scholarly journals Does Ownership Concentration Affect Profitability and Dividend Policy? Evidence from Listed Banks in Jordan

2021 ◽  
Vol 18 ◽  
pp. 1019-1027
Author(s):  
Ahmad Dahiyat ◽  
Esra Al-Nsour
Keyword(s):  
Dividend Policy ◽  
Investment Decisions ◽  
Ownership Concentration ◽  
Agency Conflicts ◽  
Return On Equity ◽  
Controlling Shareholders ◽  
Large Shareholders ◽  
Simple Regression

This paper examines how the ownership concentration affects banks’ profitability and dividend policy in Jordan. All banks listed on the Amman Exchange were selected (16 banks) over the period 2010 to 2019. Ownership concentration was defined as the percentage of ownership that equals or exceeds 5%, while profitability was defined by return on equity; dividend policy was defined by the pay-out ratio. Simple regression was utilized to examine the effect; the result revealed that ownership concentration has a positive significant impact on profitability, which means that banks with higher ownership concentration have better profitability, this result justified by the view of the power that controlling shareholders can greatly use to require management to make decisions that improve the performance. The finding showed a negative significant impact on dividend policy, which indicates that the existence of large shareholders can reduce agency conflicts; and maximize the wealth of the company. It is recommended that related parties especially investors should take the concentration of ownership as an important factor to take their investment decisions, whether related to purchasing banks’ shares for various purposes, or expectations of potential dividends.

scholarly journals On The Impact Of Family Versus Institutional Blockholders On Dividend Policy

2015 ◽  
Vol 31 (4) ◽  
pp. 1329 ◽  
Author(s):  
Raoudha Djebali ◽  
Amel Belanes
Keyword(s):  
Institutional Investors ◽  
Dividend Policy ◽  
Ownership Concentration ◽  
Independent Directors ◽  
Dividend Payout ◽  
Controlling Shareholders ◽  
Listed Firms ◽  
Empirical Results ◽  
Large Panel ◽  
The Impact

This paper investigates the effect of not only the controlling shareholders but also their identity on dividend policy. For a large panel of French firms during the period 2006-2010, we find that the dividend payout ratio increases with the ownership concentration. However, this result changes with the identity of the largest shareholder. Family-controlled firms are more tempted to distribute lower dividends while firms dominated by institutional investors likely distribute higher dividends. Empirical results also reveal that firms with more independent directors are associated with higher dividend payout in contrast to US cross-listed firms.

scholarly journals Keputusan Investasi, Keputusan Pendanaan, Kebijakan Deviden, Profitabilitas, Firm Size, dan Nilai Perusahaan pada Sektor Aneka Industri di Bursa Efek Indonesia

2020 ◽  
Vol 8 (4) ◽  
pp. 1394
Author(s):  
Baskoro Langgeng Pamuji ◽  
Ulil Hartono
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Company Size ◽  
Manufacturing Companies ◽  
Return On Equity ◽  
Natural Logarithm ◽  
Company Value ◽  
Positive Effect

This study aims to examine the effect of investment decisions, funding decisions, dividend policy, profitability and company size on firm value. In this study, company value is measured by Price to Book Value (PBV), Price Earning Ratio (PER) is used as a proxy for investment decisions, Debt to Equity Ratio (DER) is used as a proxy for funding decisions, Devided Payout Ratio (DPR) is used as a proxy dividend policy, Return On Equity (ROE) is used as a proxy for profitability and natural logarithm (ln) is used as a proxy for measure of firm value. This study uses a purposive sampling method to determine the number of samples. The sample used in this study were 10 manufacturing companies listed on the Indonesia Stock Exchange which published financial statements for the 2013-2017. The data analysis method uses multiple regression. The results showed that investment decisions had a positive effect on firm value. However, funding decisions had no effct on firm value, dividend policy had a negatif effect on firm value, profit had a positive effect on firm value and company size had a negatif affect the firm's value.

Pengaruh Keputusan Investasi, Kebijakan Hutang Dan Kebijakan Dividen Terhadap Nilai Perusahaan

2019 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Ivan Somantri ◽  
Hadi Ahmad Sukardi
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Sampling Technique ◽  
Mining Sector ◽  
Dividend Policies ◽  
Negative Effect ◽  
Debt Policy ◽  
Debt Policies

This study aims to determine how to influence simultaneously and partially investment decisions, debt policy and dividend policy on firm value in mining sector companies listed on the Indonesia Stock Exchange for the period 2013-2017. The research method used in this study is descriptive and associative methods. The population in this study were mining sector companies listed on the Indonesia Stock Exchange in the period 2013-2017, which amounted to 43 companies. The sampling technique used in this study is non probability sampling with purposive sampling method, so that the number of samples obtained is 8 companies. While the data analysis used in this study is panel data regression analysis with the fixed effect method. The results of the study show that partially investment decisions and debt policies have a positive effect on firm value. While dividend policy has a negative effect on firm value. In addition, the results of the study simultaneously show that investment decisions, debt policies and dividend policies affect the value of the company. The amount of investment decisions, debt policy and dividend policy in contributing influence to earnings management is 34.14%.

