Download or read book Dividend Policy and Its Impact on Shareholders Wealth written by Sujata Kapoor and published by LAP Lambert Academic Publishing. This book was released on 2011-03 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend policy is one of the most complex aspects in finance. Why shareholders like dividends and reward managers paying regular growing dividends is still unanswered. The finance manager's goal is to frame a dividend policy to augment the firm's value. The latter has implications for investors, managers, lenders and stakeholders, expressly the claimholders. This book is an attempt to study the dividend payout patterns, trends, and determinants in rising markets by focusing solely on IT, FMCG and Services sector. It explores the rationale for stable dividend payments by empirically testing the validity of Lintner Model in Indian context. It reviews and identifies the relative value of known determinants and discerns the influence of ownership groups on dividend payout behavior and tries to unfold the liaison amid shareholders' wealth and dividend payout. The contents aid to policy makers and Finance managers to reframe an apt dividend policy by assisting them to study the effects of varied market frictions on firms and claimholders. The readers will get a firm knowledge about factors constantly affecting firms' payout decisions and ownership structure beneficial to shareholders.

Download or read book Dividend Policy written by Ronald C. Lease and published by Harvard Business Review Press. This book was released on 2000 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: With relevant anecdotes, surveys, examples, and research from the financial press, company documents, and academic literature, the book focuses less on mathematics and more on the intuition of share valuation as a function of dividend policy.

Download or read book Dividend Policy written by George Frankfurter and published by Elsevier. This book was released on 2003-06-24 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend Policy provides a comprehensive study of dividend policy. It explores the puzzle presented by dividends: irrational and subject to fashion, yet popular and desirable, they remain a priority among managers, even while perceived as largely symbolic. After exploring the history of dividend payments, from the emergence of the modern corporation to current perspectives, it traces the evolution of academic models on dividend policy. Here the authors review models of symmetric and asymmetric information before analyzing academia's accomplishments in solving the dividend puzzle. Related subjects, such as valuation and wealth distribution, round out the authors' presentation about new ways to think about one of the most intriguing subjects in financial economics. The book is recommended for professors and students in departments of finance and business, corporate finance staff, and financial regulators. The only comprehensive study of dividend policy Covers the historical evolution of dividends and academic research on dividend policy Presents new ways of thinking about dividends and dividend policy

Download or read book Impact of Dividend Policy on Shareholders Wealth written by Shahid Ali and published by . This book was released on 2015 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This current study is aimed at investigation of a relationship between two important segments of investor expectations relating to cash dividends' policy and wealth of shareholders. A number of research attempts have still to find an exact relationship. This study relies on a data that is gathered from sixty eight companies from Karachi Stock Exchange. For some companies the financial year concludes in December while for others in June. The analysis is spread in two categories; in one of the category 37 firms that close their accounts in June are taken for the period 2003 to 2007 whereas in the second category 31 firms are taken which close their accounts in December. The study period for the second category is from year 2004 to 2007. Ordinary least squares and fixed effect model are used to estimate regression equation by taking stock returns as explained variable and dividend payout ratio as explanatory variable. The results of the analysis show that returns have a negative correlation with dividend policy and firm size and have a positive correlation with return on assets, price-earning ratio and growth of the company for the companies with year ended June. For the companies with year ended December returns are negatively correlated with size of the firm, dividend payout ratio, and return on assets. The analysis reveals that OLS Model is not a good model for estimation of returns, but fixed effects model is a good model that can be used for estimation purposes.

Download or read book The Effect of Dividend Policy on Changes in Shareholders Wealth written by Derek Botha and published by . This book was released on 1985 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Payout Policy written by and published by . This book was released on 2007 with total page 83 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book briefly reviews the principal theories of payout policy and dividend policy and summarizes the empirical evidence on these theories. Empirical evidence is equivocal and the search for new explanation for dividends continues.

Download or read book The Impact of Dividend Policy on Shareholders Wealth Based on Agency Cost and Residual Dividend Theory written by Ahmed Abubakar Ahmed Siad and published by . This book was released on 2010 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Dividends and Dividend Policy written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2009-05-04 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividends And Dividend Policy As part of the Robert W. Kolb Series in Finance, Dividends and Dividend Policy aims to be the essential guide to dividends and their impact on shareholder value. Issues concerning dividends and dividend policy have always posed challenges to both academics and professionals. While all the pieces to the dividend puzzle may not be in place yet, the information found here can help you gain a firm understanding of this dynamic discipline. Comprising twenty-eight chapters—contributed by both top academics and financial experts in the field—this well-rounded resource discusses everything from corporate dividend decisions to the role behavioral finance plays in dividend policy. Along the way, you'll gain valuable insights into the history, trends, and determinants of dividends and dividend policy, and discover the different approaches firms are taking when it comes to dividends. Whether you're a seasoned financial professional or just beginning your journey in the world of finance, having a firm understanding of the issues surrounding dividends and dividend policy is now more important than ever. With this book as your guide, you'll be prepared to make the most informed dividend-related decisions possible—even in the most challenging economic conditions. The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals.

