Dividend Policy Determinants: An Investigation of the Influences of Stakeholder Theory

Holder, Mark E.; Langrehr, Frederick W.; Hexter, J. Lawrence

doi:10.2307/3666276

Cited by 217 publications

(238 citation statements)

References 18 publications

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“…Lower insider ownership indicates higher agency costs; therefore, outsiders who hold larger percentage of shares will demand higher dividends to reduce agency costs. Holder et al (1998);Rozeff (1982) find empirical evidence supporting the negative relationship between the percentage of insider ownership and dividend payments.…”

Section: Decisions Of Dividend Levelsmentioning

confidence: 98%

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A Two-Step Approach to Investigate Dividend Policy: Evidence from Vietnamese Stock Market

Alphonse¹,

Trần²

2014

IJEF

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Dividend policy includes two steps of making decisions, namely dividend payment and dividend magnitude; however, several prior studies focus on only one in two steps. This study investigates dividend policy in Vietnamese stock market with Heckman's two-step regression approach which fixes the selection bias caused by censored research data. Research findings show that in the first step, likelihood of dividend payment is positively affected by profitability, firm size and earned/contributed capital mix and state control while it is negatively related to investment opportunities, stock liquidity and insider ownership. In the second step, investment opportunities and insider retention have a negative impact on dividend yields while leverage has negative and positive impacts on payout ratio and dividend yield respectively. Contrary to free cash flow hypothesis, free cash flows to total assets ratio is negatively related to payout ratio.

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Section: Decisions Of Dividend Levelsmentioning

confidence: 98%

“…Holder et al (1998) initially employ free cash flow to test agency theory with the sample of 477 firms listed in US stock market between 1983 and 1990. Their research findings show firms with higher free cash flows pay lower levels of dividends.…”

Section: Decisions Of Dividend Levelsmentioning

confidence: 99%

A Two-Step Approach to Investigate Dividend Policy: Evidence from Vietnamese Stock Market

Alphonse¹,

Trần²

2014

IJEF

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“…La Porta et al (2000) mengatakan, bahwa jika perusahaan memiliki free cash flow, maka manajer akan menghamburhamburkan dana tersebut untuk proyek investasi, bahkan ketika upaya proteksi bagi investor meningkat. Oleh karena itu, studi yang dilakukan Holder et al (1998) dan Mollah et al (2002) menyarankan agar perusahaan dengan free cash flow yang besar, seharusnya membayar dividen lebih banyak untuk menurunkan kemungkinan penyalahgunaan free cash flow oleh para manajer…”

Section: Free Cash Flowunclassified

Free Cash Flow, Leverage, Besaran Dan Siklus Hidup Perusahaan: Bukti Kebijakan Deviden Di Indonesia

Paramita

2015

JREM

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ABSTRAKSIPenelitian ini akan menguji kebijakan dividen yang didasarkan hipotesis. Namun pembayaran dividen itu sendiri juga tetap merupakan topik yang diperdebatkan. Tujuan penelitian ini adalah menguji pengaruh free cash flow, leverage, besaran serta siklus hidup perusahaan terhadap kebijakan dividen. Data diperoleh dari Bursa Efek Indonesia dengan menggunakan sampel perusahaanperusahaan manufaktur di sub sektor industri barang konsumsi selama periode 2011-2013. Regresi berganda digunakan untuk menganalisis data. Didasarkan pada pengujian hasil, penelitian ini menunjukkan bahwa semua variabel independen berpengaruh pada kebijakan deviden, dimana FCF, DER, dan ROA berpengaruh positif terhadap kebijakan dividen, sementara besaran dan RE/TE tidak berpengaruh pada kebijakan dividen. Penelitian ini memberikan kontribusi pada topik penelitian dividen, serta membantu perusahaan dalam menjaga kemampuannya membagikan dividen kepada pemegang sahamnya serta akan menghilangkan keraguan apakah perusahaan-perusahaan manufaktur di Indonesia menggantungkan pada utang atau pada free cash flow untuk membayar dividen. PENDAHULUANKeberhasilan suatu perusahaan dipengaruhi oleh faktor internal dan eksternal. Krisis keuangan pada tahun 2008 secara global telah menjadikan perekonomian di berbagai negara melemah dan berdampak pada penurunan PDB Indonesia dan memperlambat laju pertumbuhan sektor manufaktur pada tahun 2008 hingga 2009. Pada sektor manufaktur, sub sektor barang konsumsi sangat berperan terhadap PDB industri non migas. Pertumbuhan sub sektor barang industri memiliki pengaruh terbesar jika

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“…Jensen and Meckling (1976) argue that large firms increase dividends to deter agency costs. Holder, Langrehr and Hexter (1998) find that larger firms prefer paying dividends than smaller firms because larger firms can get an easier access to capital market at a lower cost. Rozeff (1982) and Jensen (1986) find that firms with higher debt financing avoid paying more dividends to reserve earnings.…”

Section: Introductionmentioning

confidence: 98%

Dividend Policy and Investment Decisions of Korean Banks

Lee¹

2015

RES

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The objective of this study is to investigate the inter-relationship between banks' dividend policy and investment decisions in terms of risk management and profit maximization. From the panel regression analysis, this study finds that the bank's dividend policy appears to be closely related to both incentives of profit maximization and risk management. In this study our empirical methodology is based on the general notion that the bank's expectation on future economic condition is best captured by various measures of the components of ex-ante risky asset portfolios as well as the widely used risk measures such as capital ratio, nonperforming loans and return on asset which simply reflect the bank's historical performance. We find that when the banks have positive expectation on future economic condition, they tend to increase the proportion of risky asset portfolios to maximize expected profits rather than putting highest priority on risk management of the bank, and tend to pay more dividends based on higher expected profits. On the other hand, when the expectation on future economic condition is negative, the banks tend to put highest priority on the bank's risk management by increasing the proportion of safe asset portfolios and decreasing dividends based on lower expected profits.

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Dividend Policy Determinants: An Investigation of the Influences of Stakeholder Theory

Cited by 217 publications

References 18 publications

A Two-Step Approach to Investigate Dividend Policy: Evidence from Vietnamese Stock Market

A Two-Step Approach to Investigate Dividend Policy: Evidence from Vietnamese Stock Market

Free Cash Flow, Leverage, Besaran Dan Siklus Hidup Perusahaan: Bukti Kebijakan Deviden Di Indonesia

Dividend Policy and Investment Decisions of Korean Banks

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