Financial Constraints and the Sustainability of Dividend Payout Policy

This article investigates the relation between dividend payout policy and financial constraints, focusing on the Italian SMEs between 2015 and 2019 and adopting credit ratings as a measure of access to external financial resources. According to our findings, there is a positive relation between firm solvency and the payment of dividends, suggesting that, when companies’ financial constraints are higher, we can expect lower odds that they will pay out dividends. Nevertheless, there is also evidence that younger SMEs are interested in signaling their expected profitability to attract future investors and support access to the capital market.

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Growth of Capital Market in Nepal: Impact on Capitalization, GDP and NEPSE Index

Saptagandaki Journal ◽

10.3126/sj.v11i0.36898 ◽

2020 ◽

Vol 11 ◽

pp. 66-83

Author(s):

Dhan Raj Chalise

Keyword(s):

Capital Market ◽

Significant Contribution ◽

Positive Impact ◽

Stock Exchange ◽

Secondary Data ◽

Secondary Market ◽

Financial Resources ◽

Descriptive Research ◽

The Impact ◽

The Capital Market

The capital market plays an importance role in an economy and provides the opportunity to the investor for the mobilization and channelization of funds. Nepalese capital market is in growing and improving phase. The objective of this study is to analyze the evaluation of the existing status of the capital market in term of its composition of types of the capital market and to examine the impact of capital mobilization in Gross Domestic Product (GDP) and to examine the contribution of capital market in financial resources and GDP. Besides, the study examines the share transaction in Nepal Stock Exchange (NEPSE) and its impact on NEPSE Index. The study period of 2000/01 to 2018/19 has been used for study purposes. Through the use of descriptive research design, the trends of capital market development track after 2000/01 to present status has been presented. Secondary data are analyzed through the use of regression and other descriptive statists to convert the information into data. The result indicates that the ordinary shares in the primary capital market and market capitalization in the secondary market has significant contribution for the capital market in Nepal. Also, the study reveals that there is a significant and positive impact of capital mobilization on GDP and the number of share transactions on the NEPSE Index in the Nepalese capital market. Hence there is a significant contribution of the capital market for financial resources mobilization and GDP of Nepal. The study reports for modernization and systematization of the capital market need more optimal efforts from concerned stakeholders.

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Pengaruh Profitabilitas, Dividend Payout Ratio dan Inflasi Terhadap Harga Saham

e-Journal Ekonomi Bisnis dan Akuntansi ◽

10.19184/ejeba.v8i1.21652 ◽

2021 ◽

Vol 8 (1) ◽

pp. 84

Author(s):

Herman Setiawan ◽

Victoria Victoria ◽

Karen Victoria ◽

Holfian Daulat Tambun Saribu ◽

Erika Erika

Keyword(s):

Data Analysis ◽

Linear Regression ◽

Capital Market ◽

Consumer Goods ◽

Stock Prices ◽

Stock Exchange ◽

Analysis Method ◽

Dividend Payout ◽

Share Prices ◽

The Capital Market

The presence of the capital market in Indonesia is marked by the number of investors who purchase shares of entities that are registered in the capital market. The purpose of this research is to examine and analyze the effect of profitability, dividend payout ratio and inflation on share prices in consumer goods entities listed on the Indonesia Stock Exchange in 2014-2018. This type of research is quantitative. The population of this study is 41 consumer goods companies listed on the Indonesia Stock Exchange for the period 2014- 2018, the sample of this study is 17 companies x 5 years = 85 samples. The data analysis method of this research is to use multiple linear regression with SPSS. The results of this study are Profitability has a significant and significant effect on stock prices, while Dividend Payout Ratio and inflation have no effect on Stock Prices, and simultaneously Profitability, Dividend Payout Ratio and inflation have a significant and significant effect on Share Prices in Consumer Goods Entities listed on the Indonesia Stock Exchange. 2014-2018.

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The impact of R&D intensity, financial constraints, and dividend payout policy on firm value

Finance Research Letters ◽

10.1016/j.frl.2020.101802 ◽

2020 ◽

pp. 101802

Author(s):

JooMan Kim ◽

Insun Yang ◽

Taeyong Yang ◽

Peter Koveos

Keyword(s):

Firm Value ◽

Financial Constraints ◽

Payout Policy ◽

Dividend Payout ◽

The Impact

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The effect of activity ratios, liquidity, and profitability on the dividend payout ratio

Indonesia Accounting Journal ◽

10.32400/iaj.30119 ◽

2021 ◽

Vol 3 (1) ◽

pp. 36

Author(s):

Muhammad Arsyad ◽

Sitti Hartati Haeruddin ◽

Muslim Muslim ◽

Muhammad Faisal A. R. Pelu

Keyword(s):