Download or read book The Impact of Dividend Policy on Shareholders Wealth A Study of Colombo Stock Exchange CSE in Sri Lanka written by Elangkumaran Periyathampy and published by . This book was released on 2017 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: The impact of firm's dividend policy on shareholders' wealth is an unresolved issue and has been subjected to many empirical discussions within the finance literatures. The objective of the firm is to increase the wealth of its stockholders. The best dividend policy is the one that increases shareholders wealth by the greatest amount. It is therefore necessary, to understand the nature of the relationship between dividend and value of the firm. To the knowledge of the researchers very few studies have attempted to observe the impact of dividend policy on shareholders' wealth in Sri Lanka. In attempt to fill this research gap the present study was initiated to find out the impact of dividend policy on shareholders' wealth from listed companies in the CSE in Sri Lanka during the period from 2005/2006 to 2010/2011. Primary information and secondary data were collected from Colombo Stock Exchange (CSE). The present study used the Person's Product Movement Correlation and descriptive statistics to evaluate the data collected from the twenty companies listed in the CSE. In addition the dividend policy has insignificant impact on share price of the CSE. Outcomes of the study will be useful to the academicians, practitioners, policy makers and investors for making suitable policy formulations for the companies. Further the companies are able to decide a suitable polices in executing their financial decision without harming to the market value of the shares.

Download or read book Dividend Policy and Corporate Governance written by Luis Correia da Silva and published by OUP Oxford. This book was released on 2004-02-26 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividends are not only a signal about a firm's prospects under asymmetric information, but they can also act as a corporate governance device to align the management's interests with those of the shareholders. Dividend Policy and Corporate Governance is the first comprehensive volume on the relationship between dividend policy and corporate governance, and examines in detail empirical studies and current theories. Reviewing the interactions between dividend policy and other corporate governance mechanisms, it compares results for the UK and the US with those for other countries such as France, Germany, and Japan, and provides new empirical evidence on corporate governance in continental Europe and its impact on dividends. Focusing on one of the main representatives of this system, Germany, it highlights major differences between the dividend policies of German firms and those of UK or US firms. Conventional wisdom states that German dividends are lower than UK or US dividends, yet on a published-profits basis the exact converse is true. In addition, the authors demonstrate a link between corporate control structures and dividend payouts, report evidence that the existence of a loss is an additional determinant of dividend changes, and demonstrate that the tax status of the controlling shareholder and the firm's dividend payout are not linked. The conclusions reached in this book have important implications for the current debate on corporate governance, making it invaluable for academics, finance professionals, regulators, and legal advisors.

Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.

Download or read book The Impact of Dividend Payments on Shareholders Wealth written by Johannes de Wet and published by . This book was released on 2013 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: To date, a vast body of research has been established on dividend policy. However, little research has been done on the impact of dividend payments on shareholders' wealth while considering the short- and long-run effects. This study is based on a sample of 46 companies listed on the Johannesburg Securities Exchange (JSE) for the period 1995 to 2010. The Vector error correction model (VECM) was used to describe the short-run and long-run dynamics or the adjustment of the co-intergrated variables toward their equilibrium values. Results indicate that in the long run, dividend yield is positively related to market price per share, while earnings per share do not have a significant impact on the market price per share.

Download or read book Dividend Policy and Shareholders Wealth of Listed Manufacturing Companies in Sri Lanka written by Saseela Balagobei and published by . This book was released on 2020 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: In finance, over the years impact of a firm's dividend policy on shareholders' wealth is an unresolved issue. The main issue of debate revolves around the optimal Dividend payout which is maximizing the Shareholders' wealth of investors. The country's manufacturing sector is enjoying a stronger pace in earnings growth post war in Sri Lanka. Therefore the necessity of manufacturing sector is realized for the country's economical development. This study aims to investigate the impact of dividend policy on shareholders' wealth of listed manufacturing companies in Sri Lanka. The common approach in empirical studies has been to examine the relationship between dividend policy and shareholders' wealth. The sample of this study composed of twelve listed Manufacturing companies in Sri Lanka and period of five years from 2008 to 2012. The required data and information for the study were gathered from published annual reports and hand book of listed companies in CSE. The correlation and regression analysis were used for data analysis. The result of this study reveals that there is a significant relationship between the dividend policy and shareholders' wealth and further dividend per share has a significant impact on shareholders' wealth of listed manufacturing companies in Sri Lanka.

