scholarly journals Dividend Policy on IPOs Companies in Indonesia: A Life Cycle Theory Test

2021 ◽  
Vol 18 ◽  
pp. 21-30
Author(s):  
Muhamad Umar Mai
Keyword(s):  
Life Cycle ◽  
Initial Public Offerings ◽  
Firm Size ◽  
Firm Age ◽  
Return On Assets ◽  
Public Offerings ◽  
Life Cycle Theory ◽  
Growth Opportunity ◽  
Propensity To Pay ◽  
Retained Earnings

This study intends to assess the accuracy of life cycle theory prediction in explaining the dividendpayment policies when a company in Indonesia conducts the Initial Public Offerings. Technically, this studyaims to (1) examine the impacts of Retained Earnings to Total Equity (RE/TE), return on assets, firm age, firmsize, and growth opportunity toward propensity to pay dividends, and (2) examine the impacts of RE/TE, returnon assets, firm age, firm size, and growth opportunity toward dividend pay-out ratio. The population of thisstudy was all companies that conducted the Initial Public Offerings on the Indonesia Stock Exchange from2000 to 2017. The binary logistic regression model was used to analyze the data for reaching the first purposewhile the ordinary least square was applied to answer the second one. The results show that dividend paymentpolicies in the first year of companies conduct the Initial Public Offerings are in line with the life cycle theoryprediction. It is proved by the positive and significant impacts of RE/TE, return on assets, firm age, and firmsize toward propensity to pay dividends. Besides, it is also proved by the positive and significant impacts ofreturn on assets and firm size toward dividend pay-out ratio; as well as the negative and significant impact ofgrowth opportunity toward dividend pay-out ratio. The study does not acquire that growth opportunity gives asignificant impact on the propensity to pay dividends, and RE/TE and firm age significantly impact dividendpay-out ratio.

The Underpricing of Initial Public Offerings in the Philippines from 1987 to 1997

1999 ◽  
Vol 02 (03) ◽  
pp. 285-300 ◽  
Author(s):  
Michael J. Sullivan ◽  
Angelo A. Unite
Keyword(s):  
Initial Public Offerings ◽  
The Philippines ◽  
Firm Age ◽  
Ipo Underpricing ◽  
Market Conditions ◽  
Public Offerings ◽  
Regulatory Policies ◽  
Size Firm

In this paper we report returns for initial public offerings (IPOs) in the Philippines and investigate some characteristics found in other countries to affect returns, specifically offer size, firm age, and industry grouping. For a sample of 104 IPOs during the 11-year period 1987 through 1997, we find average initial returns of 22.69 percent. We do not find that offer size, firm age, or industry groupings affect IPO underpricing and conclude from our findings that underwriters who price Philippine IPOs face different regulatory policies, contractual mechanisms, market conditions than those present in other markets.

scholarly journals Are dividends disappearing and is the life-cycle theory of dividends relevant to Canadian stock market?

2011 ◽  
Vol 8 (4) ◽  
pp. 444-450
Author(s):  
Sazali Abidin ◽  
Krishna Reddy ◽  
Jiani Wang
Keyword(s):  
Life Cycle ◽  
Stock Market ◽  
Significant Relationship ◽  
Payout Policy ◽  
Industrial Firms ◽  
Dividend Payout ◽  
Listed Firms ◽  
Life Cycle Theory ◽  
Fama And French ◽  
Retained Earnings

We investigated the dividend payout policy of the companies listed in the Canadian stock market to establish the relevancy of life-cycle theory of dividends among the sample stocks. While investigating whether dividend is disappearing in the Canadian stock market, we analyzed the proportion of firms paying cash dividends as in Fama and French (2001) and the aggregate real dividends paid by industrial firms as in DeAngelo, DeAngelo and Skinner (2004). Our sample ranges from 182 firm-years data in 1997 and to 999 firm-years in 2007. For the life-cycle theory of dividends, we also estimate a firm’s stage in its financial life cycle by the amount of its retained earnings as in DeAngelo, DeAngelo and Stulz (2006). Our findings indicate that proportion of dividend paying firms to total firms is on a decline but the aggregate real dividends of dividends payers is increasing. Our findings support the view provided by DeAngelo et. al. (2004) that dividends in Canadian listed firms are not disappearing. In addition, we report a positive and statistically significant relationship between the probability that a firm pays dividends and its earned/contributed capital mix, thus supporting the life-cycle theory of dividends.

