scholarly journals R & D Intensity and Dividend Policy: Evidence from South Korea’s Biotech Firms

2019 ◽  
Vol 11 (18) ◽  
pp. 4837 ◽  
Author(s):  
Lee ◽  
Lee
Keyword(s):  
Steady State ◽  
Firm Value ◽  
Dividend Policy ◽  
Payout Policy ◽  
Maturity Stage ◽  
Cash Holding ◽  
Corporate Value ◽  
Dividend Payout ◽  
Stock Dividends

In this paper, we examine the relation between a firm’s research and development (R & D) intensity and dividend payout policy with a focus on biotech firms in a sample of 18,253 firm-year observations in South Korea. We find that biotech firms’ R & D intensity is negatively related to dividend payout. Furthermore, for biotech firms, increased internal cash holding accomplished via a lower dividend policy is positively associated with long-term corporate value. In particular, this study reports that the relation between biotech firms’ cash holding and corporate firm value is significantly positive in firms with high stock dividends. Moreover, it shows that non-biotech firms in the maturity stage of the corporate lifecycle tend to distribute cash dividends, a practice that is relatively uncommon among biotech firms in an R & D steady state.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Payout Policy ◽  
Board Composition ◽  
Dividend Payout ◽  
Content Type ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

scholarly journals PROFITABLITY AND LIQUIDITY ON CORPORATE VALUE THROUGH DIVIDEND POLICY AS INTERVENING VARIABEL: EMPIRICAL STUDY ON ISLAMIC CAPITAL MARKET

2020 ◽  
pp. 249
Author(s):  
Sutrisno Sutrisno ◽  
Bagus Panuntun
Keyword(s):  
Regression Analysis ◽  
Capital Market ◽  
Firm Value ◽  
Sampling Method ◽  
Dividend Policy ◽  
Corporate Value ◽  
Return On Assets ◽  
Current Ratio ◽  
Observation Period

The purpose of this study is to examine the effect of profitability and liquidity on dividend policy and firm value. It also examines the role of dividend policy as an intervening variable between profitability and liquidity on firm value. Firm value is measured by Tobin's Q, dividend policy is measured by dividend payout ratio (DPR), profitability is measured by return on assets (ROA) and liquidity is measured by current ratio (CR). The population of this study is companies registered in List of Sharia Securities consisting of more than 300 companies. Samples were taken as many as 100 companies with a purposive sampling method. The observation period is 3 years (2016-2018). To test hypotheses using multiple regression analysis. The result shows that profitability is significant and positively effect on dividend policy, while liquidity does not affect on dividend policy. Profitability and dividend policy have a positive and significant effect on firm value, while liquidity has no effect on firm value. Another result of dividend policy is able to be as an intervening effect on profitability of firm value but not as an intervening liquidity relationship to firm value.

Kebijakan Pembagian Dividen Perusahaan BUMN Indonesia Periode 2011-2016

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

scholarly journals The Role Of Cash Holdings, Working Capital, Dividend Payout On Capital Investment

2018 ◽  
Vol 34 (3) ◽  
pp. 419-426
Author(s):  
Andrew Chan
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Capital Investment ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Payout Policy ◽  
Working Capital ◽  
Dividend Payout ◽  
Investment Spending ◽  
The Relationship

An objective of this paper is to investigate the relationship between firms' capital investment spending, cash holdings, and working capital in an expanding Asian financial market.  A sample of publicly traded manufacturing firms on the Hong Kong Stock Exchange was examined during the period 2005-2014. The empirical results provide strong and statistically significant evidence on the effect of cash flow on investment.  Working capital also exhibits significant relationship with capital investment spending, though the relationship is not as strong and significant as that with cash flow and cash holding.  Firms with low dividend payout policy over the sample period depended heavily on cash flow, changes in cash flow and, to a lesser extent, on working capital to finance spending on fixed plant and equipment.  These results suggest that the effect of capital investment spending financed by internal cash flow on firm value may depend on a firm's dividend payout.

scholarly journals The Effect of Dividend Policy on Share Price: A Conceptual Review

