Dividend policy and earnings management across countries

He, Wen; Ng, Lilian; Zaiats, Nataliya S.; Zhang, Bohui

doi:10.1016/j.jcorpfin.2016.11.014

Cited by 106 publications

(82 citation statements)

References 63 publications

(77 reference statements)

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“…This study also accepts H2 since Table 2 also shows that non-discretionary (N.Disc) has positive significant sign on dividend policy. Notice the work of Lara et al (2005), Dewenter and Warther (1998), Kato et al (2002), Daniel et al (2008) and He et al (2017) then this study convinces that N.Disc somehow relates to managers behavior to record transactions according to legal standard of accounting, thus, it has tendency for less earnings manipulation. The result of N.Disc on this model also confirm the result of ROA which indicates that most of the managers of Indonesian dividend payers tend to behave as steward to their principal stockholders.…”

Section: Discussionsupporting

confidence: 52%

“…The evidence of Daniel et al (2008) shows that firms which normally pay dividends tend to manage their earnings upward to keep the dividend threshold for stockholders. The recent study of He et al (2017) show the evidence that firms as dividend payers have a tendency for less earnings' manipulation and use dividend to mitigate the agency conflict. Chansarn and Chansarn (2016) provide evidence that discretionary accruals or earnings management has negative relationship with dividend policy.…”

Section: Dividend Policy and Stewardship Theorymentioning

confidence: 99%

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Agent, Steward, and Dividend Policy

Novi¹

2019

ERSJ

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Purpose:The main objective of this study is to examine whether the dividend policy of Indonesian firms is based on agency theory or stewardship theory. The study investigates the relationship between profitability, non-discretionary accruals, discretionary accruals and dividend policy. Design/Methodology/Approach: The final sample of this study is a total of 28 firms of consumers' goods industries listed in Indonesia Stock Exchange during the period of 2010 to 2017 and conducts logistic regression for hypotheses testing. Findings: The result of the first model shows that ROA and non-discretionary accruals (nondisc) have positive sign and they are significant on dividend policy. The second model shows that ROA has a positive and significant effect on dividend policy, while non-disc is insignificant on dividend policy. The third model shows that ROA and non-disc are consistently positive and significant, while discretionary accruals are consistently insignificant on dividend policy. The fourth model shows that ROA and non-disc have positive sign and significant on dividend policy, while disc is insignificant on dividend policy. The fifth model shows that ROA and non-disc have a positive and significant sign on dividend policy, while DAR, AG and disc are insignificant on dividend policy. The results of profitability on all models also indicate that the objective of managers for most Indonesian dividend payers are align with the objective of stockholders in context of stewardship. The findings imply that most of firms as payers tend to increase dividends when their profitability increases. Practical Implications: It appears that dividend payers with strong profitability as based on their policy, generally do not engage in managing its earnings while reporting the accounting information. Originality/Value: The study provides empirical evidence for dividend policy in context of agency and stewardship perspectives. This study also identifies the behavior of firm insiders whether play as an agent or steward in relationship with their principals.

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Section: Discussionsupporting

confidence: 52%

Section: Dividend Policy and Stewardship Theorymentioning

confidence: 99%

Agent, Steward, and Dividend Policy

Novi¹

2019

ERSJ

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“…By examining Lilian et al (2012), the dividend has a signal of high obedience on accounting standard, because of the high involvement of shareholders in monitoring and checking the strategic decision. He et al (2017) found that the relationship between dividend and actual return has a positive effect; it strengthens Lawson and Wang (2016) by stressing on this policy as a guideline for nonmanipulation activity. Considering the advantages of dividend to level up the positive investor's perception maximally, so this research uses this policy as a moderation variable.…”

Section: Second: the Earnings Value-based Hypothesismentioning

confidence: 95%

The impact of innate accruals quality on the future market value moderated by dividend policy

Siladjaja

Anwar²

2020

AJAR

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PurposeThe purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.Design/methodology/approachThis research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.FindingsThe results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.Research limitations/implicationsThis test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.Originality/valueBy calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

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“…Manajemen laba merupakan suatu aksi manipulasi atau kegiatan pengendalian laba perusahaan (Haider et al, 2012). Jika laba tidak dibagikan dalam bentuk dividen kepada pemegang saham, maka kelebihan dana di perusahaan rentan untuk dieksploitasi oleh direksi untuk kepentingan pribadi, sehingga dividen menjadi sebuah kebijakan yang mengendalikan tindakan yang manipulatif terhadap laba perusahaan serta memperkecil kesempatan untuk menggunakan dana tersebut untuk kepentingan pribadi (He et al, 2017).…”

Section: Bursaunclassified

Tata kelola perusahaan dan manajemen laba terhadap kebijakan dividen di Indonesia

Chandra

Junita

2021

JEM

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This research expected to understand the effect of corporate governance and earning management on dividend policy. The dependent variable selected for the research was the dividend payout ratio, while the independent variable was determined by the size of the board of commissioners, independence of board commissioners, managerial ownership, individual ownership, institutional ownership, directional accrual, firm age, firm size, leverage, and profitability. Samples for research were all companies registered under the Indonesia Stock Exchange, these were chosen using a purposive sampling method with a total of 865 observational data that met the criteria for 5 years. The panel regression method is used to analyze the impact of each independent variable on the dependent variable. The fixed-effects model is found to be the best regression model in this research. The research concludes that individual ownership, institutional ownership and profitability have a significant positive effect on dividend policy. Meanwhile, the size of the board of commissioners, independence of board commissioners, managerial ownership, earning management, firm size, firm age and leverage do not affect dividend policy. Real earning management and ownership factors are encouraged in future studies such as family ownership, public ownership, and foreign ownership in examining the impact on dividend policy.

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Dividend policy and earnings management across countries

Cited by 106 publications

References 63 publications

Agent, Steward, and Dividend Policy

Agent, Steward, and Dividend Policy

The impact of innate accruals quality on the future market value moderated by dividend policy

Tata kelola perusahaan dan manajemen laba terhadap kebijakan dividen di Indonesia

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