Does the contribution of dividend to firm value depend on controlling shareholders?

Guizani, Moncef; Abaoub, Ezzeddine

doi:10.1057/jdg.2011.21

Cited by 6 publications

(7 citation statements)

References 39 publications

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“…So it is with this research, the results are consistent with research and Guizani Abaoub (2012), where the ROA has a significant positive relationship with the company's value or with abnormal return of shares. ROA is used to measure the effectiveness of the company in generating profits by way of utilizing the assets.…”

Section: ⅴ Discussionsupporting

confidence: 89%

Value Relevance of Financial and Non-Financial Information to Investor Decision

Honggowati¹

2015

Glob Bus Financ Rev

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The objective of this study is to examine the value relevance of financial and non-financial information to investor decision. Investors determine investment decisions from financial and non-financial information. In this research investor decision reflected on company's market performance, market performance is measured using Cumulative Abnormal Return (CAR). Financial information is measured using Return on Assets (ROA) and non-financial information using three components of Balanced Scorecard Method, which reflect, customer perspective, internal business process perspective, and learning and growth perspective. This study uses multiple regression to analyze the data of 121 manufacturing companies listed on Indonesia Stock Exchange (IDX) for the period 2010-2012. Sampling method in this research is conducted by the purposive sampling method. The findings show that the financial information which is measured by using the Return on Assets (ROA) was positively related to the market performance. On the other, from three components consist in non-financial information, customer perspective and internal busines and learning growth that has relation with market performance. Finally the results fully confirm the existence of a relationship between financial and non-financial information on market performance. Keywords: Cumulative Abnormal Return; Return on Assets; Customer Perspective; Internal Business Perspective; Learning andGrowth Perspective Ⅰ. IntroductionIn today's market, the changes in the business world from the industrial era into the information era are influenced by economic growth and technological advancement. Technological advancements can be used to obtain the information for the company to strengthen their market position. † Setianingtyas Honggowati Faculty of Economics and Business, Sebelas Maret University, Surakarta, Indonesia E-mail: setianingtyas_27@yahoo.co.id On the contrary, information of company's activities can be useful information to the other parties (e.g. regulators, competitors).Company's information was being able to effecting investor's and stakeholders decision-making processes. Chiung and Ming (2005) suggested that investment decision affect the company's market performance through stock price. Chiung and Ming (2005) suggested that investment decisions affect market performance through stock price. Then, the stock price changes reflect changes in the rate of expected returns or the rate of potential risks (Riley, Pearson and Trompeter, 2003;Wiersma,

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Section: ⅴ Discussionsupporting

confidence: 89%

Value Relevance of Financial and Non-Financial Information to Investor Decision

Honggowati¹

2015

Glob Bus Financ Rev

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“…Some studies that are not in line with the results of this study are the theories put forward by Miller and Modigliani who argue that the dividend policy does not affect the value of the company because according to them the dividend payout ratio is only the details and does not affect the welfare of shareholders (Boanyah, et al Increasing the value of dividends is not always accompanied by an increase in the value of the firm because the value of the company is determined only by the ability of the company to generate profits from the company's assets or investment policy (Mardiyanti, dkk 2012). Similar results were also found by Gill, et al (2011), Guizani and Ezzeddine (2012), Jiang and Comain (2013). These results fit the theory according to Brealey, Myers and Marcus (2008) that, "As investors do not need dividends to convert their shares into cash, they do not will pay a higher price for the company with higher dividend payouts.…”

Section: Effect Of Dividend Policy On Corporate Valuesupporting

confidence: 90%

Implication of Ownership Structure of Dividend Policy and Company Value

Misrah¹,

Ali²,

Laba³

et al. 2018

Scientific Research Journal

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This study aims to develop and analyze the effect of ownership structure on dividend policy and firm value on manufacturing companies listed on Indonesian stock exchanges. The result showed that managerial ownership variable to dividend policy had positive and significant effect of 3,005 with t value 0,617 with standard of error 4,874 at significance level 0,537 and company value equal to 0,048 with value t equal to 1,079 with standard of error (SE) 0.045 at significance level of 0.281. The institutional ownership of the dividend policy had negative effect of-1.497 with the value of t equal to-2.981 with the standard of error 0,502 at significance level 0,003 and at company value equal to 0,064 with t value equal to 2,990 with standard of error 0,21 at significance level 0.003. While dividend policy to firm value have positive and significant effect equal to 0,025 with t value equal to 37,398 with standard of error 0,001 at 0.000 significance level.

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“…Keown (2000) states that a company's dividend policy includes a dividend payout ratio that shows the amount of dividends paid relative to company income and the stability of dividends over time. The results of previous studies regarding the effect of dividend policy on company value were carried out by Ashamu et al (2012), Fenandar and Raharja (2012), Rehman (2016), Guizani, et al (2012), Anton (2016), Nwamaka (2017), Malik, et al (2015), Budagaga (2017), Vidhya and Mohanasundari (2016 ), Winarto (2015), Darmawan (2012), Juhandi, et al (2013) found that dividend policy has a positive effect on firm value.…”

Section: Results Of Studymentioning

confidence: 99%

Capital Structure, Investment Opportunity Set, Dividend Policy and Profitability as a Firm Value Determinants

Sudiani¹,

Wiksuana²

2018

RJOAS

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The purpose of this study was to determine the effect of capital structure, investment opportunity set, dividend policy and profitability on the value of manufacturing companies in the Indonesia Stock Exchange. The populations in this study were all manufacturing companies on the Indonesia Stock Exchange totaling 146 companies in the 2013-2016. The sample determination technique used was purposive sampling, so the final sample obtained was 24 companies incorporated in manufacturing companies on the Indonesia Stock Exchange. The data analysis technique used is multiple linear regression analysis with the help of SPSS 22 for Windows application. Based on the results of the analysis shows that: investment opportunity set, dividend policy, and profitability have an influence on the firm value, while the capital structure does not have an influence on the value of manufacturing companies in the Indonesia Stock Exchange.

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Does the contribution of dividend to firm value depend on controlling shareholders?

Cited by 6 publications

References 39 publications

Value Relevance of Financial and Non-Financial Information to Investor Decision

Value Relevance of Financial and Non-Financial Information to Investor Decision

Implication of Ownership Structure of Dividend Policy and Company Value

Capital Structure, Investment Opportunity Set, Dividend Policy and Profitability as a Firm Value Determinants

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