Dividend policy research paper

Dividend policy research paper

The Theory and Practice of Corporate Dividend and Share Repurchase Policy February 6 Liability Strategies Group Introduction This Paper 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 is divided into three sections:File Size: KB Dividend Policy Research Paper professional essay writing service. When you only look for a cheap service, you Dividend Policy Research Paper might end up with a fraudulent website. Along with Dividend Policy Research Paper that, the paper you will be getting will be a pure waste of money and time/10() Feel free Dividend Policy Research Papers to contact them anytime you need via phone, email, and live chat. They will provide you with a detailed answer to each of your Dividend Policy Research Papers questions about the company’s services Dividend Policy Research Papers and prices for papers. Support operators will give advice on how to solve common problems that you may encounter when /10()

To browse Academia, dividend policy research paper. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. Skip to main content. edu no longer supports Internet Explorer. Log In Sign Up. Download Free PDF. Investigating the Relationship between Asymmetric Information and Dividend Policy in Iranian Industrial Companies.

Download PDF. Download Full PDF Package This paper. A short summary of this paper. READ PAPER. Asian Journal of Business Management 5 3 :ISSN: ; e-ISSN: © Maxwell Scientific Organization, Submitted: December 3, Accepted: February 18, Published: June 15, Investigating the Relationship between Asymmetric Information and Dividend Policy in Iranian Industrial Companies 1 Seyedhossein Naslmosavi, 2Mohammadghorban Mehri, 1Mohammed Sangiru Umar dividend policy research paper 1Ibrahim Danjuma 1 Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia 2 Ghorveh Branch, Islamic Azad University, Ghorveh, Iran Abstract: This study aims to examine the relationship between asymmetric information dividend policy research paper dividend policy.

Today, researchers and economists have divided the capital market into two distinct forms: The first one is the Perfect Competition Market. Since in this form of market, the level of knowledge is equal among the market factors, there is no possibility to benefit from obtaining hidden information.

The second type of market is the Imperfect Competition Market in which the market information is not fully available to everyone rather it can be bought and sold like a commodity.

Thus, it gives the chance to those who have more knowledge to gain more profits. Thus, considering the lack of an efficient performance of the capital market, the current study intends to investigate whether there is a significant relationship between asymmetric information and dividend policy.

To do so, among the various components of information asymmetry index, asymmetric information is dividend policy research paper as the difference between forecasted earnings and dividends paid to shareholders in the present study. Among the most influential cases affecting stock dividend policy, the index proposed by Dividend policy research paper and French is used in this study.

Basically, the index includes cases such as the firm size, firm risk, profitability and the percentage of dividend and the ratio of market value to book value. However, this theory could not have a major concept for economists, financial analysts and other impact on the reduction of the level of asymmetric dividend policy research paper. Therefore, to find out the pivotal divided is clearly determined.

Moreover, the division role of information asymmetry on dividend policy, this has no effect on the price of stock trading unit. study examines whether there is relationship between However, the today world markets particularly in Iran asymmetric information and dividend policy. are markets in which the amount of information is not available for public. Thus, investors usually face an Definition of terms: imperfect competition market.

Consequently, the Asymmetric information: Means that the seller investors who are more informed will probably gain the possesses more information about the traded goods than higher profits. As a result, this issue regardless the buyer. dividend policy research paper dividing or non-dividing a company's earnings, Firm size: Is determined by several parameters might have the greatest influence on the company's including the sales value, the assets value and the stock stock price fluctuation.

Considering this issue, market value. economic thinkers such as Allen et al. Based on the model, the the operating results. Corresponding Author: Seyedhossein Naslmosavi, Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Skudai Johor, Malaysia, Tel. Moreover, Rahavard company specific characteristics such as product type, Software is used to discriminate the market risk capital structure, the major shareholders and etc.

from non-systematic derived risk. Percentage of Dividend Scope of the study: The purpose of this study is to In this study, the difference between Earning Per provide evidence on the relationship between Share EPS and Dividends Per Share DPSas asymmetric information and dividend policy of indicators of asymmetric information is achieved industrial companies listed in Tehran Stock Exchange. through Tadbirpardaz Software and World Economy In so doing, the following territories are applied: Newspaper archive.

firm size. Diamond and Diamond Exchange for the five years from to and Verrecchia noted that high quality of accounting information disclosure reduces the Research hypotheses and variables: In this study, information risk information asymmetry between there is one main hypothesis and five sub-hypotheses market participants in financial markets and as a presented as follows: consequence, reduces the cost of equity. accounting information disclosure is reducing the o There is a significant relationship between information asymmetry between management and asymmetric information and the company risk.

external users particularly investors. o There is a significant relationship between Dividend policy has been addressed in numerous asymmetric information and the firm size. However, few studies investigated the o There is a significant relationship between relationship between asymmetric information and asymmetric information and the percentage of dividend. dividend policy. In the following section, the o There is a significant relationship between background of the study and the previous researches asymmetric information and the relative has been summarized.

