Download or read book Institutional Ownership Stability and Dividend Payout Policy written by Surendranath Rakesh Jory and published by . This book was released on 2018 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the link between institutional ownership stability and dividend payout ratio. We find that stable and large institutional owners favour dividend paying companies. There also exists a positive association between ownership persistence and dividend payout. Conversely, firms that change their dividend payout frequently are associated with larger deviations in institutional ownership. Additionally, the presence of pressure-sensitive institutional investors (i.e., investors that also hold business ties with the investee firm) is significantly linked to dividend payout policy. Conversely, pressure-insensitive investors use alternative forms of monitoring instead of requiring investee firms to pay dividends, which serve to reduce agency conflicts.
Download or read book The Impact of Institutional Ownership on Dividends An Agency Theory Based Analysis written by Kiyoung Chang and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study addresses the debate over the relation between institutional ownership and dividend payout through the lens of the agency theory. We hypothesize that only institutional investors with certain traits are likely to monitor and conditioning on firms' financial performance, they will use dividend payout to mitigate the firms' agency problems. We find the following supporting evidence: (1) there is a positive relation between lagged long-term and concentrated institutional ownership and dividend payout ratio; (2) the positive relation is more salient when the firm has high agency costs; and (3) the positive relation is more salient when external monitoring is weak. These findings support the monitoring role of institutional investors and dividend payout as an ad hoc monitoring device. We document the interactions of dividend payout with other monitoring mechanisms that are consistent with the predictions from both outcome and substitution models based on agency theory.
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 Institutional Holdings and Dividend Policy written by Wei Huang and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of two assets that study the institutional holdings and dividend policy. Chapter one studies whether institutional investors' preferences for firms vary by investing style and depend on whether their dividend policy is consistent with needs for funding growth. Chapter two examines the relationship between the industry structure of dividends and the likelihood and level of dividend initiations.
Download or read book Institutional Ownership and Flexibility in Payout Policy written by Imran Haque and published by . This book was released on 2017 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: I study the role of institutional stock ownership in facilitating flexibility in firms' payout policy by examining payout reductions during the financial crisis of 2008-2009. Treating the financial crisis as a systemic, negative shock to firms' access to capital markets, I find that firms with higher institutional holdings were more likely to reduce payout to their shareholders. The payout reduction is overwhelmingly driven by cuts in share repurchases attesting to the flexible nature of share repurchases as documented in the literature. The findings are robust to different measures of institutional ownership. I attempt to further examine the mechanism behind this effect by incorporating several proxies for information asymmetry in my analysis and conclude that the primary driver is the mitigation of information asymmetry brought about by increase in institutional shareholding. However, my findings are not inconsistent with institutional investors reducing agency conflicts between management and shareholders.
Download or read book Institutional Ownership and Dividend Policy written by Lina Zaghloul Bichara and published by . This book was released on 2008 with total page 107 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Institutional Ownership Volatility and Dividends written by Amir Rubin and published by . This book was released on 2008 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effect of a firm's dividend policy on the relation between the levels of institutional ownership and stock return volatility. We find that the sign of the correlation between institutional ownership and volatility depends on the firm's dividend policy: institutional ownership is negatively (positively) related to volatility among non-dividend (dividend) paying stocks. The empirical results are consistent with a tradeoff between institutional preference for low volatility and the tendency of higher levels of institutional ownership to increase volatility through their trading behavior. This result is robust to many control variables and the possible endogeneity of the level of institutional ownership. Supporting our conjecture that institutions herd on dividend signals we find that the correlation between turnover and institutional ownership is higher for dividend paying stocks, and that the positive correlation between turnover and institutional ownership is higher on dividend declaration days. Finally, we also find that the level of institutional ownership drops following an increase in volatility for both dividend payers and non-payers, and that volatility rises following increased institutional ownership for dividend paying stocks.
Download or read book The Link Between Dividend Policy and Institutional Ownership written by Helen Short and published by . This book was released on 2002 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Institutional Ownership on Payout Policy written by Alan D. Crane and published by . This book was released on 2014 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show firms pay more dividends and repurchase more shares when they have higher levels of institutional ownership, even if the institutions are not activist investors. We also find evidence of an effect of institutional ownership on proxy voting, profitability, R&D, and CEO compensation. Our identification strategy relies on an instrument for ownership based on the annual composition of the Russell 1,000 and 2,000 indices. Overall, results support agency models where institutional owners lower the marginal cost of delegated monitoring.
