Determinants of Corporate Dividends Policy: Evidence from an Emerging Economy

Manneh, Marwan Abu; Naser, Kamal

doi:10.5539/ijef.v7n7p229

Cited by 26 publications

(41 citation statements)

References 57 publications

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“…These results are different from the predictions that company size, as measured by market capitalization, negatively affects dividend policy. However, these findings are in line with Manneh and Naser (2015) that firm size has a positive and significant effect on the dividend payment ratio.…”

Section: Descriptive Statisticssupporting

confidence: 84%

“…Managerial ownership might also affect dividend payout policy. Companies with high growth tend to retain their profits to fund their investments (Manneh & Naser, 2015). The thing is that the higher the growth of the company, the greater is the fund needed to support the company's growth, but consequently, the paid dividend will be lower.…”

Section: Business Perspectivesmentioning

confidence: 99%

“…Al-Ajmi and Hussain (2011) and Labhane and Mahakud (2016) show that cash ratio has a positive effect on dividend policy, but Jabbouri (2016) and Khan and Shamim (2017) find a negative effect. Afza and Mirza (2011), Jabbouri (2016), Labhane and Mahakud (2016), and Manneh and Naser (2015) show that debt ratio has a negative relationship with the dividend policy, but Hudiwijono et al (2018) using Indonesian construction companies report a positive effect. Abor and Bokpin (2010), Jabbouri (2016), Kumar et al (2012), and Patra et al (2012) show that asset growth negatively affects dividend policy.…”

Section: Business Perspectivesmentioning

confidence: 99%

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Analysis of cash dividend policy in Indonesia stock exchange

Utami

Gumanti

2019

Investment Management and Financial Innovations

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Dividend policy has been puzzling for researchers for decades. The level of dividend varies not only across industries, but also across countries. This research analyzes the dividend policy of Indonesian public companies, in particular it examines the partial effect of cash ratio, debt ratio, company size, profitability, and asset growth on cash dividend policy in Indonesia Stock Exchange from 2008 to 2015. A total of 102 companies was used as a sample. The samples are divided into four groups: (1) a group of companies paying changeable dividends (Change group), (2) a group of companies paying continuous dividends, but then stop paying dividend (Omission group), (3) a group of companies that initially do not pay the dividends, but then continuously paying dividend (Initiation group); and (4) a group of companies paying constant dividends (Constant group). Results of hypotheses testing using multiple regression analysis show that profitability and asset growth affect dividend policy in all company groups. Company size affects dividend policy in the Change, Initiation, and Constant groups. Debt ratio influences dividend policy only in the Change group.

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Section: Descriptive Statisticssupporting

confidence: 84%

Section: Business Perspectivesmentioning

confidence: 99%

Section: Business Perspectivesmentioning

confidence: 99%

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Analysis of cash dividend policy in Indonesia stock exchange

Utami

Gumanti

2019

Investment Management and Financial Innovations

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“…In addition, Manneh and Naser (2015) examined the relationship between dividend policy and the attributes of non-financial companies listed on Abu Dhabi Securities Exchange (ADX) over the period 2010-2012. The result of the analysis revealed that dividend policy is positively and significantly associated with corporate profitability, risk, free cash flows, size, majority shareholders and industry.…”

Section: Empirical Evidence On the Dividend Theoriesmentioning

confidence: 99%

Dividend Announcements of Banking Sector in Gulf Area; Pre, During and Post the Recent Global Financial Crisis

Jaara¹,

Dalou²

2018

IJEF

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This research aims to analyze the movement of dividend policy announcements impact on share prices, and the performance of all listed banks in Gulf area pre-during-post the financial crisis. This research has positioned and utilized event study method, and dividend pay-out ratio to evaluate the movements in share prices of two event windows for 65 banks (All listed banks) from 2005 to 2013. The main results for this research showed that there is a strong signaling effect since most of the windows show positive impact of dividend announcements on the CAARS. Likewise, there can be equally significant lifecycle impact since the large banks show different pay out pattern as compared with the small banks. Moreover, there has been steady dividend pay by banks at an average even in the crisis periods. In addition, a proportion of payers have increased as compared to the non-payers over years, which is related to both life cycle and competition theories. The last finding presents that banking sector in the GCC countries have not been affected like other emerging countries during the global financial crisis, because they supported by oil prices.

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“…The study revealed that a situation with the payment of dividends in the corporate sector in Ukraine is quite indistinctive for more developed and emerging stock markets where payment of dividends is not an exclusion [Baker and Kapoor 2015, Forti and Schiozer 2015, Kadioglu et al 2015, Manneh and Naser 2015, Yaseen et al 2015 Is it possible to explain the mass abandonment of dividends payment with the help of modern theories of dividend policy, that were considered in the LITERATURE REVIEW section?.…”

Section: Discussionmentioning

confidence: 99%