scholarly journals Rasio Keuangan: Studi Komparasi Pada Perusahaan Industri Manufaktur dan Sektor Jasa Yang Melakukan Initial Public Offerings (IPO) Tahun 2018

2020 ◽  
Vol 3 (2) ◽  
Author(s):  
T. Husain ◽  
Elvia Puspa Dewi
Keyword(s):  
Initial Public Offerings ◽  
Manufacturing Industry ◽  
Return On Assets ◽  
Current Ratio ◽  
Book Value ◽  
Public Offerings ◽  
Activity Ratios ◽  
Asset Turnover ◽  
Equity Ratio ◽  
Profitability Ratios

Tujuan dari penelitian ini adalah untuk menjelaskan bagaimana signifikansi perbedaan rasio keuangan perusahaan industri manufaktur dan sektor jasa yang melakukan initial public offerings (IPO) tahun 2018. Rasio keuangan menggunakan 5 (lima) pengukuran yaitu rasio likuiditas, rasio aktivitas, rasio solvabilitas, rasio profitabilitas dan rasio prospek pasar dengan masing-masing proksi current ratio, total asset turnover, debt-to equity ratio, return on assets dan price-to book value. Sampel penelitian melibatkan 32 perusahaan yang diperoleh melalui metode purposive sampling. Metode analisis data menggunakan uji statistik dengan teknik Independent Sample T-Test dan Mann Whitney Test. Hasil penelitian menunjukkan bahwa rasio likuiditas, rasio solvabilitas dan rasio prospek pasar perusahaan industri manufaktur dan sektor jasa memiliki perbedaan yang signifikan sedangkan rasio aktivitas dan profitabilitas tidak memiliki perbedaan yang signifikan.This research aim to explains how the significance of differences financial ratio's in manufacturing industry and service sectors company who do the initial public offerings (IPO) in 2018. Financial ratio's using 5 (five) measurements i.e. liquidity ratios, activity ratios, solvency ratios, profitability ratios and market prospect ratios with each current ratio, total asset turnover, debt-to equity ratio, return on assets and price-to-book value. The research sample involved 32 companies that were obtained through a purposive sampling method. The methods analysis uses statistical tests with the Independent Sample T-Test and Mann Whitney Test techniques. The results showed that the liquidity ratios, solvency ratios and market prospect ratios of the manufacturing industry and services sector have a significant differences while the activity ratios and profitability ratios didn't have significant differences.

scholarly journals ANALISIS FIRM SIZE, GROWTH OPPORTUNITY DAN TOTAL ASSET TURN OVER TERHADAP RETURN ON ASSET KASUS PADA PERUSAHAAN FOOD BEVERAGES

2019 ◽  
Vol 4 (1) ◽  
pp. 65-70
Author(s):  
Nailal Husna
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Financial Statements ◽  
Total Asset ◽  
Return On Assets ◽  
Growth Opportunity ◽  
Size Growth ◽  
Asset Growth ◽  
Turn Over ◽  
A Company

The object of this study is the Food Beverages company whose shares are listed on the Indonesia Stock Exchange 2009 until 2013 period, and the sample is a company that is always consistent issued financial statements in the period of observation. The purpose of this study analyzed the factors that caused the decline or fluctuations in the value of its profitability. And the research variables are Return On Asset (Y), Firm Size (X1), Growth Opportunity (X2), Total Asser Turn Over (X3). Based on the analysis and discussion of the results of hypothesis testing then the conclusion is the Firm Size significantly influence the Return On Asset, Growth Opportunity whereas no significant effect on Return On Assets, And On variable Total Asset Turn Over significantly influence the Return On Asset. Keywords : Firm Size, Growth Opportunity, Total Asser Turn Over, Return On Asset, Food Beverage.

