Study and Analysis of Dividend Policies, Practice and Its Application in Mumbai based Corporate Houses

GIS Business ◽  
2017 ◽  
Vol 12 (3) ◽  
pp. 1-16
Author(s):  
Smita Jape
Keyword(s):  
Dividend Policy ◽  
Statistical Tests ◽  
Market Price ◽  
Share Price ◽  
Factors Affecting ◽  
Dividend Policies ◽  
Price Increases ◽  
Dividend Distribution ◽  
Financial Decision ◽  
The Impact

In the present paper an attempt has been made to study dividend policy of Mumbai based companies of India. The study tries to assess the level of perceived awareness about models and use of dividends policies, analyses the factors affecting dividend distribution decisions and evaluates the impact of the same on the financial decision-making of companies. In addition the paper tries to understand the correlation between size of companies and distribution of dividend policies. The results of the research paper show that a majority of the fifty respondent Companies follow a policy of consistent dividend rate which is influenced by profit after tax, and finally the legal requirements. It is further observed that generous dividend or erratic divided policies are not popular choice among fifty respondent companies. The use of traditional method of dividend policies which suggests that market price increases with declaration of dividend is strong and dominant. Followed by the Modiglani Miller Method which indicates that dividend distribution has no impact on valuation. On the contrary it is found that Investment decisions influence share valuation. This is further followed by Walter Model where impact of dividend on share price depends on the IRR visa-a-vis cost of capital) and Gordon Method in which dividend policy has an impact on share valuation. Statistical tests such as Friedmans ANOVA test, Kruskal-Wallis ANOVA, and, Karl Pearsons Coefficient of Correlation analysis are used for analysis and the validity of the collected data is checked by using Cronbachs alpha.

scholarly journals The Impact of Dividend Policy on the Shareholders Value of Listed Firms in the Nigerian Petroleum Marketing Industry

2019 ◽  
Vol 8 (2S9) ◽  
pp. 902-905
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Market Price ◽  
Study Data ◽  
Annual Reports ◽  
Current Income ◽  
Listed Firms ◽  
Secondary Sources ◽  
Marketing Firms ◽  
The Impact

Dividend policy is directed towards establishing the proportion of current income that should be retained in the firm and the proportion that should be distributed among its shareholders. This study, therefore, assessed the impact of dividend policy on the value of listed firms in the Nigerian petroleum marketing industry. six firms, out of eight that are quoted on the Nigerian Stock Exchange (NSE) were selected as sample for the study. Data were collected from secondary sources. Annual reports and accounts of the selected firms, daily official lists and facts books of the NSE for the period of 2008-2017 form the source of the data. egression was used in analyzing the data. The findings revealed that payment of dividend by petroleum marketing firms in Nigeria positively influence the market price of their shares. Based on these findings, the study concluded that dividend policy of petroleum marketing firms in Nigeria affects the value of the firms. Based on this conclusion, the study recommends that management need to identify the shareholder’s interest in setting up a dividend policy that would balance their needs and retention for recapitalization to maximize value of the firms.

scholarly journals Employee Benefits Accounting, Its Impact on the Market Share Price, the Volume of Credit Facilities and Deposits

2017 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Mohammad Hamdan ◽  
Marie Bany Khaled ◽  
Sakhr Bany Khaled
Keyword(s):  
Market Share ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Employee Benefits ◽  
Share Price ◽  
Economic Statistics ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Descriptive Method

This study aims to examine the impact of employee benefitsaccounting (direct and indirect compensation) on (market price, volume of credit facilities and volume of deposits). The study community is represented by commercialbanks listed on the Amman Stock Exchange (ASE), all the continuous banks whose financial data were available during the study period (2007-2015) were selected represented in (13) banks. In order to realize the objectives of the study, the study was based on qualitative data and analytical descriptive method (Panel Data), (E-Views) economic statistics software was used to test hypotheses. The results of the study showed that there is a statisticallysignificant impact on both typesof employees compensations as a whole (direct and indirect) on the market share price, the volume of credit facilities and the volume of deposits. While the results of the study confirmed that the indirect compensation has not got an impact on the volume of customer deposits when it is measured separately. Finally, the study recommended the need to apply good systems that take into account the interest of both the employers and employees for the positive impact on the market share price, the volume of credit facilities and the volume of deposits.

