Growth opportunities and dividend policy: some evidence on the role of ethnicity in an emerging economy

Abstract

This paper examines the association between growth opportunities and dividend payouts and moderates the relationship between growth opportunities and dividend payouts. Our sample consisted of the Malaysian top 300 public listed companies (in terms of market capitalization) for a period from 2004 to 2011. Based on a specified selection process, the sample contained 1330 firm-year observations, after excluding firms with missing data. This paper finds that growth opportunities is associated with less dividends payouts and that this relationship is weaker for Bumiputera ethnic controlled firms. Furthermore, the results show that this negative association exists only for non-Government Linked Controlled firms

Free Cash Flow, Dividend Policy and Leverage: Do Growth Opportunities Matter? Empirical Evidence From Egyptian Stock Exchange

“…These proxies for dividend policy had been widely used in many prior studies (e.g. Gul, 1998;Stouraitis and Wu, 2004;Mirza and Afza, 2014;Giriate, 2014;Kangarlouei et al, 2014;Subramaniam et al, 2014;Nurul and Iqbal, 2015).…”

“…Setting out dividend policy has always been a subject of controversial debate in literature (Parsian and Koloukhi, 2013;Subramaniam et al, 2014;Giriati, 2015). Prior literature reveals several theoretical perspectives to explain corporate dividend policy; the first theoretical explanation, which relies on signalling theory, suggests that management has more firsthand information about firm's future cash flow than investors do (Ullah et al, 2012) and has incentives to signal that information to the market in order to create credible relationships (Abdelsalam et al, 2008), reduce information asymmetries (Gul, 1998;Ghalandari, 2013;Giriati, 2015) and ensure that their companies have better earnings prospects (Subramaniam et al, 2011;Subramaniam et al, 2014).…”

Kebijakan Dividen Di Bursa Efek Indonesia Pada Perusahaan Kelompok Lq 45

“…Ardestani et al (2013), Subramaniam & Shaiban (2011) menggunakan bentuk rasio keuangan atas dasar nilai pasar (a firm's market value) dan nilai buku (book value). Alasan tersebut sejalan dengan Denis & Igo (2007) yang mengatakan bahwa harga saham dan rasio keuangan menggambarkan expektasi atau propek keuangan di masa yang akan datang sebagai refleksi accounting returns hasil kinerja di masa lalu.…”

“…Sebagai variabel terikat, kebijakan dividen dikonfirmasikan melalui variabel terukur seperti yang dilakukan oleh Ardestani et al (2013), Subramaniam & Shaiban (2011) yaitu dividend pay out ratio.…”

“…Variabel penelitian yang diproksi dengan IOS (investment opportunity set) yang mencerminkan actual dan opportunity investasi yaitu: Earning to price ratio. Tingginya earnings to price ratio memberi indikasi akan besarnya proporsi nilai ekuitas yang merupakan atribut dari aset yang dimiliki secara relatif terhadap pertumbuhan di masa yang akan datang Ardestani et al (2013), Subramaniam & Shaiban (2011) Ukuran Perusahaan merupakan variabel yang dapat menyatakan besarnya suatu ukuran perusahaan. Umumnya ukuran perusahaan di proksi dengan menggunakan indikator total sales, total asset atau rata-rata penjualan.…”