Relationship between Orthodox Finance and Dividend Policy: A Literature Review

Hasan, Fakhrul

doi:10.52962/ipjaf.2021.5.1.122

Cited by 9 publications

(1 citation statement)

References 105 publications

(205 reference statements)

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“…Moreover, the negative relationship between R&D investment and dividend payment, which is the conclusion from traditional finance theories (DeAngelo et al. , 2006; Fama and French, 2002; Hasan, 2021a, b, 2022) may not hold at all the time. For example, Yang et al.…”

Section: Introductionmentioning

confidence: 99%

R&D intensity and firms dividend policy: evidence from BRICS countries

Hasan

Shafique

Das

et al. 2022

JAAR

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PurposeGiven the importance of both research and development (R&D) investments and dividend policy in the growth of firms, this paper examines the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments in the firms from Brazil, Russia, India, China and South Africa (BRICS countries).Design/methodology/approachThis empirical study uses a sample of 22,073 firm year observations from the BRICS countries over a period of 2008–2020 and employs both ordinary least squared (OLS) and system generalized method of moments (GMM) estimation methods. The GMM estimation controls for unobservable heterogeneity and endogeneity and reduces estimation bias.FindingsThe findings indicate that although R&D intensity is negatively related with the cash dividend payments, with the interaction of investor protection and other country-level mechanisms the relationship between R&D intensity and dividend payments becomes positive. The results further show that investor protection has stronger impact on the relationship between R&D intensity and firm cash dividend payments than other selected country-level governance factors.Practical implicationsThe research findings should encourage the policy makers in BRICS countries to strengthen investor protection and enhance quality of their institutions to make a right balance between retaining their growth potential and maintaining the value of the firms.Originality/valueThis is the first study to provide evidence of the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments using the data from BRICS countries.

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Section: Introductionmentioning

confidence: 99%

R&D intensity and firms dividend policy: evidence from BRICS countries

Hasan

Shafique

Das

et al. 2022

JAAR

Self Cite

View full text Add to dashboard Cite

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Exploring the connections: Dividend announcements, stock market returns, and major sporting events

Hasan,

Al-Najjar

2024

Rev Quant Finan Acc

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This study conducts a detailed investigation into the interplay between major sporting events, specifically the ICC Cricket World Cups and FIFA Football World Cups, and their potential impact on the relationship between dividend announcements and stock market returns. Beyond the customary exploration of investor sentiment and its connection to stock market returns, our research thoroughly examines the effects of these significant sports events on the stock market's reaction to dividend announcements. Drawing on extensive FTSE 350 index data spanning January 1990 to December 2021, we employ event study methodology as the primary analytical framework. To bolster the reliability of our findings, we apply the Generalized Method of Moments (GMM) estimation method, addressing potential endogeneity concerns. Our results uncover a distinct pattern—the stock market exhibits a less favourable response to dividend increases announced following England's victories in major sporting events, such as the FIFA Football World Cup and ICC Cricket World Cup, compared to instances where they faced defeat. Additionally, we observe a more negative market response to dividend decreases announced following England's losses in these pivotal sporting events, as opposed to England emerging victorious in these key contests. This research contributes valuable insights into the intricate relationship between sports passion and market dynamics, offering implications for both scholarly discourse and investment strategy formulation.

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Behavioral Risk Preferences and Dividend Changes: Exploring the Linkages with Prospect Theory Through Empirical Analysis

Hasan,

Kayani,

Choudhury

2023

Glob J Flex Syst Manag

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In this research paper we used prospect theory (PT) to analysis the association between risk and dividend changes. We used global index (24 countries index data) data from 2000 to 2021. To improve PT, we suggest a novel alternative to the traditional reference point. Reference was established by tracking dividend growth or declines across sectors. The assumption is that before the end of the period, all the firms’ industrial dividend changes have to be known. In this research we calculated our reference point separately for individual years because the mean of industry dividend changes in the previous year. We utilised GMM estimation for the robustness test and split our sample up by business size, and we used 3 empirical methods (pooled regression, industry regression, and cross-sectional regressions analysis). Using the aforementioned empirical methods, we determined that dividend fluctuations are significantly correlated with a decrease in a company's risk. These findings imply that companies whose dividend changes are more than (less than) their benchmark will take on more (less) risk.

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Relationship between Orthodox Finance and Dividend Policy: A Literature Review

Cited by 9 publications

References 105 publications

R&D intensity and firms dividend policy: evidence from BRICS countries

R&D intensity and firms dividend policy: evidence from BRICS countries

Exploring the connections: Dividend announcements, stock market returns, and major sporting events

Behavioral Risk Preferences and Dividend Changes: Exploring the Linkages with Prospect Theory Through Empirical Analysis

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