Managerial Ability and Dividend Payout Policy during Global Financial Crisis

Xiao, Ming; Sarwar, Bushra; Naheed, Rehana

doi:10.1145/3312662.3312683

Cited by 4 publications

(3 citation statements)

References 14 publications

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“…Results are in support of Lintner (1956) dividend smoothing theory that assume managers with high ability positively affect the dividend payout policy only if they are confident to keep the same level of dividend or increase the dividend in future with the lower level of default risk on their debt obligations (Charitou et al , 2011). These results are in consistency with the findings of Ming et al (2019) that higher ability managers of financially unconstrained and strong balance sheet firms pay higher dividends. Furthermore, Pathan et al (2016) reported that increase in dividend payment by financially constrained firm leads to poorer operating performance than non-financially constrained firms.…”

Section: Resultssupporting

confidence: 92%

How do talented managers view dividend policy? Further evidence from Chinese equity market

Sarwar

Kutan

Xiao

et al. 2019

IJOEM

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Purpose The purpose of this paper is to examine the importance of market imperfection, namely, variation in managerial ability (MA), on dividend policy in China. The authors focus on the Chinese market as it is dominated by state-owned enterprises and test whether the association between MA and dividend policy varies systematically with the degree of state ownership. Design/methodology/approach To measure MA, this study exploits a novel measure developed by Demerjian et al. (2012) to estimate how efficiently manager utilizes firm’s resources. Manager efficiency is defined in terms of output a manager produces based on inputs available within firm. Findings The authors find that relationship between MA and dividend policy is primarily driven by non-state own enterprises compare to state own enterprises, more prevalent for financially unconstrained firms with strong balance sheet and more pronounced under high marketized groups as compare to low marketized groups. These finding are robust under battery of robustness checks. This research adds new insight for the policy makers and investors to pay more attention on MA. Practical implications This research adds new insight for the policy makers and investors to pay more attention on MA. Originality/value This study augments the dividend policy literature by relaxing perfect capital market assumption of Miller and Modigliani, and neo-classic view of firms by incorporating a new novel factor – variation in MA – and applies it to the emerging market of China.

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Section: Resultssupporting

confidence: 92%

How do talented managers view dividend policy? Further evidence from Chinese equity market

Sarwar

Kutan

Xiao

et al. 2019

IJOEM

Self Cite

View full text Add to dashboard Cite

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“…Upper Echelons Theory (Gan, 2019;Yung & Chen, 2018;Huang & Sun, 2017;Andreou et al, 2016;Francis et al, 2016) (Ge et al, 2011) (Demerjian et al, 2012) (Choi et al, 2015) 2017 (Akbari et al, 2018) 2019 (Rahman et al, 2020) (Huang & Sun, 2017) (Gan, 2019;Lee et al, 2018;Habib & Hasan, 2017) (Hessian, 2018) (Demerjian et al, 2013) (Adut et al, 2019 (Magerakis & Tzelepis, 2019;Aliahmadi et al, 2016;Siao & Chou, 2015) (González et al, 2019) Accounting Financial Performance (Ferreira et al, 2019) (Del Gaudio et al, 2020) 2019 (Elamir & Mousa, 2019;Huang et al, 2014) Management of Accounting Disclosure Tone (Mansurov, 2020) (Huang et al, 2014) (Melloni et al, 2017) 2019 (Kang et al, 2017) (Carlsson & Sörenson, 2015) Impression Management (Ataullah et al, 2018) (Huang et al, 2018) (Fisher et al, 2020) Financial Misconduct Allegations 2019 (Campbell et al, 2019;Baginski et al, 2018;Ahmed & Hussainey, 2017) 2 / 3 2016 (Setiawan et al, 2016;Thanatawee, 2013) ( Chowdhury & Rahman, 2019;Ming et al, 2019;…”

Section: / 1 (Hessian 2018)mentioning

confidence: 99%

قیاس تأثیر القدرة الإداریة للمدیرین التنفیذیین على نغمة الإفصاح المحاسبى وسیاسة التوزیعات النقدیة: دلیل تطبیقى من البورصة المصریة

حسين¹

2020

الفکر المحاسبى

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This study aimed to measure the effect of the degree of CEO's managerial ability according to the managerial ability score presented by (Demerjian, et al., 2012), on accounting disclosure tone in financial reporting (which expressed in three different descriptive proxies, 1 st accounting disclosure tone for good news (positive or optimistic tone), 2 nd accounting disclosure tone for bad news (negative or pessimistic tone), and 3 rd accounting disclosure tone for net news), and on cash dividends policy (which measured by three alternative proxies, 1 st the firm's decision to pay cash dividends during the year, 2 nd cash dividends on assets ratio, and 3 rd cash dividends returns), by taking into account 129 non-financial companies' listed in the egyptian stock exchange, over the period of 2014 to 2018. The Binary Logistic Regression Analysis and the Fixed Effects Model (as one of the longitudinal regression models for Panel Data) were adopted to examine the research hypotheses using SPSS (ver.24) and E-Views (ver.10) programs. The research concluded to several findings, most important of which, that the degree of CEO's managerial ability of the companies under study have increased. The study provided statistical evidences of which, having a significant effect of the degree of CEO's managerial ability on accounting disclosure tone in financial reporting, as it was found that there was a positive significant effect of the degree of CEO's managerial ability on accounting disclosure tone for good and net news, and a negative significant effect on accounting disclosure tone for bad news. The study also provided statistical evidences that, a positive significant effect of the degree of CEO's managerial ability on cash dividends on assets ratio, and cash dividends returns, and no significant effect on firm's decision to pay cash dividends during the year.

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“…Despite the growth of the number of studies on firm reputation, there is no consensus on a comprehensive definition of firm reputation. In their study, Ming et al (2019) express that the lack of a comprehensive definition of reputation is the multidisciplinary nature of related studies that causes the topic to be assessed from different views. Each field of study, such as economics, accounting, sociology, and strategy, has a certain definition of reputation.…”

Section: Introductionmentioning

confidence: 99%

A Comparative Analysis of Reputation in Enlisted Firms on the Iraq Stock Exchange

Al-Maliki

2022

JRFM

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This paper aims to assess the impact of ISIS’s presence in Iraq on the reputation of listed firms on the Iraq Stock Exchange. This paper’s method is descriptive–correlational, and the selected sample includes 35 listed firms on the Iraq Stock Exchange during 2014–2019. This study measures the reputation of listed firms on the Iraq Stock Exchange. The presence of ISIS in Iraq is analyzed using a regression model and a dummy variable. Research hypotheses were tested using a multivariate regression model based on panel data. The obtained results show a significant relationship between the presence of ISIS in Iraq and the reputation of listed firms on the Iraq Stock Exchange, which means the presence of ISIS in Iraq has declined listed firms’ reputation on the Iraq Stock Exchange. Since the present study is a pioneer in examining this issue in an emerging economy, especially ISIS’s existence, the current study results may give academia and practitioners a profound insight.

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Managerial Ability and Dividend Payout Policy during Global Financial Crisis

Cited by 4 publications

References 14 publications

How do talented managers view dividend policy? Further evidence from Chinese equity market

How do talented managers view dividend policy? Further evidence from Chinese equity market

قیاس تأثیر القدرة الإداریة للمدیرین التنفیذیین على نغمة الإفصاح المحاسبى وسیاسة التوزیعات النقدیة: دلیل تطبیقى من البورصة المصریة

A Comparative Analysis of Reputation in Enlisted Firms on the Iraq Stock Exchange

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