Download or read book Distribution Policy and Creation of Shareholders Wealth written by Ntungufhadzeni Freddy Munzhelele and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend payout decisions remain one of the key functional areas in corporate finance, as it involves the means by which shareholders receive returns on their investments. For many decades, the academic debate on payout decisions has been ongoing as researchers attempted to analyse and explain how these decisions impact on the creation and maximisation of value for shareholders; the fundamental reasons why companies exist. Researchers have not found conclusive answers to put the debate to rest; rather attempts to put together pieces of the dividend dynamics have raised more questions and hence the dividend puzzle. The recognition of share repurchases as payout option (and hence distribution decisions) have made the debate quite complex. The current study, thus sought to contribute to distribution decisions' debate in a number of ways. The study firstly reviewed the extended dividend payout models of Fama and Babiak (1968), and Andres, Betzer, Goergen and Renneboog (2009) thereby adding further explanatory variables and then tested the extended model in the South African setting. The data of 110 sample companies (Panel 1) which were also disaggregated into 85 value companies (Panel 2) and 25 growth companies (Panel 3) was used. The hypotheses were tested using the ordinary least squares (OLS), difference general method of moments (Diff GMM), system generalized method of moments (Sys GMM) and least square dummy variable correction (LSDVC) estimators. The study confirmed results of similar previous researches and also identified further trends relating to South African corporate setting. It was found that companies have target payout ratios which they adjust towards, also managers are reluctant to change (increase) dividends which may have to be cut again later and in their endeavours to create and maximise value, may have to sacrifice paying dividends. These trends are evident more with growth companies. The study secondly, tested the dividend life cycle hypothesis. A sample of 119 companies (Panel 4) were used in this regard, as well as a disaggregated sample of 86 value companies (Panel 5) and 33 growth companies (Panel 6). The hypotheses were tested using the same estimation procedures as mentioned above. The results showed that the dividend life cycle hypothesis is prevalent among South African companies. Specifically, it was observed that the considered companies pursuing growth projects paid less dividends. Furthermore, the growth companies have shown to be more aggressive in their pursuance for growth and hence are able to create more value for shareholders than value companies. Lastly, the study examined the extent to which share repurchases are used as payout option (i.e., payout flexibility), as well as factors that determine the payout flexibility. The sample number of 52 companies (Panel 7) were used in this regard and hypotheses were tested using the OLS, Diff GMM and Sys GMM. The results indicated that there is inherent flexibility of share repurchases over cash dividends; the size of company has negative and significant correlation with payout flexibility. This implies that larger companies pay out a lower fraction of payout as repurchases, and thus evidence of attitude of managers of these companies relatively different from that of smaller ones; and that share repurchases serve both substitute and complementary roles to cash dividends. This evidence collectively makes unique contribution to existing body of knowledge, particularly, for emerging economic settings, and managers will be provided with enhanced decision alternatives in their endeavours to maximise value.

Download or read book Increasing Shareholder Value written by Harold Bierman Jr. and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporations earn incomes and amass wealth. There are many books offering advice how to increase the profitability of corporations by achieving excellence in operations and choosing the correct strategic path. Increasing Shareholder Value: Distribution Policy, A Corporate Finance Challenge is concerned with how the corporation should reward its shareholders after the incomes are earned. Investment decisions, capital structure, and dividend policy must be coordinated so that the well being of the firm's stockholders is considered in the planning process. The corporate planners should realize that the individual investors are also making plans, and the corporation can assist this planning process by making its own financial plans and strategies well known.

Download or read book Do Shareholder Coalitions Modify Dominant Owner s Control The Impact on Dividend Policy written by Félix J. López-Iturriaga and published by . This book was released on 2015 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effect of shareholder coalitions on the corporate payout policy in Spain, a context characterized by the presence of dominant shareholders. Our results show that shareholder coalitions affect payout policy negatively (both for dividends and shares repurchases). This finding suggests that shareholder coalitions serve as an instrument for the dominant shareholder's to extract private benefits. We also find that the relation between the voting rights involved in the coalition and the dominant owner ́s voting rights is negatively related to dividends. This result means that the dominant owner uses the coalition as a mechanism to amplify his or her control over the firm and reduce the cost of expropriation. The results provide new evidence on the effects of corporate control mechanisms on shareholders wealth; this evidence is complementary to the US or UK centered research, where dominant ownership is not as prevalent and, thus, it is more difficult to capture these effects.

Download or read book The Impact of Dividend Payments on Shareholders Wealth written by George A. Mangiero and published by . This book was released on 1988 with total page 98 pages. Available in PDF, EPUB and Kindle. Book excerpt: