Narayanage Jayantha Dewasiri, H. Kent Baker, Y. K. Weerakoon Banda and M. Shanika Hansini Rathnasiri
This chapter provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of…
Abstract
This chapter provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of studies related to the dividend puzzle. Although the analysis reveals mixed evidence involving the theories and determinants of dividend policy, some determinants appear in numerous studies. However, no consensus exists on an optimal dividend to resolve the dividend puzzle, and the authors propose a model to deal with the same. When examining dividend policy, researchers should consider the firm, market, behavior, and other determinants. When making significant dividend or stock decisions, managers and shareholders should also contemplate the factors, interactions, inadequacies, and consequences. Future researchers should strive to take a more comprehensive view when resolving the dividend puzzle. This study provides a current and complete picture of dividend policy's available theories and empirical determinants. Its significant contribution is identifying some of the more consistently essential determinants of dividend policy while proposing a holistic model to address the prevailing dividend dilemma.
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Asad Abbas, Hussein Haruna, Anil Yasin Ar and Danica Radovanović
The 17 Sustainable Development Goals (SDGs) of the United Nations (UN) gained attention, particularly SDG 4 which focuses on quality education. Tecnologico de Monterrey, popularly…
Abstract
The 17 Sustainable Development Goals (SDGs) of the United Nations (UN) gained attention, particularly SDG 4 which focuses on quality education. Tecnologico de Monterrey, popularly known as TEC, is one of the few elite private universities in Mexico that took significant steps to enhance the quality of education amidst the COVID-19 pandemic, in view of students’ career plans. In this empirical research, an online survey was employed to investigate the mediating role of peers’ feedback on team-based learning (TBL) and career planning skills among university students. The study included 86 students from bachelor’s and master’s programmes. IBM SPSS version 26 and PROCESS Macro v 3.5 were used for the quantitative data analysis. The results confirm that peers’ feedback partially mediates the relationship between TBL and the career planning skills of students. This study provides recommendations to university authorities to develop educational policies in-line with SDG 4, thoroughly revise course curricula of the degree programmes offered, and include online learning activities for solving problems in the current world scenario.
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N. Jayantha Dewasiri, Weerakoon Banda Yatiwelle Koralalage, Athambawa Abdul Azeez, P.G.S.A. Jayarathne, Duminda Kuruppuarachchi and V.A. Weerasinghe
The purpose of this paper is to identify the determinants of dividend policy in an emerging and developing market.
Abstract
Purpose
The purpose of this paper is to identify the determinants of dividend policy in an emerging and developing market.
Design/methodology/approach
The study employs a quantitative approach using 191 Sri Lankan firms and 1,337 firm-year observations as the sample. The authors apply a Binary Logistic Regression model to uncover the determinants of the propensity to pay dividends, and a Fixed Effect Panel Regression to investigate the determinants of dividend payout.
Findings
The authors identify past dividend decision, earnings, investment opportunities, profitability, free cash flow (FCF), corporate governance, state ownership, firm size and industry influence as the key determinants of propensity to pay dividends. In addition past dividends, investment opportunities, profitability and dividend premium are identified as the determinants of dividend payout. Moreover, there is a feedback between dividend yield and profitability in one lag and between dividend yield and dividend premium in two lags, as short-term relationships. Hence, past dividend decision or payout, profitability and investment opportunities are a common set of determinants with implications for both propensity to pay dividends and its payout. The findings support theories of dividends such as signaling, outcome, catering, life cycle, FCF and pecking order.
Practical implications
The findings are important for investors, managers and future research. Investors should focus on the determinants identified by our study when making investment decisions whereas managers should practice the same when formulating appropriate dividend policies for their firms. Future research should rely on propensity to pay dividends and its payout simultaneously to promote a theoretical consensus on the dividend determinant puzzle.
Originality/value
This is the first study that investigates determinants of propensity to pay dividends and dividend payout along with short-term relationships in a single study.
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Saide Saide, Endang Siti Astuti, Richardus Eko Indrajit, Rahmat Trialih, Amirah Diniaty, Fitriyana Dewi and Herzavina Herzavina
As prior study offered further general context of knowledge management approach while misplaced more personal behavior development in the context of knowledge sharing practices…
Abstract
Purpose
As prior study offered further general context of knowledge management approach while misplaced more personal behavior development in the context of knowledge sharing practices, this study examined whether and why personal factors predict knowledge sharing practices. This study aims to integrate and analyze indicators such as altruism, grant, interaction ability and knowledge sharing participation to develop a comprehensive behavioral model.
