International journal of economics and management sciences vol 2, no 5, 2012, pp 01-08 management journals managementjournalsorg the impact of dividend policy on the share price volatility: malaysian construction and material companies zuriawati zakaria¹,. Ahmed 75 2 literature review dividend policy theory is closely tied to the work of miller and modigliani (1961, hereafter m&m) and their dividend policy irrelevance thesis. This paper provides an overview of current dividend and share repurchase policy theory together with a detailed analysis of the results of a recent corporate survey the paper.
Iosr journal of business and management (iosr-jbm) e-issn: 2278-487x, p-issn: 2319-7668 volume 16, issue 1 ver of dividend policy and its importance on market price of share because dividend increase will increase the literature review dividend is important variable in uk market because dividend announcement raises the market value. Dividend policy giving emphasis to the description of the lintner model using historical data for the period 1980 – 2007 of earnings per share and distributed dividends of a. The literature on dividend policy has produced a large body of theoretical and empirical research, especially following the publication of the dividend irrelevance hypothesis of miller and.
3 where: div t is the dividend for the current period, div t-1 is the dividend for the previous period, adj is the adjustment rate div t+1 is the target dividend ratio and eps t is the earning per share for the current period however, from a more recent literature, namely kumar and lee (2001), the authors claimed to. Individual assignment journal critique on dividend policy executive master in business administration 2014 prepared by: mohamad nor bin annuar (2013467872) the first report entitled “dividend policy decisions” by dr gurdeep chawla is a report based on past research that seeks to describe dividend theories, dividend policies and the factors. Dividend policy is a policy that creates a balance between the current dividend and the company's growth in the future, so as to maximize the company's stock price (margaretha, 2005: 142) consideration was led to complicate because the interests of the various parties be accommodated. From the analysis, the result suggest that dividend yield, dividend payout, size, earning volatility, long-term debt on all firms sample have significant impact on the dividend policy and share price volatility which the findings are. The impact of family control on dividend policy: evidence from indonesia simultaneous determination of insider ownership, debt, and dividend policy journal of financial and quantitative analysis, 27, 247-263 johnson, s, boone, p, breach, a & friedman, e (2000a) corporate governance in the asian financial crisis.
Dividend policy of malaysian public listed companies is rigid and sticky as managers are reluctant to cut or avoid omitting dividend even when the performance of the companies is deteriorating. In this section we begin by outlining the four main theories that are traditionally invoked to explain corporate dividend policy: that is, the “bird in hand” theory, the signaling effect theory, the agency theory, and the pecking order theory, which are all closely related to our hypotheses on the role of culture developed below. 46 shrikant panigrahi and yuserrie zainuddin 2 a review of dividend theories the issue of con ict between managers and shareholders has been an important problem to consider in the corporation [16. American journal of industrial and business management, 2015, 5, 311-323 ullah, mr and mahmood, s (2015) banks dividend policy and investment decision as determinants of financing decision: evidence from pakistan american journal of industrial and business management, 5, section 2 is the review of the literature of the existing. Dividend policy under asymmetric information authors christos pantzalis, jung chul park, corporate derivatives use policy and information environment, review of quantitative finance and 14 nicos koussis, spiros h martzoukos, lenos trigeorgis, corporate liquidity and dividend policy under uncertainty, journal of banking & finance.
Abstract this study investigates the possible impact of dividend policy on the value and performance of firms in developing economies the data sample for this study is drawn from 81 firms listed on the nigeria stock exchange during the period 2001 to 2010. Effect of dividend policy on share price performance: a case of listed insurance companies at the nairobi securities exchange, kenya international journal of accounting, finance and risk management. Dividend policy means the practice that management follows in making dividend payout decisions, or in other words, the size and pattern of cash distributions over the time to shareholders. Journal of applied finance & banking, vol 3, no 1, 2013, 123-136 the second section elaborates the literature on dividend payout policy, investment opportunity set and corporate finance third section discusses the 2 literature review dividend policy is a complicated issue which has always been debatable not only the.
Abstract: this paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in nigeria from 1981 – 2014 the objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in nigeria. Explaining dividend policy has been one of the most difficult challenges facing financial economists despite decades of study, we have yet to completely understand the factors that influence dividend policy and the manner in which these factors interact.
Contrary to miller and modigliani [1961 dividend policy, growth, and the valuation of shares journal of business 34, 411–433], payout policy is not irrelevant and investment policy is not the sole determinant of value, even in frictionless markets. Dividend policy is considered an important tool for investors to assess the company’s financial position as they require return on their investment and dividend paying company will certainly attract them. Explain dividend policy this study aimed at analysing the determinants of dividend payout of agricultural firms that were listed on the nairobi securities exchange during the period of 2005 to 2010. Literature review as mentioned before many theories have been propounded to explain dividend decisions and the relationship between dividend policy and the value of a firm modigliani and miller (1958) started a discussion on capital structure and dividend policy presenting the irrelevance theory.