Determinants of corporate dividend policy in Indonesia

Lestari, Henny Setyo

doi:10.1088/1755-1315/106/1/012046

Cited by 16 publications

(29 citation statements)

References 11 publications

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“…The finding corroborated the reports of studies conducted in Nigeria by Rihanat et al (2017) and Okoro et al (2018). Also, by Lestari (2018) and Fitri et al (2016) in Indonesia, Jaara et al (2018) in Jordan;Nadeem et al (2018) in Pakistan; Adhikari (2015) in Nepal, and Yensu and Adusei (2016) using African countries. The result negates the findings of Musa (2009) carried out in Nigeria.…”

Section: Discussionsupporting

confidence: 87%

“…The coefficient of the percentage change in operating cash flow of -0.007 with ρ-value of 0.07 implies that firms with high operating cash flow tend to low propensity to pay dividend. This result negates the postulation of Fama and Miller (1971) agency cost of free cash flow hypothesis but aligned with the reports of Lestari (2018), Al-Taleb (2012) and Imran (2011). The negative mean value of -313.86 is an indication that Nigerian listed firms actually experienced high percentage reduction in their operating cash flows over the years, and this could be the result of the negative relationship between percentage change in operating cash flow and dividend payout.…”

Section: Discussionsupporting

confidence: 84%

“…The report corroborated the findings of Kumar and Sujit (2018), Gangil and Nathani (2018), Fitri et al (2016), Sanyaolu et al (2017) and Rihanat et al (2016), who discovered a significant negative relationship between firms growth and dividend decision. Similar but insignificant findings were reported by Lestari (2018), Nadeem et al (2018) and Mahdzan et al (2016). On the contrary, Nkrumah et al (2018) and Yusniliyana and Suhaiza (2016) obtained an insignificant positive relationship between growth and dividend decision; while Tahir and Mushtaq (2016) discovered that growth has significant positive effect on dividend payout.…”

Section: Leverage As Determinant Of Dividend Payoutsupporting

confidence: 65%

“…Similar but insignificant results were obtained by Gwahula and Mnyavanu (2018), Rihanat et al (2016) and Sindhu (2014) while Gangil and Nathan (2018), Brahmaiah (2018), and Okoro et al (2018), reported an insignificant negative relationship between firm size and dividend decision. On the contrary, Mahdzan et al (2016), Lestari (2018) and Bushra and Mizra (2015) concluded that the larger the firm, the lower the propensity to pay dividend. Kumar and Sujit (2018) and Nishant and Ramesh (2015) reported that dividend decision is positively and significantly influenced by the agency cost.…”

Section: Firm Size As Determinant Of Dividend Payoutmentioning

confidence: 99%

“…The result of the study carried out by Lestari (2018), Al-Taleb (2012) and Imran (2011) revealed that cash-flow exerts a significant negative influence on firm propensity to pay dividend. Similarly, Demirgüneş (2015) and Soodur et al (2016) found negative but insignificant relationship between cash-flow and dividend payout.…”

Section: Operating Cash-flow As Determinant Of Dividend Payoutmentioning

confidence: 99%

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Accounting information and dividend payout prediction in Nigerian listed manufacturing firms

Ogundajo¹,

Enyi²,

Akintoye³

et al. 2019

J. Account. Taxation

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Investors' curiosity on the worth of their investment could be resolved with the availability of sufficient information in predicting their returns and security. Several studies linked dividend payout to the performance of manufacturing firms in Nigeria but a few considered information as a signal to performance not necessarily to dividend. This paper examined the usefulness of accounting information in predicting the investors return especially dividend payout. Ex-post facto design was adopted using secondary data obtained from annual reports and accounts of 36 selected manufacturing firms for a period of 20 years (1997-2016). The results of the regression (fixed effects) analysis carried out revealed that lagged dividend, leverage and sales growth have significant positive effect on dividend payout while earnings per share, operating cash-flow and firm size influences dividend payout ratio negatively with the exemption of asset utilization ratio with insignificant effect. It is evident that accounting information is useful to investors' in predicting the returns on their investment and dividend payout. Investors should look beyond past dividend in forecasting expected returns but several factors as presented in the financial statements in taking informed investment decisions.

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