Design/methodology/approach
Structural equation modeling was used to check the research hypotheses framework with 268 samples of eight profit companies in Indonesia, divided into broadcasting, banking and services company.
Findings
The results showed that altruism and interaction ability factors are significantly correlated with knowledge sharing participation. The findings may help companies and workers to initiate knowledge sharing implementation and encourage knowledge sharing in the internal company.
Research limitations/implications
The research focused on profit company in a single province in Indonesia. Further research may extend the study with a focus on non-profit organizations (e.g. academic institutions) and different geographical areas.
Practical implications
Managerial ideally creates standardization or regulation that to encourage participation of workers for transfer their knowledge. In this aspect, the company needs to organize, such as formal/informal training and meeting to make their workers more confident to communicate with each other.
Originality/value
Prior studies explored knowledge sharing behavior in a general sense; this paper examined the phenomenon specifically within the context of broadcasting, banking and services company in Indonesia, then analyzed the potential for a company to enhance their knowledge sharing strategy.
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Visar Hoxha, Dhurata Hoxha and Jehona Hoxha
The purpose of this study is to identify which are the main factors influencing the apartment prices in Prishtina, the capital of Kosovo, during the period 2018–2020. The factors…
Abstract
Purpose
The purpose of this study is to identify which are the main factors influencing the apartment prices in Prishtina, the capital of Kosovo, during the period 2018–2020. The factors identified will be used by real estate developers and investors for better decision-making in apartment investments.
Design/methodology/approach
The research methodology is quantitative. The methodology analyzes 1,468 real estate transaction contracts of apartment buildings using a probability random sampling. The research methodology uses multiple regression analysis to identify whether the research model is significant in predicting apartment prices but also identify which are the main factors that influence the apartment prices in Prishtina, Kosovo.
Findings
The present study finds that location, size, floor, access to road and building quality affect apartment prices in Prishtina, whereas surprisingly access to green spaces and availability of parking spaces have no statistically significant effect on apartment prices in Kosovo.
Research limitations/implications
The study has great implications for the real estate developers in Prishtina, Kosovo showing how to improve their decision-making process in real estate investments to know which characteristics are most valued by investors for investment in new apartment buildings in Prishtina, Kosovo and local authorities in Prishtina, Kosovo to modernize the access to road infrastructure for its inhabitants and adopt building regulations that will enforce strict criteria as far as building quality is concerned.
Originality/value
The study is the first quantitative study that studies the factors influencing the apartment prices in Prishtina, Kosovo.
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Saleh F.A. Khatib, Dewi Fariha Abdullah, Ahmed Elamer and Saddam A. Hazaea
This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the phases of…
Abstract
Purpose
This study aims to provide a comprehensive review of the existing literature on corporate governance (CG) aspects of the Malaysian market. It offers insights into the phases of Malaysian CG, identifies crucial gaps in the literature and outlines an agenda for impending research.
Design/methodology/approach
Following a systematic literature review approach, a final sample of 125 studies from Scopus and Web of Science databases was used in this study. These studies were selected based on quality assessment criteria. Then, the sample literature was evaluated in terms of journals, methodology, theories, modelling, research outcomes and CG characteristics.
Findings
The results show that there is a growing interest among researchers to further explore CG aspects in Malaysia due to the continuous development of the Malaysian CG codes. Likewise, the review reveals that the majority of prior studies are quantitative and were carried out using archived data from non-financial firms. Also, the existing literature has primarily focused on the outcomes of CG, especially firm performance.
Research limitations/implications
Overall, the results show that there is ample room for future research. The present paper identifies a number of methodological problems and concerns, and discusses the implications of these problems, while also providing recommendations for future research. The main caveat is that the authors use scholarly papers published in academic journals only, but this approach offers them with opportunities for considerable further developments.
Originality/value
To the best of the authors’ knowledge, this study contributes to the literature by being the first of its kind to concentrate on the Malaysian context. It provides a comprehensive knowledge assessment of the Malaysian CG research and offers advice regarding improvements in research, policy and practice by identifying possible knowledge gaps. Consequently, this study provides a cohesive story of the past and a road map for future research on Malaysian CG.
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Devendra Kumar Shivshankar Gupta, Mitesh Jayswal and Priyan Kumaran Puliparambil
The purpose of this paper is to examine the factors affecting the dividend policy of knowledge intensive firms (KIFs).
