scholarly journals IMPACT OF DIVIDEND PAYOUT ON THE FIRM VALUE: A STUDY OF FIRMS LISTED ON NATIONAL STOCK EXCHANGE

2020 ◽  
pp. 14-19
Author(s):  
Dr.Chinnaiah.P.M
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Market Risk ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Wealth Maximization ◽  
Size Growth ◽  
Prime Objective ◽  
The Impact ◽  
Pe Ratio

Maximization of firm value or shareholders wealth maximization is the prime objective of a firm. As the dividend payout decision is one of the important decisions, its impact on the firm value has been widely studied and researched topic in the area of corporate finance. In the present study the impact of dividend payout on the value of the firm has been examined on the sample of Nifty-100 index firms. Along with the Dividend Payout(DPR), Current year’s profit(CPR), Size(SIZE), Leverage(LEV), Growth Opportunities(GWOP), Market risk(Beta), Price-Earnings(PE) ratio and Age(AGE) have been considered in the model as independent variables. The result shows that, dividend payout positively related but not significantly influence on the value of the firm. Whereas, The Current year’s profit (CPR), Size (SIZE), Growth Opportunities (GWOP) and Price-Earnings (PE) are the variables significantly influence on the value of the firm. KEYWORDS: Dividend payout, value of the firm, shareholders, National Stock Exchange, market risk.

scholarly journals The impact of capital structure and certain firm specific variables on the value of the firm: Empirical evidence from Kuwait

2015 ◽  
Vol 13 (1) ◽  
pp. 1191-1200
Author(s):  
Ahmad Mohammad Obeid Gharaibeh ◽  
Adel Mohammed Sarea
Keyword(s):  
Capital Structure ◽  
Stock Exchange ◽  
Influential Factor ◽  
Annual Reports ◽  
Growth Opportunities ◽  
Data Set ◽  
Explanatory Variables ◽  
Size Growth ◽  
One Year ◽  
The Impact

The main objective of this study is to empirically examine the impact of leverage and certain firm-characteristics that are believed to have significant effects on the decision to use debt and on the value of the firm. The sample is composed of 48 companies listed in the Kuwait Stock Exchange (KSE) representing four different sectors. The study uses actual and historical panel data set obtained from the published annual reports of individual firms in addition to the publications of KSE. The study was accomplished using 8 years of data with a total of 239 observations representing the study period 2006-2013. The study uses descriptive statistics, correlation, and multiple-regression analyses to examine the impact of explanatory variables on the value of the firm. The study findings lead to the conclusion that capital structure (leveraging) is the most influential factor on firm’s value. Business risk, previous year’s value (one-year lagged ROA), dividends payout ratio, size, growth opportunities and liquidity of the firm are found to have significant influence on the firm’s value in Model 1 (where ROA is used as a proxy for the value of the firm). In model 2 (i.e., where ROE is used as a proxy of the firm’s value), the findings reveal that capital structure (leveraging); firm’s size, growth opportunities and liquidity of the firm are significant influential of the firm’s value. The study is valuable to academicians, finance managers, policy makers and other stakeholders as it fills the gap of literature by providing up-to-date evidence of the impact of capital structure and other firm specific variables on the value of the firm in Kuwait.

Pengaruh Free Cash Flow, Operating Cash Flow, dan Dividend Payout Ratio Terhadap Nilai Perusahaan

2018 ◽  
Vol 10 (1) ◽  
pp. 52-65
Author(s):  
Suwaldiman Suwaldiman
Keyword(s):  
Cash Flow ◽  
Firm Value ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Dividend Payout ◽  
Operating Cash Flow ◽  
The Impact

            This research examines the impact of free cash flow, operating cash flow, and dividend payout ratio on the firm value which is represented by stock return.             This research employees a multiple linear regression analysis to test the hypothesis. Samples used in this research are 159 manufacturing companies registered in Indonesia Stock Exchange for the period of 2013, 2014, and 2015.             This research reveals that free cash flow and operating cash flow have no significant impact on the firm value. Those variables seem having no important contents in the point of view of investors. Therefore they do not response to the information. However, this research proves that dividend payout ratio have significant impact on the firm value. It can be concluded that dividend payout ratio is more important than those of free cash flow and operating cash flow. Investors will positively response to the dividend information and it will significantly increase the firm value.

scholarly journals Dividend Policy of Indonesian State-Owned Enterprises

Telaah Bisnis ◽  
2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Wahyuni Rusliyana Sari
Keyword(s):  
Firm Size ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Business Risk ◽  
Financial Leverage ◽  
Growth Opportunities ◽  
Global Crisis ◽  
Dividend Payout ◽  
The Impact