Capital Market ◽

Consumer Goods ◽

Dividend Policy ◽

Manufacturing Companies ◽

Dividend Payout ◽

Industry Sector ◽

Activity Ratios ◽

Consumer Goods Industry ◽

The Impact ◽

The Capital Market

Dividends are a significant factor in investors' investment interests, so that dividend policy is a critical factor for companies to retain their shareholders. On this purposes, the companies must improve financial performance, especially activity ratios, liquidity ratios, and profitability ratios in this condition. The consumer goods industry sector is one of the industries that play a significant role in the capital market as they have rapid business competition. Until May 2020, the performance condition of companies in the consumer goods industry was experiencing less than optimal conditions as the manufacturing sector weakened at 22.0% due to the weakening of Indonesia's manufacturing Purchasing Managers' Index (PMI). The condition indicates that the impact of a decrease in the company's liquidity performance is a decrease in demand for manufactured goods which gives results in a decrease in profitability performance, and a less than optimal turnover of company assets in the consumer goods industry sector. This study uses manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange from 2015 to 2019 as a sample. Multiple regression analysis results show that return on investment has a positive and significant effect on the dividend payout ratio. This result implies that the profitability ratio is a positive signal for investors in the capital market regarding the company's dividend policy.

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The Effect Of Family Firm On The Credit Rating: Evidence From Republic Of Korea

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v32i6.9809 ◽

2016 ◽

Vol 32 (6) ◽

pp. 1575 ◽

Cited By ~ 1

Author(s):

Soo-Joon Chae ◽

Kwang-Wook Oh

Keyword(s):

Corporate Governance ◽

Capital Market ◽

Family Firms ◽

Credit Rating ◽

Credit Ratings ◽

Governance Structure ◽

Credit Rating Agencies ◽

Corporate Values ◽

Rating Agencies ◽

The Capital Market

This study examined whether there were differences in the credit ratings of family firms, one type of business ownership and corporate governance in Korea. Credit rating agencies which evaluate a company's ability to pay back the debt play a key role in evaluating corporate values in the capital market. A variety of standards are applied to evaluate corporate credit ratings. The corporate governance structure is also under consideration. Credit rating agencies may give excellent credit ratings to family firms if they judge that family companies have efficient governance structures resulting in lower agency costs as companies which try to match minority shareholders' interests. On the other hand, they may give lower credit ratings to family firms if they judge that family firms have a negative impact on firm performance. In this context, this study planned to investigate how credit rating agencies constituting the mainstay in the evaluation of corporate values with analysts judged the roles of family firms which had been controversial in previous studies in the capital market, and present direct results.

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To pay or not to pay: what matters the most for dividend payments?

International Journal of Managerial Finance ◽

10.1108/ijmf-07-2017-0144 ◽

2018 ◽

Vol 14 (2) ◽

pp. 230-244 ◽

Cited By ~ 7

Author(s):

Ranajee Ranajee ◽

Rajesh Pathak ◽

Akanksha Saxena

Keyword(s):

Financial Constraints ◽

Negative Impact ◽

Payout Policy ◽

Contributing Factors ◽

Dividend Payment ◽

Dividend Payout ◽

Content Type ◽

Life Cycle Theory ◽

Dividend Payments ◽

Growth Prospects

Purpose The purpose of this paper is to test the stickiness of payout policy across times for Indian firms, by identifying the determinants of dividend payout (for amount of dividends as well as probability of dividends) and examine their predictive consistency through good and bad times, affiliation categories, amid controls for idiosyncratic characteristics. The authors also examine the scantly explored effects of financial constraints on firms’ dividend decisions. Design/methodology/approach The authors use various regression models, i.e. panel, Tobit and logit models; and amid control for firm-specific characteristics throughout the analysis. Findings The authors observe payout levels on average increasing with time for Indian firms. Further, group firms pay higher dividends compared to standalone firms. Firms’ leverage, profitability, non-promoters holdings, growth prospects and dividend event are apparently the important determinants of payout ratio and are mostly, but not always, consistent through times and firms’ categories, for both the amount as well as the likelihood of dividend payments. Financial constraints have an overall negative impact on dividends with significantly varying magnitude across periods of stability, crisis and recovery. Firms’ age and size are positive and significant factors for dividends level decisions in Indian firms, which is consistent with the life-cycle theory. However, inconsistent size and age effect is observed in determining the likelihood of dividend payment. Research limitations/implications This study adds to the growing literature on the changing trends and contributing factors of firms’ dividend payout policy. Originality/value This study provides evidence on predictive consistency of payout policy of firms and its determination with the change in the external economic condition.

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Institutional Investors on the Securities Market

Voprosy Ekonomiki ◽

10.32609/0042-8736-2003-8-95-101 ◽

2003 ◽

pp. 95-101

Author(s):

O. Khmyz

Keyword(s):

Financial Crisis ◽

Capital Market ◽

Hedge Funds ◽

Institutional Investors ◽

Securities Market ◽

Main Role ◽

Investment Funds ◽

Investment Process ◽

The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

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