Li and Zhao in their study profitability ratios. They classified the company own persons into the In the current study, to calculate the firm size based managers, administrative managers, treasury managers, on different available interpretations, the market board of directors, dividend policy research paper, chief executive and chief financial.

The result of their study revealed that the more the level of institutional ownership in the Japanese companies is increase, the lower information asymmetry between managers and other relevant parties will be on the market. Some scholars believe that investors of large institutions are likely to transfer the confidential information acquired from their managers to the other shareholders. However, such monitoring is not acceptable unless the major shareholders maintain their investment for a long time and have enough stock to lessen the problems and to make this monitoring free for the other shareholders.

However, dividend policy research paper, due to the limitation of service indicators, 9 of them have been removed. Dividend policy research paper, the remaining companies were the population of the present study. In this study, sampling has been done using Cochran formula shown in the following. Based on this technique, the sample size should be about 52, however, in this study; to enhance the reliability, 90 companies have been selected to attend the study: Fig.

In 2 addition, descriptive and inferential statistical methods were dividend policy research paper to analyze data. Moreover, Mean, Median × 1. Tadbirpardaz Software. It should be mentioned that Figure 2 presents the histogram Related to market since accessing to the whole data through the relative risk. With respect to the second sub-hypothesis: the software was not possible, the required data has been result of Pearson correlation coefficients in Table 2 gathered through referring directly to the sample illustrates that there is a significant relationship companies and reviewing their financial statements and between asymmetric information and the company risk appendix notes.

Figure 5 indicates the histogram related to profitability, dividend policy research paper. Data analysis and testing main hypotheses: The main Fig.

To answer the above question, regression analysis was applied Table 6 and 7. Initially, the results reveal that three components of dividend policy have a meaningful relationship with asymmetric information. However, on the other hand, the five components of dividend policy are correlated with each other.

Accordingly, regression analysis is used to identify the predictors. Considering the value of R2, which is Fig. Figure 3 indicates the histogram related to firm Considering the t values obtained for each variable size.

regression equation which shows the relationship Figure 4 shows the histogram related to dividend. F-value Sig. to be imposed so that stocks of companies with Hence, based on the results, regression analysis is false information to confuse investors are significant to predict asymmetric information.

Moreover, dividend policy research paper, asymmetric information is correlated with o New investors, who wish to invest in the stock the components of dividend policy.

Consequently, dividend policy research paper, the market, should become familiar with the main hypothesis of this study is confirmed. components affecting stock prices and dividends, dividend policy research paper. period and their stock value in long-term period. This fact demonstrates that the capital market is inefficient. In addition, the investors with useful and timely information so that relationship between asymmetric information and they could take advantage from the information factors effecting on dividend policy such as firm size, dividend policy research paper, obtained from previous years by carefully profitability ratios, non-systematic risk, the ratio of analyzing prior to making decision.

market value to book value and dividend is established o The result of the second sub-hypothesis: Suggest in the present study. This suggests that companies do to the investors to join the shareholders not provide enough information to the capital markets institutional combination in order to gain further and this causes that insider people of companies obtain profits. Therefore, investors in information than the individual investors; as result, the market and those who plan to buy shares or any the investment risk might be minimized.

Allen, F. Bernardo and I. Welch, A theory To forecast earnings per share, financial analysts of dividends based on tax clienteles. sustainability based on the economical status of the Botosan, dividend policy research paper, C. Disclosure level and the cost of company and reducing or increasing the company equity capital. and M. Plumlee, A re- Jiang, L. and J. Kim, Cross-Corporate examination of disclosure level and the expected ownership, information asymmetry and the COEC.

usefulness of accounting performance measures in Dewenter, K. and V. Warther, Dividends, Japan. asymmetric information and agency conflicts: Lang, M. and R. Lundholm,

Dividends and Dividend Policy

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A Research Paper on Impact of Dividend Payout on Shareholders Wealth in Indian Industries 1P.G. Thirumagal and 2S. Vasantha dividend policy on shareholders wealth for 28 companies listed in NSE during to Dividend per share was used as proxy of dividend policy and Feel free Dividend Policy Research Papers to contact them anytime you need via phone, email, and live chat. They will provide you with a detailed answer to each of your Dividend Policy Research Papers questions about the company’s services Dividend Policy Research Papers and prices for papers. Support operators will give advice on how to solve common problems that you may encounter when /10() dividend policy and financial performance relate, and could give them an insight and/or guideline on how to go about certain studies within the confinement of dividend policy. It will serve as a reliable reference for corporate finance managers when at cross road or Cited by: 1