scholarly journals Relationship between trading volume, stock return and return volatility: A case of Nepalese insurance companies

2019 ◽  
Vol 2 (2) ◽  
pp. 32-41
Author(s):  
Niraj Acharya ◽  
Sumit Pradhan
Keyword(s):  
Firm Size ◽  
Life Insurance ◽  
Market Price ◽  
Investment Strategy ◽  
Share Price ◽  
Insurance Companies ◽  
Return On Assets ◽  
Factors Affecting ◽  
Share Prices ◽  
Price Earnings Ratio

This study examines the factors affecting the share price of Nepalese non-life insurance companies. The knowledge of the factors and their possible impact on share prices is highly appreciable as it would help investors make wise investment decisions and enable firms to enhance their market value. This study is based on secondary data of 15 non-life insurance companies which are listed in Nepal stock exchange. The study covers seven years period from the fiscal year 2011/12 to 2017/18. The result shows that firm size is positively related to market price of share and price earnings ratio. It indicates that larger firm size leads to increase in market price of share and price earnings ratio. However, the study shows that inflation is negatively related to market price of share and price earnings ratio. The study also shows that dividend per share and return on assets are negatively related to the market price of share and price earnings ratio. Similarly, earnings per share have negative relationship with market price of share and price earnings ratio. The study concludes that the increase in return on assets and earnings per shares do not explain the variation in stock price in Nepalese non-life insurance companies. Nepal is one of the emerging economy; the determinants identified may provide knowledge to the potential investors about the key factors affecting share prices in the country and accordingly assist them in optimizing their investment strategy.

scholarly journals Impact of dividend policy on stock price volatility and market value of the firm: evidence from Sri Lankan manufacturing companies

2016 ◽  
Vol 13 (3) ◽  
pp. 219-225 ◽  
Author(s):  
UGVDD Gunarathne ◽  
WAN Priyadarshanie ◽  
SMRK Samarakoon
Keyword(s):  
Dividend Policy ◽  
Negative Impact ◽  
Price Volatility ◽  
Market Value ◽  
Share Price ◽  
Sri Lankan ◽  
Manufacturing Companies ◽  
Dividend Yield ◽  
Dividend Payout ◽  
The Impact

The impact resulted from the dividend policy of a firm on the volatility of the market value of stocks is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned on the maximization of stock holders’ wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context in case of the market value of the firm while being contrary in case of the share price volatility. Accordingly, the firms’ ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.

scholarly journals The Determinants of Corporate Dividend Policy in Poland

Ekonomika ◽  
2019 ◽  
Vol 98 (1) ◽  
pp. 96-110
Author(s):  
Justyna Rój
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Data Availability ◽  
Tobit Regression ◽  
Factors Affecting ◽  
Financial Firms ◽  
Investment Opportunities ◽  
Warsaw Stock Exchange ◽  
The Impact

[full article and abstract in English] The purpose of this research is to examine the factors that determine the dividend policy of non-financial firms listed on the Warsaw Stock Exchange (WSE) in Poland and that of the annually paid dividends. Up to now, many empirical studies related to dividend policy were carried out, showing the differentiation of factors affecting the dividend policy and their interaction. Thus, with this study, it would be possible to give a view on the dividend policy of corporations listed on the WSE for the period from 2008 to 2016. The study covers non-financial companies listed on the WSE in Poland. The Tobit regression is used to identify the impact of factors influencing the companies’ distribution of dividends. The variables that may explain a firm’s dividend decision and that were used in this study are selected based on the theory and available empirical researches and then also determined by data availability. These are profitability, investment opportunities, measures of size, leverage, and liquidity. As a result of this study, the factors that determine the dividend policy of companies were verified in the context of the companies listed on the WSE. Moreover, it indicates which of the existing theories on dividend policy could be applied to the capital markets of Poland. Thus, it provides new insights into the theory of dividend policy.

