registered in the Indonesian Sharia Stock Index (ISSI) in 2016-2018. The dependent variable in this research is stock price volatility while the independent variables are dividend payout ratio, dividend yield, and data of earnings volatility, debt, and size that are collected and processed from the company financial report. Multiplied regression analysis is used for correlation test and hypothesis test using the SPSS software program version 15.0. The result of the research shows a shred of evidence that dividend per share and dividend payout ratio have no influence on the stock price volatility. The result of research can help the investors to select the sharia shares, and for companies, this research is useful to determine the dividend policy

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