The Interactions between the Investment, Financing, and Dividend Decisions of Major U.S. Firms

Pruitt, Stephen W.; Gitman, Lawrence J.

doi:10.1111/j.1540-6288.1991.tb00388.x

Cited by 154 publications

(144 citation statements)

References 14 publications

Supporting

Mentioning

115

Contrasting

Unclassified

Order By: Relevance

“…In his model, the changes in earnings and the expectations regarding the level of earnings determine a firm's dividend policy. Fama and Babiak (1968), Pruitt and Gitman (1991) and Baker and Powell (1999) support Lintner's findings. Skinner and Soltes (2011) examined the relationship between the dividends and earnings quality.…”

Section: Prior Empirical Researches On Determinants Of Dividendssupporting

confidence: 75%

Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

Kuzucu¹

2015

IJBM

View full text Add to dashboard Cite

Dividend policy of firms is one of the most controversial issues of theoretical finance. This paper aims to investigate the firm-level factors influencing the dividend decisions of firms from an emerging market. We examined eight-year panel data for the period from 2006 to 2013 from the Turkish stock market (Borsa Istanbul). The results show that financial leverage, size, growth rate, age, profitability, ownership structure and P/E ratio are statistically significant. The relationship of leverage, growth rate, profitability and family control with dividends is negative, whereas the relationship of size, age and P/E ratio is positive. Therefore, firms with higher debt ratios / growth rates / higher earnings are likely to retain more of their earnings. The empirical evidence from the Turkish stock market shows that the maturity hypothesis proposed by Grullon, Michaely and Swaminathan (2002) best explains the dividend behaviors of firms. Accordingly, as a firm matures, the availability of profitable projects reduces and earnings decrease. As the investment opportunities reduce, the need for resources decreases and the firm increases dividend payouts to shareholders.

show abstract

Section: Prior Empirical Researches On Determinants Of Dividendssupporting

confidence: 75%

Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

Kuzucu¹

2015

IJBM

View full text Add to dashboard Cite

show abstract

“…The research done by Pruitt and Gitman [17] by interviewing various people of the management concerned with the financial decisions of the firm of a large number U.S. of firms and found supporting evidence for the prior literature that the current and past years' profits of the firm are important parameters which influence the dividend decisions of the firm. Another type of finding in this regard is given by Baker and Powell [18] from their research of New York stock Exchange listed firms and found out that the factors influencing dividends are different for different industries and the also the expected level of earnings in the future.…”

Section: Literature Reviewmentioning

confidence: 94%

Dividend Policy and Firm Valuation—A Study of Indian Electrical Equipment Manufacturing Industry

Brahmaiah¹,

Tati²

2017

TEL

View full text Add to dashboard Cite

Dividend policy relevance has been researched extensively, but little consensus has been built from the findings. There are many factors that affect a given firm's dividend policy which can be found in the literature such as risk faced by the firm, cash flow situation of the firm, agency costs etc. According to Bhattacharya (1979) dividend decision of a firm can be seen as a source of signal which shows that profitable firms with good project investment opportunities will pay higher dividends to present themselves distinct from other firms which are having projects with lesser profits. This paper attempts to analyze whether the dividend policy of a firm affects the market value of a firm and the shareholders' wealth. We have set our objective to find out the impact of dividend policy on the shareholders' wealth in the Indian electrical equipment manufacturing industry. For this, we have adopted a sample of dividend paying electrical machinery manufacturing companies listed in Bombay Stock Exchange (BSE). There were totally 439 companies in the industry of electrical machinery manufacturing. Out of them 194 companies were listed in the Bombay Stock Exchange (BSE) and there were 72 companies paying dividends frequently. Therefore the data of these 72 companies were taken into consideration. Our study revealed the empirical evidence with some of the dividend irrelevance theories such as M&M. The results indicate that there is a negative non-linear association between market value of a share and the dividend yields.

show abstract

“…(1986 Literatürde istikrarın, temettü politikasının temel bileşenlerinden biri olduğunu kanıtlayan birçok araştırma olduğu da görülmektedir. Lintner (1956), Pruitt ve Gitman (1991) Ma (2012) araştırma ve geliştirme harcamaları ile teknoloji yoğunluğunun bir işletmenin temettü dağıtma eğilimi üzerinde negatif bir etkiye sahip olduğunu tespit etmiştir.…”

Section: Temettü Politikasını Etkileyen Etkenlere Yönelik Araştırmalarunclassified

Temettü Tahmini ve Borsa İstanbul Sanayi Sektörü Üzerine Bir Araştırma

Arsoy¹,

Yildiz²

2016

Eskişehir Osmangazi Üniversitesi Sosyal Bilimler Dergisi

View full text Add to dashboard Cite

Çalışmanın amacı, Borsa İstanbul (BİST)'da işlem gören sanayi iş-letmelerinin temettü politikasını yönlendiren etkenleri saptamak ve gelecekte yapılacak temettü ödemesini tahmin etmektir. Ça-lışmada Borsa İstanbul (BİST)'da işlem gören 168 sanayi işletme-sinin 2003-2012 yılları arasındaki verileri kullanılarak çoklu doğru-sal regresyon analizi yapılmış, temettü politikasını etkileyen önemli değişkenler saptanmış ve temettü ödemesinin tahmininde kullanılabilecek bir model elde edilmiştir. Çalışma sonucunda elde edilen çoklu doğrusal regresyon modelinin değişken-lere ait geçmiş dönem değerlerini kullanarak, cari dönemde nakit ödenen brüt temettü oranını başarılı şekilde tahmin ettiği görül-müştür. Oluşturulan bu model, Lintner modeli, sinyalizasyon, serbest nakit akışı ve yaşam döngüsü olarak bilinen temettü politikası teorilerini destekleyen sonuçlar ortaya koymuştur. AbstractThe aim of this study is to determine the factors which have an impact on firms' dividend policies and develop a model to predict the dividend payments of industrial firms which are quoted on Borsa Istanbul (BIST). To reach this aim, a multiple linear regression (MLR) analysis was carried out on data collected between 2003 and 2012 from a sample of 168 publicly traded industrial firms on BIST. Important variables affecting the dividend policy was determined and a model that can be used to estimate the dividend payment was composed. As a result it is seen that, by using the past values of variables, the model can predict the gross cash dividend rate paid in the current period, successfully. The revealed results of this model supports existing dividend policy theories like Lintner's model, signaling, free cash flows and life cycle theories .Key Words: Dividend Policy, Borsa Istanbul, Dividend Payout, Cash Dividend Payout Ratio Girişİşletmelerin uzun vadede izleyecekleri temettü dağıtım oranını belirlemek, bu oranı işletmenin piyasa değerini en yüksek düzeye çıkaracak biçimde oluşturmak, elde edilen kârın hissedarlara dağı-tılması veya yatırımlar için işletmede alıkonulması kararlarını vermek, temettü dağıtım politikasının özünü meydana getirmektedir. Yatırımcılar işletmelerin raporladığı finansal verileri güvenilir bulmadıkları için, işletmelerin gelecek performansını değerlendirmede dağıtılan temettüleri temel alan bir yaklaşımı tercih etmektedirler. Bu bağlamda düzenli temettü dağıtan bir işletmeyi, düzensiz temettü dağıtan işletmelere göre daha risksiz ve güvenilir bulan yatırımcılar, temettü dağıtımı istikrarlı olan işletmeleri daha değerli buldukları için, bu işletmelerin hisse değeri diğerlerine göre daha yüksek olabilmektedir.

show abstract

The Interactions between the Investment, Financing, and Dividend Decisions of Major U.S. Firms

Cited by 154 publications

References 14 publications

Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

Dividend Policy and Firm Valuation—A Study of Indian Electrical Equipment Manufacturing Industry

Temettü Tahmini ve Borsa İstanbul Sanayi Sektörü Üzerine Bir Araştırma

Contact Info

Product

Resources

About