Abstract The purpose of this research is to identify the factors that influence the dividend policy. The model considered the impact of ownership structure, firm size, growth opportunities, financial leverage, profitability, business risk, age, previous year’s dividends, and global crisis 2008 on dividend payout ratio. Sample in this research is state-owned enterprises listed in Indonesian Stock Exchange between the years from 2004-2013. With using purposive sampling, the total of the sample in this research is 8 state-owned companies. The methodology of this research was multiple regression linier. The result of this research find that firm size, previous year’s divi­dends, and global crisis 2008 significant to dividend payout ratio. Ownership structure, growth opportunities, financial leverage, profitability, business risk, and age do not have significant to dividend payout ratio. This result indicates that the companies management has to consider firm size, previous year’s dividends, and global crisis 2008 in dividend payout ratio.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI HARGA SAHAM DENGAN NILAI PERUSAHAAN SEBAGAI VARIABEL INTERVENING

2018 ◽  
Vol 11 (1) ◽  
pp. 40 ◽  
Author(s):  
Danarji Nirmolo ◽  
Kesi Widjajanti
Keyword(s):  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Test Statistic ◽  
Financial Reports ◽  
Dividend Payout ◽  
Purposive Sampling ◽  
Analysis Technique ◽  
Equity Ratio ◽  
The Impact

<p>Tujuan penelitian ini adalah untuk menganalisis pengaruh dari variabel <em>debt to equity ratio</em> (DER), <em>dividend payout ratio</em> (DPR), <em>earning per share</em> (EPS) terhadap nilai perusahaan (PBV) dan pengaruh DER, DPR, EPS, dan PBV terhadap harga saham pada perusahaan yang tercatat dalam indeks LQ45 di Bursa Efek Indonesia periode 2014 -2017. Penelitian menggunakan metode <em>purposive sampling</em> untuk pengambilan sampel. Data diperoleh berdasarkan data laporan keuangan perusahaan dan laporan statistik tahunan yang berasal dari www.idx.co.id, diperoleh jumlah sampel sebanyak 30 perusahaan. Teknik analisis yang digunakan adalah analisis regresi data panel. Berdasarkan uji statistik F menunjukkan bahwa kedua model memenuhi kriteria fit karena memiliki nilai signifikansi yang kurang dari α 0,05. Sedangkan berdasarkan uji statistik t menunjukkan bahwa <em>debt to equity ratio</em> berpengaruh positif dan signifikan terhadap nilai perusahaan karena memiliki nilai signifikansi kurang dari α 0,05. Sedangkan variabel <em>dividend payout ratio</em> dan <em>earning per share</em> tidak berpengaruh signifikan terhadap nilai perusahaan. Variabel <em>debt to equity ratio</em> tidak berpengaruh signifikan terhadap harga saham, sedangkan <em>dividend payout ratio</em> berpengaruh negatif dan signifikan terhadap harga saham. <em>Earning per share</em> dan nilai perusahaan berpengaruh positif dan signifikan terhadap harga saham. </p><p> </p><p>The purpose of this study is to analyze the impact of the variables debt to equity ratio (DER), dividend payout ratio (DPR), and earning per share (EPS) toward firm value (PBV) and the influence of DER, DPR, EPS, and PBV toward price stock on  companies listed in the LQ45 index on the Indonesia Stock Exchange in the 2014 - 2017. Research using purposive sampling method for taking samples. Data obtained from company financial reports and yearly statistic reports of Indonesia Stock Exchange listed at IDX (www.idx.co.id), obtained 30 samples of firms. Analysis technique used is panel data regression analysis. Based on the test statistic F indicates that both of the model is fit because has a significance value less than 0,05 of α. Meanwhile, based on statistical t test showed that debt to equity ratio has positive and significant impact on firm value because it has a significance value less than 0,05 of α although dividend payout ratio and earning per share don’t have significant impact on firm value. Meanwhile, debt to equity ratio doesn’t have significant impact on stock price but dividend payout ratio has negative and significant impact on stock price. Earning per share and firm value have positive and significant impact on stock pric</p>

scholarly journals Impact of Dividend Payout Ratio on the Value of Firm: A Study of Companies Listed on the Nigerian Stock Exchange

2019 ◽  
Vol 1 (1) ◽  
pp. 25
Author(s):  
Augustine Nwekemezie Odum ◽  
Chinwe Gloria Odum ◽  
Raymond Ifeanyi Omeziri ◽  
Chinedu Francis Egbunike
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Least Square ◽  
Dividend Payout ◽  
Leverage Ratio ◽  
Corporate Managers ◽  
Ordinary Least Square ◽  
Value Of Firm ◽  
Ordinary Least Square Regression ◽  
The Impact