Download or read book Institutional Investors Ownership Stability and Firms Innovation written by Hamid Sakaki and published by . This book was released on 2019 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between various measures of institutional ownership and investee firms' level of innovation as measured by the number of patents and patent citations. We find a direct association between the stability in the equity ownership of institutional investors and their investee firms' level of innovation. Our main finding would serve to reassure managers that they benefit from the support of long-term-oriented institutional investors who adopt a "buy and hold" investment philosophy as opposed to a "trading" philosophy. We also examine the association between the proportion of a firm's equity held by institutional investors and its innovation and find that it relies on the type of the investor. For instance, while there exists a positive association between mutual funds and firm innovation yet, the association is only positive for funds that actively manage their portfolios different from their benchmark index. Next, pressure-sensitive institutional investors' shareholdings are positively correlated with firm innovation; however, it is not necessarily the case for all the pressure-insensitive investors.
Download or read book Determinants of Institutional Ownership written by Deon Strickland and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates whether the tax disadvantage of dividends results in a relation between institutional portfolio allocations and dividend yield. I analyze the holdings of tax-exempt and taxable institutional investors. Controlling for size, performance, and risk, I find that taxable institutional owners prefer low yield stocks while tax-exempt investors do not exhibit a preference for either high or low yield securities. In addition, I find that the magnitude of the stock price reaction to the announcement of a dividend change is negatively related to the ownership level of taxable institutional investors. This evidence is consistent with the hypothesis that firms with greater taxable investor ownership have smaller price reactions to dividend changes because the information in the dividend change is offset by an increase or decrease in dividend yield. These findings are broadly consistent with the existence of tax-induced dividend clienteles.
Download or read book Institutional Ownership Stability and Real Earnings Management written by Hamid Sakaki and published by . This book was released on 2018 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between institutional ownership stability and real earnings management. Our findings indicate that firms held by more stable institutional owners experience lower real activities manipulation by limiting overproduction. We further examine how the stability in the shareholdings of pressure-sensitive and insensitive institutional investors affect target firms' use of real earnings management, respectively. Unlike pressure-sensitive institutional investors, the stability in the share ownership of pressure-insensitive institutional investors (i.e., investment advisors, pension funds and endowments) mitigates target firms' use of real earnings management. Overall, our results are consistent with the view that institutional investors presence acts as a monitor on target firms' use of real earnings manipulation activities.
Download or read book Advances in Pacific Basin Business Economics and Finance written by Cheng-Few Lee and published by Emerald Group Publishing. This book was released on 2017-09-29 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Pacific Basin Business, Economics, and Finance is an annual publication designed to focus on interdisciplinary research in finance, economics, and management. It particularly emphasizes the economic, financial, and management relationships among Pacific Rim countries.
Download or read book Institutional Investors Ownership Stability and Their Investee Firms Equity Mispricing written by Hamid Sakaki and published by . This book was released on 2019 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of institutional investors' equity ownership stability and their investment horizon to determine the impact on their investee firms' equity mispricing. We treat institutional investors as a heterogenous group, i.e., dedicated, transient, or quasi-indexer as defined by Bushee (1998, 2001) since their categorization determines their trading strategy. Higher institutional ownership, higher stability in institutional investors' equity ownership, and institutional investors classified as long-term are all associated with lower equity mispricing at investee firms.
Download or read book Essays on Agency Costs Dividend Policy and Corporate Ownership Structure written by Ravi Jain and published by . This book was released on 1999 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Insider Ownership and Dividend Policy in an Imputation Tax Environment written by Balasingham Balachandran and published by . This book was released on 2017 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Firms are more likely to pay dividends with higher payout ratios in an imputation environment. The effects of profitability and earned/contributed capital mix on the decision to pay dividends and dividend payout are weaker for firms following imputation tax system than traditional tax system. Insider ownership is positively related to the decision to pay dividends and dividend payout and this effect does not vary between traditional and imputation tax systems. Firms with higher foreign institutional ownership are less likely to pay dividends and have lower payout ratios. The study demonstrates the significance of the imputation tax system upon dividend policy.
Download or read book An Examination of Institutional Dividend Clienteles written by Aelee Jun and published by . This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholdings for a sample of forty-nine Australian institutional equity funds show that dividend policy affects institutional holdings. Institutions tend to hold stocks that pay dividends, but among dividend-paying stocks there is no simple preference for stocks with either the highest or lowest dividend yields or dividend payout ratios. We also investigate whether dividend franking status affects institutional ownership. Institutions tend to have a higher ownership in stocks which carry full imputation tax credits compared to stocks which have partial, or zero imputation tax credits.