2018 ◽  
Vol 7 (4.28) ◽  
pp. 34
Author(s):  
Hamad Raza ◽  
Suresh Ramakrishnan ◽  
Syed Muhammad Ahmad Hassan Gillani ◽  
Humara Ahmad
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Empirical Studies ◽  
Share Price ◽  
Review Of Literature ◽  
Dividend Payout ◽  
Academic Literature ◽  
Corporate World ◽  
Previous Decade ◽  
Day By Day

In modern corporate world, dividend policy is one of the most debatable issues in corporate finance. The academic literature related to effect of dividend policy on share price has grown rapidly over the previous decade, due to its puzzling phenomena. The present study intends to conduct a non-systematic review of literature on the empirical and theoretical studies on corporate dividend policy in order to understand its nature and dimensions. In this concern, an extensive review of existing literature has been performed and it is found that there are three different approaches or schools of thought. First school of thought is that a rise in dividend payout will increase the firm value (share price). Second, thinks that a rise in dividend payout will reduce the firm value (share price) and third supports Miller and Modigliani (1) argument that firm value or share price are not affected by dividend policy. Till to date no consensus has appeared and results are inconclusive. This article also attempts to cover key empirical studies on dividend policy across countries, which shows that the phenomena of dividend policy differ from one country to another. The continuing nature and wide array of discussion on dividend policy has formulated a massive volume of literature that increase day by day. Therefore, it not feasible to do a full-fledge review of all debates.

scholarly journals Does ESG Affect the Stability of Dividend Policies in Europe?

2020 ◽  
Vol 12 (21) ◽  
pp. 8804
Author(s):  
Pedro Verga Matos ◽  
Victor Barros ◽  
Joaquim Miranda Sarmento
Keyword(s):  
Dividend Policy ◽  
Profit Sharing ◽  
Significant Issue ◽  
Dividend Payout ◽  
Dividend Policies ◽  
Thomson Reuters ◽  
The World ◽  
The Stability ◽  
The Relationship

Sustainability has become a significant issue for firms and investors throughout the world, although it cannot be attained if policies impact the stability of firms’ dividend policies. In this paper, we use data from the Stoxx Euro 600 firms from 2000 to 2019 and the ESG (environmental, social and governance) scores from Thomson Reuters to assess the relationship between ESG responsibility performances and the firm’s dividend policy. The results indicate that more sustainable firms exhibit a more stable dividend payout. This result is also valid when the ESG pillars are analysed, specifically, the environmental and governance pillars. The findings further suggest that higher ESG scores reveal better long-term alignment with shareholders and other stakeholders due to more proportionally stable profit sharing.

scholarly journals Pengaruh Leverage Dan Good Coorporate Governance Terhadap Nilai Perusahaan Melalui Kebijakan Dividen

2020 ◽  
Vol 3 (2) ◽  
pp. 158
Author(s):  
Wati Rosmawati
Keyword(s):  
Corporate Governance ◽  
Direct Effect ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Financial Statement ◽  
Corporate Value ◽  
Good Corporate Governance ◽  
Significant Direct Effect

Purpose of this study is to analyze the influence of leverage and good corporate governance on firm value using dividend policy as an intervening variable. The sample of this research is BUMN listed on the Indonesia Stock Exchange with the 2014-2018 financial statement period. From the results of the study found that there is no direct effect of leverage on dividend policy. There is a significant direct effect on leverage on firm value. Good corporate governance directly has no significant effect on corporate value. Dividend policy directly does not have a significant effect on firm value. Leverage through dividend policy has no significant effect on firm value. Good corporate governance through dividend policy has a significant effect on firm value.

scholarly journals Pengaruh Market Value, Leverage dan Assets Management Terhadap Firm Value dengan Kebijakan Dividen Sebagai Variabel Moderasi

2020 ◽  
Vol 4 (5) ◽  
pp. 253
Author(s):  
Fanny Fanny ◽  
Indra Widjaja
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Independent Variables ◽  
Market Values ◽  
Test Result ◽  
Collection Methods

