The Impact of Earnings Management on Dividend Policy: Empirical Analysis of Kse-100 Index Firms

For a number of purposes management of firms indulges in earnings manipulations. Moreover, to attract investors firms distribute dividend regularly, however sometimes to do so management can manipulate earnings information. in turn, such activities negatively affect the performance of firms in long run. Hence, in current paperinvestigated earnings manipulation and dividend policies of a sample of 76KSE-100 indexnon-financial listed firms ofPakistan stock exchange during2010-2016.Data are secondary in nature and collected from annual reportsof firms.For measurement of earnings manipulation used discretionary accruals of management activities andmodified cross sectional Jones model (1995) is used.Moreover, used random effect panel data techniquefor analysis. The final results revealed that earningsmanagement and dividend payout ratio as proxy of dividend policy are negatively and insignificantly associated. Therefore, concluded that if management involves in manipulation practices then they are unable to pay their obligations as dividend. Moreover, if the governance system is strong then management cannot manipulate true information because according to governance system management should comply and explain the dividend payment procedures.

Effect of Dividend Decisions on Market Performance of Share Prices for Commercial Banks Listed at Nairobi Securities Exchange

Dividend decisions are the approaches undertaken by the management of an organization to facilitate proper allocation of the cash flows from the business activities. They provide reasonable guidelines for the organization's actions based on the satisfaction of the investors' interests and organizational objectives. They strive to achieve the goals while they seek substantial profitability of the organization. The majority of the studies involving dividend decisions focused on determining the necessity for dividend policies in an organization. Others focused on assessing the Influence of the dividend policies on the stock return of the firm. Therefore, this study investigated the effects of dividend decisions on market performance of share prices for commercial banks listed at Nairobi Stock Exchange. The specific objective is; To determine the impact of dividend payouts on the stock performance of the commercial banks listed at Nairobi Stock Exchange The independent variables in the study is dividend payouts. The dependent variable was the performance of share prices for commercial banks listed at Nairobi Stock Exchange. The theoretical review included the bird in hand theory, information signaling theory, and tax differential theory. The research used a descriptive research design approach for 12 commercial banks' target population in Kenya. The study used secondary sources to collect data, which are the bank's annual data published on the Nairobi Stock Exchange website. The research used the SPSS software for analyzing the collected data. The results show that the constant dividend pay-out ratio and residual dividend policy are the major determinants of market performance of share prices. Discretional dividend policy does not significantly influence market performance of share prices of commercial banks. The study recommends the commercial banks to constantly make proper dividend decisions to ensure good market performance of the share prices.

The Influence of Investment, Liquidity and Profitability on Dividend Payout Ratio Policies of the 2015-2019 Indonesia Stock Exchange Listed LQ-45 Companies

Dividend policies aim to determine the number of dividends to shareholders and the amount to be reinvested (retained earnings). In this study, dividend policies were measured using the Dividend Payout Ratio (DPR). This study aimed to test and analyze the influence of investment, liquidity, and profitability on dividend payout ratio policies of the 2015-2019 Indonesia Stock Exchange Listed LQ-45 companies. The purpose is to find out and examine the pattern of Investment, Liquidity, and Profitability in the Dividend Payout Ratio Policy of Companies listed on LQ-45 Indonesia Stock Exchange 2015-2019. The subjects of this study were the Indonesia Stock Exchange Listed LQ-45 companies while the objects were the 2015-2019 financial statements. The population of this study was 45 companies with 30 companies as the samples after purposive sampling. Data were analyzed using multiple linear regression, classical assumption test, and hypothesis testing. The results of research in partially, investment and profitability had a significant and positive influence on the dividend payout ratio policies while liquidity had no influence on the dividend payout ratio policies. Simultaneously, investment, liquidity, and profitability had an 11.8% influence on the dividend payout ratio policies while the remaining 88.2% were explained by other variables such as leverage ratio, growth, and others.

Dividend policy and the downside risk in stock prices: evidence from the MENA region

PurposeThe aim of this paper is to document the impact of dividend policies on the downside risk in stock prices.Design/methodology/approachThe authors use the data for non-financial firms from the MENA region to test our arguments by estimating the pooled OLS regressions. The data cover the period between 2010 and 2018.FindingsThis paper shows that firms with higher dividend payouts have significantly lower downside risk in their stock prices than the other firms. The findings of this paper are robust across various proxies of dividend policy and across various sub-samples. This paper contends that lower downside risk associated with the stock prices of firms paying high dividends is due to the fact that these firms have lower agency problems. Lower agency problems reduce the downside risk in stock prices.Originality/valueTo the best of the authors’ knowledge, most of the prior research (covering the MENA region) overlooks the impact of dividend policy on the downside risk in stock prices. This paper fills this gap by documenting the relationship between the two by using the data for firms from the MENA region.

Effect of Profitability, Leverage, and Liquidity on Dividend Policy: Evidence from Manufacturing Companies in Indonesia

Profitability (ROA) and leverage (DER) have a favorable and material impact on the dividend policies of food and beverage manufacturing companies listed on the IDX. That is, if profitability and leverage continue to improve, so will the dividend policy. In comparison to liquidity (current ratio), which has a positive but negligible effect on the dividend policy of food and beverage manufacturing companies that are listed on the IDX. It may be concluded that while liquidity owned by the company can help enhance dividends, it cannot have a major impact on dividend policy reform. Increased dividend policy will entice investors. Thus, dividend policy can be improved by this research by optimizing asset utilization (ROA) and lowering the danger of debt relief (DER).