The purpose of this study was to examine the impact of dividend payout ratio on the value of firm. The study also examined other factors that affect the value of firm while employing companies listed on the Nigerian stock exchange. The factors which were considered to affect the value of the firm in this study include profitability, leverage policy ratio, dividend policy ratio, cash holding and the size of the firm. The study employed Panel Ordinary Least Square Regression Techniques in analyzing the collated data. The sample in this study is drawn from breweries and beverages companies listed on the Nigerian stock exchange between the periods 2007-2016. The results showed that profitability ratio and leverage ratio positively and significantly impact on the value of the firm. This implies that only the variables of Firm Leverage, and Profit after Tax are significant factors that drives firm value in both breweries and beverages companies among listed companies in Nigeria. The study however recommends that corporate managers whose interest is to raise firm value should ensure the maximization of Profit after Tax, and focus on policies that will improve the leverage ratio of the firm.

scholarly journals DOES GROWTH OPPORTUNITIES MODERATE THE RELATIONSHIP BETWEEN PROFITABILITY AND LIQUIDITY TOWARD FIRM VALUE?

2019 ◽  
Vol 2 (1) ◽  
pp. 1-8
Author(s):  
Sri Hermuningsih ◽  
Kusuma Chandra Kirana ◽  
Teguh Erawati
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Firm Value ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Growth Opportunities ◽  
The Impact ◽  
The Relationship ◽  
Value Growth

The objective of this study is to analyze (1) the factors that affecting firm value, and (2) the impact of growth opportunities to profitability and liquidity and firm value. Sample used is manufacture companies listed in Indonesia Stock Exchange 2012-2015 Data were analyzed using multiple regression analysis and moderate regression. Based on the findings, we conclude that profitability has a positive relationship to firm value. Liquidity has a positive relationship to firm value. Growth opportunities are able to moderate the relationship between profitability and liquidity toward firm value.

PROFITABILITY, GROWTH OPPORTUNITIES, LEVERAGE, UKURAN PERUSAHAAN, DAN KEBIJAKAN DIVIDEN

2017 ◽  
Vol 2 ◽  
pp. 227-240
Author(s):  
Diyan Lestari
Keyword(s):  
Automotive Industry ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Panel Regression ◽  
Positive Signal ◽  
Growth Opportunities ◽  
Return On Equity ◽  
Negative Effect

Dividend policy is one of the most important activities which investors will wait and interpret the action as a positive signal because it indicates the firm performance (a firm which distributes dividend considered has better performance). Dividend policy is a strategical decision since it will impact firm credibility and firm value. This study aims to analyze the effect of profitability, growth opportunities, leverage, and size on dividend policy in the automotive industry which listed in Indonesia Stock Exchange from 2009 to 2016. The automotive industry is one of Indonesian middle-class standard measurement and it will be the biggest automotive ASEAN market in 2019. We use secondary data and use pooling regression (panel regression) to analyze the result of the study. The result shows that profit margin, return on asset, and size has positive and statistically significant on dividend policy, growth opportunities has the negative effect and statistically significant on dividend policy, while return on equity and leverage do not affect the dividend policy. Keywords: Profitability, growth opportunities, leverage, firm size, dividend policy

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

scholarly journals IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

2021 ◽  
Vol 9 (3) ◽  
pp. 1156-1165
Author(s):  
Taymoor Ali ◽  
Muhammad Kashif Khurshid ◽  
Adnan Ali Chaudhary
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Financial Statements ◽  
Manufacturing Firms ◽  
Growth Opportunities ◽  
Dividend Payout ◽  
Relationship Of ◽  
The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

scholarly journals Investigating the Effect of Corporate Diversification on the Value of Companies in Tehran Stock Exchange

2018 ◽  
Vol 5 (2) ◽  
pp. 27
Author(s):  
Hoshang Amiri ◽  
Samare Sawari ◽  
Mahdi Bazrafshan
Keyword(s):  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Value ◽  
Corporate Diversification ◽  
Growth Opportunities ◽  
Enterprise Value ◽  
Natural Logarithm ◽  
Study Population ◽  
Independent Variable

This research examined effect of corporate diversification on the firm's value in companies listed in Tehran StockExchange during the years 2006 till 2013. To answer the question posed one hypothesis. The hypothesis examined therelationship between the company's diversification and growth opportunities. Dependent variable of the study iscompany's value. Enterprise value has been calculated by natural logarithm of the market value per share of thecompany's expected value. The independent variable of this research is diversification that was calculated by entropyindex. To select the sample size of the study population the systematic elimination method is used, and finally 263companies that were consistent with the research, was selected. To test the hypothesis of Panel data is used. The resultsshow a significant positive impact between diversification and company's firm value.

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