scholarly journals Taxation and Dividend Payout: The Case of the Republic of Serbia

2021 ◽  
Author(s):  
Biljana Jovković ◽  
Stefan Vržina
Keyword(s):  
Income Tax ◽  
Dividend Policy ◽  
Statistical Tests ◽  
Transition Countries ◽  
Lower Number ◽  
Corporate Income Tax ◽  
Dividend Payout ◽  
The Republic ◽  
The Impact ◽  
Dividend Tax

Research Question: The paper investigates the relationship between taxation and dividend payout decisions of companies in the Republic of Serbia. Motivation: Including taxation in dividend policy discussion may allow for better understanding of decisions of companies to pay dividends. Prior worldwide research results on the impact of taxation on dividend policy are inconclusive, often contradicting and cannot be universally accepted. Despite abundant research in previous decades, the key drivers of dividend policy of companies are still unknown and there exists a so-called dividend puzzle. In addition, the research on dividend policy of companies in transition countries (including the Republic of Serbia) is relatively scarce. On the other hand, research in transition countries is important as transition countries have a significantly lower level of capital market efficiency and liquidity, having a lower number of joint stock companies and a lower number of companies that regularly pay dividends. Idea: Since tax burden may be a significant obstacle for companies to pay dividends, it may be relevant to research into whether corporate income tax burden has an impact on dividend payout ratio of companies, as well as the impact of dividend tax that shareholders have to pay on the dividend payout. Data: The study captured 23 companies listed on the Belgrade Stock Exchange between 2013 and 2018 that paid dividends in at least one year. In total, the research involved 92 dividend payouts. Research data have been retrieved from the Business Registers Agency of the Republic of Serbia. Tools: Research hypotheses are tested using EViews and IBM SPPS software. Statistical methods included descriptive statistics, correlation and regression analysis, as well as non-parametric statistical tests for independent samples. Findings: The analysis shows that corporate income tax does not impact a dividend payout ratio of companies, indicating that companies do not consider the corporate income tax when deciding on dividends, mostly due to the effective tax rates being considerably lower than the statutory tax rate of 15%. Also, statistical tests show that the dividend tax does not impact the dividend payout ratio, as there is no significant difference in the dividend payout ratio between companies whose largest shareholder is high taxed and companies whose largest shareholder is low taxed. Contribution: Research results may be of interest for company management when designing the dividend policy as well as for investors when deciding on shares investment in accordance with their tax preferences.

Investigating the Factors Affecting Consumer Affiliation to Brand

GIS Business ◽  
2019 ◽  
Vol 14 (3) ◽  
pp. 80-95
Author(s):  
Mehranrohanikahrizi ◽  
Saeedsedaghati ◽  
Akrammastandehi
Keyword(s):  
Statistical Tests ◽  
Data Gathering ◽  
Field Studies ◽  
Research Approach ◽  
Statistical Population ◽  
Factors Affecting ◽  
Correlational Research ◽  
Library Studies ◽  
Marketing Activities ◽  
The Impact

Since consumers are the turning point of all marketing activities. Successful marketing begins with the understanding of why and how consumers behave. In today's competitive world, most companies emphasize customer preservation as the key to success. The present study is, in terms of purpose, of applied research type, because the findings The research can be used to solve executive issues. In other words, after performing statistical tests and discussing and concluding, we can examine the factors affecting brand equity. This research is also causally causal due to the nature and research approach because it seeks to investigate the impact between variables. The data gathering method is also a descriptive and correlational research and qualitative data type. The statistical population of this research is Samsung mobile phone customers in Tehran. The most important methods for data collection are this Research is library studies and field studies.

