Analysis of the Dividend Policy Decision-Making Mechanism of Chinese and Taiwanese Lithium Battery Industries

Abstract

This study mainly focuses on the mechanisms and influencing factors of formulating dividend policies in the Chinese and Taiwanese lithium battery industries. According to the relevant literature, enterprises should consider financial status, project operations, the decision preferences of their executives, and shareholder equity when drawing up dividend policies. This study first uses the Modified Delphi Approach to set up the hierarchy analysis structure, and then use the Fuzzy Analytical Hierarchy Process for the study method. From the empirical results, this study finds that there exist differences between Chinese and Taiwanese lithium battery manufacturing supply chains, in terms of the process and considered factors when making decisions regarding dividend policies. The empirical results of the study show that dividend policies of Chinese lithium battery manufacturers emphasize more on the future growth of enterprises, earnings expectation and retained earnings, investment decisions, enterprise scale, and operating performance and profit whereas Taiwanese lithium battery manufacturers focus more on information asymmetry.

Board dynamics, dividend pay-out policy and banking efficiency in an emerging market context

“…Previous studies have tested these relationships from different perspective. For instance, Sheng et al (2020) show that dividend policy decision drives the future growth and profits of battery manufacturing firms in China and Taiwan. Al-Kahmisi and Hassan (2018) indicated that the nature of board dynamics varies from country to country, but all countries generally have their own corporate governance codes that govern their efforts and direction.…”