Pengaruh keputusan investasi, keputusan pendanaan, dan kebijakan dividen terhadap nilai perusahaan yang terdaftar di Bursa Efek Indonesia

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Dina Patrisia ◽  
Muthia Roza Linda ◽  
Ursa Yulianti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Secondary Data ◽  
Sampling Technique ◽  
Total Sample ◽  
Manufacturing Companies ◽  
Positive Direction ◽  
Company Value

This study aims to analyze the effect of investment decisions, funding decisions, and dividend policy on the value of the company. This research is classified as causative research. The populations in this study are all Manufacturing companies listed on the Stock Exchange in 2012-2016. The sampling technique in this study is using purposive sampling technique with a total sample of 213 samples. The data used is secondary data. The data analysis method used is multiple regression. The results showed that investment decision variables affect the value of the company in a positive direction, funding decisions affect the value of the company in a negative direction, and dividend policy affects the value of the company with a positive direction on Manufacturing companies listed on the IDX. With this research, it is expected that researchers who can further conduct research related to factors that influence the value of the company whose impact is higher than what researchers have met. By using different proxy and data processing methods to produce more accurate data processingKeywords: Investment decisions; funding decisions; dividend policy; company value

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Pengaruh ROE, EPS, OCF, Size, DER, CR dan Growth Terhadap Kebijakan Dividen pada Perusahaan Manufaktur di Bursa Efek Indonesia (BEI)

2019 ◽  
Vol 14 (2) ◽  
pp. 80
Author(s):  
Crystha Armereo ◽  
Pipit Fitri Rahayu
Keyword(s):  
Cash Flow ◽  
Dividend Policy ◽  
Regression Result ◽  
Manufacturing Companies ◽  
Current Ratio ◽  
Dividend Payout ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Equity Ratio ◽  
Operating Cash Flow

Abstract The objective of this research is to identify the influence of return on equity, earnings per share, operating cash flow, size, debt to equity ratio, current ratio, and growth to dividend payout. Data collected from manufacturing companies that listed on Indonesian Stock Exchange for three years period 2014 to 2016. Sample selected by using purposive sampling method. There are 38 companies meet the criteria and used as sample. The statistical method used in this research is multiple regression. Result of this research showed that return on equity, earnings per share, and growth have influence dividend payout but operating cash flow, size, debt to equity ratio, and current ratio have no influence towards dividend policy. Keywords: Dividend Policy, Return on Equity, Earnings per Share, Current Ratio,   Operating Cash Flow Size

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

Dividends and Expropriation

2001 ◽  
Vol 91 (1) ◽  
pp. 54-78 ◽  
Author(s):  
Mara Faccio ◽  
Larry H. P Lang ◽  
Leslie Young
Keyword(s):  
East Asia ◽  
Western Europe ◽  
Agency Problem ◽  
Controlling Shareholders ◽  
Predominant Form ◽  
Large Shareholders ◽  
Crony Capitalism ◽  
Top Manager

Whereas most U.S. corporations are widely held, the predominant form of ownership in East Asia is control by a family, which often supplies a top manager. These features of “crony capitalism” are actually more pronounced in Western Europe. In both regions, the salient agency problem is expropriation of outside shareholders by controlling shareholders. Dividends provide evidence on this. Group-affiliated corporations in Europe pay higher dividends than in Asia, dampening insider expropriation. Dividend rates are higher in Europe, but lower in Asia, when there are multiple large shareholders, suggesting that they dampen expropriation in Europe, but exacerbate it in Asia. (JEL G34, G35)

scholarly journals Pyramid groups and firm performance: empirical evidence from Canadian corporations

2010 ◽  
Vol 7 (3) ◽  
pp. 105-123 ◽  
Author(s):  
Gloria Y. Tian
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Negative Impact ◽  
Ownership Concentration ◽  
Legal Environment ◽  
Controlling Shareholders ◽  
Value Maximization ◽  
Using Data ◽  
Control Enhancing Mechanisms ◽  
And Control

Using data of Canadian corporations in 1994 and 2003, this study analyzes whether controlling shareholders of corporate pyramid groups, with substantial divergences in ownership and control, negatively or positively impact firm performance. We find some evidence that the combination of ownership concentration and pyramidal structure would lead to inferior firm performance and valuation, but little evidence concerning tunneling within groups. We argue the robust legal environment in Canada that encourages shareholder value maximization could mitigate the negative impact of control enhancing mechanisms on minority public investors.

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