An established company has two goals, short term and long term goals. In the long term goals, the company will try to maximize the value of the company. Maximizing firm value is essential for company because it means increasing the wealth of shareholders as well. This study examines the effect of market values, leverages, and management asset into the firm’s  value with dividend policy as a moderating variable. For this purpose, the firms in the sub-sector chemical listed in Indonesia Stock Exchange during the period of 2009 - 2018 are examined. The sampling method was done by using purposive sampling. Secondary data collection methods were taken from IDX published financial statements. This research used multiple regression analysis with fixed effect method to test their hypothesis using Eviews 9.0. The results show that earning per share has a negative significant effect to firm value in which is measured by price to book the value, while leverage and management assets have a positive significant impact to the firm’ value. F-test result shows that all independent variables in this research simultaneously has a significant effect to firm’s value with dividend policy as a moderating variable in sub sector chemical estate listed in Indonesia Stock Exchange. In the test of Adjusted R2, the analysis results showed that 43.41% firm’s value was influenced by the independent variables of this research while the remaining is influenced by other factors which are not studied.

scholarly journals PENGARUH UKURAN PERUSAHAAN, PROFITABILITAS, KEBIJAKAN DEVIDEN, DAN KEPUTUSAN INVESTASI TERHADAP NILAI PERUSAHAAN (Studi Penggunaan Indeks LQ-45 Periode 2010 -2014)

2016 ◽  
Vol 1 (2) ◽  
pp. 156
Author(s):  
Henri Dwi Wahyudi ◽  
Chuzaimah Chuzaimah ◽  
Dani Sugiarti
Keyword(s):  
Firm Size ◽  
Firm Value ◽  
Sampling Method ◽  
Stock Exchange ◽  
Corporate Value ◽  
Dividend Payout ◽  
Return On Equity ◽  
Company Value ◽  
Regression Test ◽  
A Company

A company aimed and tried to maximize shareholder prosperity. Shareholder prosperity was reflected by company value. This study aimed to review the effect of firm size, Dividend Payout Ratio, Return on Equity, and Price Earning Ratio on firm value among ILQ45 companies registered in The Indonesia Stock Exchange. Populations of this study were firms registered in The Indonesia Stock Exchange of the year 2010 – 2014. The research used purposive sampling method based on determined criteria. There were 22 firms with totally 110 data. After the outliers process, there were 18 with totally 90 data samples. Based on these data, this study carried a classic assumption analysis using multiple regression data with SPSS16. The regression test resulted: (1) Firm size positively influenced and not significant to firm value; (2) Dividend Payout Ratio positively influenced and not significant to firm value; (3) Return on Equity positively influenced and not significant to firm value; (4) Price Earning Ratio positively influenced and not significant to corporate value.

scholarly journals Determinants of dividend payout policy: An empirical study of banking sector of Pakistan

2016 ◽  
Vol 10 (4-5) ◽  
pp. 101-106 ◽  
Author(s):  
Ishtiaq Ahmad ◽  
Muhammad Fahid Muqaddas
Keyword(s):  
Dividend Policy ◽  
Banking Sector ◽  
Stock Exchange ◽  
Payout Policy ◽  
Panel Regression ◽  
Financial Efficiency ◽  
Safety Risk ◽  
Dividend Payout ◽  
Jel Code ◽  
Relationship Of

One good way to communicate financial performance of a bank to its shareholders is the payment of dividend. The present study is attempted to explore the influence of financial efficiency, safety, risk and profitability on dividend policy using panel data of 10 commercial banks listed at Pakistan Stock Exchange (PSX) for a period of 9 years between 2006 to 2014. The panel regression technique is used to analyze the data. The analysis shows a positive relationship of dividend payout ratio with safety and profitability in banking sector of Pakistan. The study identifies a negative association of dividend payout measure with financial efficiency and risk. The results show the statistically significant association of safety, risk and profitability with dividend payout ratio. Based on these findings it is concluded that safety, risk and profitability measures are relatively strong measures for defining dividend policy. The results are strongly indicating that safer the banks, the greater payout ratio the bank has. Moreover; banks with higher profitability and lower non-performing loans (NPLs) are believed to pay more dividends. JEL code: G21, G23, G35

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