Testing dividend life-cycle theory in the Islamic and conventional banking sectors of GCC countries

2021 ◽  
Vol 12 (2) ◽  
pp. 276-300 ◽  
Author(s):  
Ibrahim Yousef ◽  
Sailesh Tanna ◽  
Sudip Patra
Keyword(s):  
Life Cycle ◽  
Stock Exchanges ◽  
Islamic Banks ◽  
Content Type ◽  
Life Cycle Theory ◽  
Dividend Payments ◽  
Gcc Countries ◽  
Default Rates ◽  
Conventional Banks ◽  
Retained Earnings

Purpose This paper aims to present a comparative evaluation of the determinants affecting the likelihood of dividend payouts by Islamic and conventional banks in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The authors used the dynamic panel logit model to test dividend life-cycle theory by analyzing the determinants affecting the likelihood of dividend payouts by GCC banks. Moreover, the authors used multinomial logistic regressions to extend the results where the dependent variable is a nominal variable equal to 1 for non-payment of dividends, 2 for lower dividend payments and 3 for higher dividend payments. Findings The authors report a finding consistent with the life-cycle theory of dividends where a higher proportion of retained-earnings-to-contribution mix implies a greater likelihood of dividend payments, apart from conventional characteristics such as profitability, size and growth. However, the authors find marked differences in the magnitude and significance of the life-cycle characteristics explaining the likelihood of dividend payouts for Islamic and conventional banks. The authors also find that Islamic banks are smaller and less profitable relative to conventional banks but have higher growth rates, which helps to explain why the proportion of dividend non-payments is higher for Islamic banks than for conventional banks. The results also indicate that the higher default rates and business risk associated with GCC banks reduces their propensity to pay dividends. Practical implications The topic of dividends remains an important puzzle in the field of modern finance. The findings have significant implications for a variety of stakeholders in both Islamic and conventional banks in GCC countries, including investors, depositors, analysts, managers, regulators and stock exchanges. Originality/value This paper aims to contribute to the literature by drawing on life-cycle theory as a basis for comparing the determinants affecting the likelihood of dividend payouts by Islamic and conventional banks in the GCC countries.

INITIAL RETURN DAN RETURN 7 HARI SAHAM-SAHAM IPO DI BURSA EFEK INDONESIA

2019 ◽  
Vol 4 (3) ◽  
pp. 339-350
Author(s):  
Basuki Toto Rahmanto ◽  
Iman Sofian Suriawinata
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Financial Information ◽  
Government Ownership ◽  
Return On Assets ◽  
Positive Direction ◽  
Public Offerings ◽  
Initial Return ◽  
Equity Ratio ◽  
Auditor Reputation

The purpose of the study is to determine whether financial information that is proxied by the current ratio, return on assets, and debt to equity ratio and non-financial information proxied by auditor reputation, percentage of stock offerings, company age, and government ownership affect initial return and stock return 7 days. The sample used in this study are companies that conduct initial public offerings on the Indonesia Stock Exchange for the period of 2012 to 2016. The sampling method used was purposive sampling and the statistical method used is linear regression. The results of the study obtained the debt equity ratio, auditor reputation and company age negatively affected the initial return. The return of 7 days after the IPO is not influenced by financial and non-financial information, but the initial return affects the return of 7 days after the IPO in a positive direction. Keywords: initial return, return  7 day post IPO

MODEL KEBIJAKAN DIVIDEN BERDASARKAN SIKLUS HIDUP PERUSAHAAN: STUDI EMPIRIS DI INDONESIA

2018 ◽  
Vol 3 (2) ◽  
pp. 263
Author(s):  
Irdha Yusra ◽  
Lisa Amelia Herman ◽  
Nova Begawati
Keyword(s):  
Life Cycle ◽  
Stock Exchange ◽  
Tobit Regression ◽  
Firm Level ◽  
Life Cycle Theory ◽  
Dividend Payments ◽  
Investment Opportunities ◽  
Research Findings ◽  
Research Objects ◽  
Retained Earnings