scholarly journals The impact of innate accruals quality on the future market value moderated by dividend policy

2020 ◽  
Vol 5 (2) ◽  
pp. 269-283
Author(s):  
Muljanto Siladjaja ◽  
Yuli Anwar
Keyword(s):  
Growth Rate ◽  
Dividend Policy ◽  
Market Price ◽  
Market Value ◽  
Future Market ◽  
Observation Data ◽  
Constant Growth Rate ◽  
Content Type ◽  
Accruals Quality ◽  
The Impact

PurposeThe purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.Design/methodology/approachThis research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.FindingsThe results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.Research limitations/implicationsThis test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.Originality/valueBy calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

scholarly journals Frustration in Oil Market Price Effect on External Reserves in Nigeria 1970-2017

2021 ◽  
pp. 1-15
Author(s):  
Gerald Chimezie Nwadike ◽  
◽  
Bernard Onwe Chinedu Omogo ◽  
Chukwuma Samuel Alamba ◽  
◽  
...  
Keyword(s):  
Internal Control ◽  
Statistical Tests ◽  
Market Price ◽  
International Market ◽  
Structural Var ◽  
Oil Price ◽  
Oil Market ◽  
Integration Test ◽  
Price Shock ◽  
The Impact

This study examines frustration in oil market price shock effect on external reserves Nigeria 1970-2019. Objectives are; to examine frustration in oil market price shock on the Nigerian external reserves 1970 to 2019 and to ascertain the impact of frustration in oil price on the Nigerian external reserves. The study employed the following advanced econometric techniques; Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests, Structural VAR approach, Choleski decomposition and Imposing Short-run Restrictions test, statistical tests & Co-integration test. Based on the above econometric techniques conducted, it was observed that all the variables used became stationary after the first differences at degree of order one I (I). There is Co-integration (long run relations) among variables used in the study. Our results indicated that oil price does significantly influence shocks on external reserves in Nigeria the period of the study. Furthermore, frustration in oil price does insignificantly have impact on the external reserves in Nigeria from 1970 to 2019. The researcher recommends that; less emphasis of control should be placed on international market oil price since the oil price has 81% influences of international market externalities ‘shock on Nigeria external reserves. Rather, more emphasis should be place on other non-oil sector contributions to Nigeria external reserves since it may has virtually neutral or significant internal control that could lend to positive effect on external reserves in Nigeria. Direct manipulation of cured oil production and supply control policy should be Nigeria interest since Nigeria economy operates system of floating exchange rates

scholarly journals Pengaruh Kebijakan Dividen terhadap Nilai Perusahaan dengan Kebijakan Hutang sebagai Variabel Moderasi

2020 ◽  
Vol 30 (12) ◽  
pp. 3041
Author(s):  
Ida Ayu Santi Dharmastri Laksmi ◽  
I Ketut Budiartha
Keyword(s):  
Firm Value ◽  
Dividend Policy ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Share Price ◽  
Company Value ◽  
Price Increases ◽  
Analysis Technique ◽  
Negative Effect ◽  
Debt Policy

Firm value is defined as market value because firm value is able to provide prosperity for shareholders if the company's share price increases. The purpose of this study is to obtain empirical evidence of dividend policy on firm value and moderation of debt policy on dividend policy on firm value. The study used companies listed on the IDX for the 2016-2018 period with a sample of 37 samples. The analysis technique used is multiple linear regression analysis. Based on the research results, it is known that dividend policy has a negative effect on firm value, debt policy moderates the positive effect of dividend policy on firm value. Dividend policy has succeeded in improving company management. Debt policy can moderate dividend policy, because at the time of distributing dividends the dividend decision is determined by the amount of debt. Keywords: Company Value; Dividend Policy; Debt Policy.

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