<p><em>In the life cycle theory of the company, it is stated that the Company which is at the established stage has the ability to make money beyond its ability to find profitable investment opportunities. The Company will distribute cash flow optimally to stakeholders in the form of dividend payments. The purpose of this study is to examine the effect of retained earnings ratio (proxied with retained earnings to total equity) on the probability and rate of dividend payments based on the life cycle of the firm. Companies listed on the Indonesia Stock Exchange period 2012 - 2016 are designated as research objects. Meanwhile, the sample is selected using criteria considered by the researcher (judgment sampling). Hypothesis testing is done by using the statistical method that is probit and tobit regression. The research findings show that retained earnings have a positive and significant effect on the probability and rate of dividend payments. However, the results of the study do not show significant evidence that retained earnings have a stronger effect on the probability and firm level of paying dividends.</em></p><p> </p><p>Dalam teori siklus hidup perusahaan dinyatakan bahwa Perusahaan yang berada pada tahap mapan memiliki kemampuan dalam menghasilkan uang melebihi kemampuannya dalam menemukan peluang investasi yang menguntungkan. Perusahaan tersebut akan mendistribusikan aliran kas secara optimal kepada stakeholders berupa pembayaran dividen. Tujuan penelitian ini adalah untuk menguji pengaruh rasio laba ditahan (diprosi dengan retained earnings to total equity) terhadap probabilitas dan tingkat pembayaran dividen berdasarkan siklus hidup perusahaan. Perusahaan yang listed di Bursa Efek Indonesia periode 2012 – 2016 ditetapkan sebagai objek penelitian. Sedangkan, sampel dipilih menggunakan criteria-kriteria yang dipertimbangkan oleh peneliti (judgment sampling). Pengujian hipotesis dilakukan dengan menggunakan metode statistik yaitu regresi probit dan tobit. Hasil penelitian kamimenunjukkan bahwa laba ditahan berpengaruh positif dan signifikan terhadap probabilitas dan tingkat pembayaran dividen. Namun, hasil penelitian tidak memberikan bukti yang signifikan bahwa laba ditahan berpengaruh lebih kuat terhadap probabilitas dan tingkat perusahaan mapan membayar dividen.</p>

scholarly journals DETERMINAN KINERJA KEUANGAN DENGAN SIZE SEBAGAI MODERASI

2019 ◽  
Vol 3 (2) ◽  
pp. 257-268
Author(s):  
Peni Setiyo Wati ◽  
JMV Mulyadi ◽  
Widarto Rachbini
Keyword(s):  
Firm Size ◽  
Profit Margin ◽  
Total Asset ◽  
Firm Age ◽  
Return On Assets ◽  
Net Profit ◽  
Size Firm ◽  
Asset Turnover

Penelitian ini bertujuan untuk menguji determinan kinerja keuangan dengan firm size sebagai moderasi. Faktor-faktor yang digunakan dalam penelitian ini terdiri dari : total asset turnover, likuiditas, net profit margin, leverage, firm age dan firm size. Firm size diproporsikan sebagai variabel pemoderasi pengaruh total asset turnover, likuiditas, net profit margin, leverage, firm age terhadap kinerja keuangan. Proxy kinerja keuangan dengan menggunakan Return On Assets (ROA). Data penelitian ini diperoleh 208 perusahaan industri manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) periode 2014-2017. Teknik analisis yang digunakan untuk pengujian hipotesis adalah dengan menggunakan program WARP-PLS 6.0. Hasil pengujian menunjukan bahwa total asset turnover, likuiditas, net profit margin, leverage, firm age, memiliki pengaruh signifikan terhadap kinerja keuangan. Firm size tidak memiliki pengaruh signifikan terhadap kinerja keuangan. Firm size memoderasi pengaruh net profit margin, firm age terhadap kinerja keuangan. Firm size tidak memoderasi pengaruh leverage  terhadap kinerja keuangan. Firm size tidak memoderasi pengaruh total asset turnover, likuiditas, leverage terhadap kinerja keuangan.

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