Abstract
Purpose
The purpose of this paper is to examine the factors affecting the dividend policy of knowledge intensive firms (KIFs).
Design/methodology/approach
The study collects data for 86 KIFs listed on the National Stock Exchange (NSE) of India. The Hausman test is applied to choose an appropriate model. Based on the results of the Hausman test, the random effects panel regression method is applied to investigate the determinants of the dividend policy of sampled firms.
Findings
The authors test the effects of six factors on the dividend policy of KIFs, namely, profitability, leverage, free cash flows, firm size, investment and growth opportunities and liquidity. The study found that profitability, free cash flows, liquidity and firm size are significant determinants of the dividend policy of KIFs, while growth and investment opportunities as well as leverage have insignificant effects on the dividend policy of KIFs.
Originality/value
Findings of previous studies on factors affecting dividend policy across various industries cannot be generalized to other industries because of the industry influence on dividend policy. Considering this industry effect on dividends, the present research investigates the dividend policy of KIFs. The KIFs have emerged relatively recently owing to technological advances and remain relatively less explored industry in the context of dividends. Therefore, the paper presents new evidence on the dividend policy of Indian KIFs.
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Geetanjali Pinto and Shailesh Rastogi
This study aims to evaluate the influence of corporate governance index (CGI), ownership concentration (OC) and other features on the dividends of listed Indian pharmaceutical…
Abstract
Purpose
This study aims to evaluate the influence of corporate governance index (CGI), ownership concentration (OC) and other features on the dividends of listed Indian pharmaceutical companies. The other features included are leverage, excess return over cost of equity and stock-market return. This study thus helps to provide more insights on the dividend distribution issues for a shareholder in the challenging and demanding pharma industry, especially when stakes are high.
Design/methodology/approach
The data for all 26 pharmaceutical companies which form part of the NSE NIFTY-500 index for six years (2014–2019) is procured using Centre for Monitoring Indian Economy’s (CMIEs) Prowess database. An eight-pointer scale (unweighted scale) is used to develop the CGI. For OC, this paper considers the proportion of promoters’ shareholding, domestic institutional investors’ shareholding and foreign owners’ shareholding. Both static and dynamic panel data models are used to evaluate the effect of CGI and OC on dividends.
Findings
The panel data analysis depicts that CGI significantly positively influences the dividends of pharmaceutical companies in India. Thus, the authors find support for La Porta et al.’s outcome agency model. The results also reveal that only promoters’ holdings are significantly inversely related to dividends out of the three OC variables used for this study. This discussion implies that family-run pharmaceutical companies in India tend to retain profits instead of distributing dividends.
Research limitations/implications
This study provides two direct insights for policymakers and stakeholders. First, because this study shows that CGI significantly positively influences dividends, corporate governance (CG) is an essential factor for determining dividends. Second, because the results also reveal that OC in the hands of promoters hurts dividends, it implies that the higher the promoter holding, lesser is the dividend distributed by the company. Both these results can be used as a quantitative tool by investors to assess Indian pharmaceutical companies better. However, a similar study could be directed to assess the impact of CGI and OC on dividends of other industries. Moreover, additional variables of CG and OC can also be evaluated in further detail. There is also a need to empirically validate the impact of CG and OC on a company’s performance.
Originality/value
The results are robust and reveal that variation in CGI does impact dividend policy. This aids in confirming that CG is a crucial aspect influencing dividends. The findings also add to the increasing studies across the globe evaluating the influence of CG and OC on dividends.
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Harish Kumar Singla and Pradeepta Kumar Samanta
This paper aims to examine the determinants of the dividend policy of the construction companies in India.
Abstract
Purpose
This paper aims to examine the determinants of the dividend policy of the construction companies in India.
Design/methodology/approach
Data from 2011 to 2016 (six years) of 45 listed construction companies in India are collected, and a strong balanced panel is created. Dividend per share is dependent variable, and profitability, unstable earnings, institutional holding, cash flow, tangibility, liquidity, growth opportunities, age of the firm, life cycle, leverage, size of firm and taxation are explanatory variables. The panel is tested for stationarity and finally fixed and random-effect panel regression model with robust estimation option is performed.
Findings
The random effect model is found fit with an R2 of 62 per cent, and profitability, life cycle and size of the firm show a significant positive effect on dividend payment. Cash flow shows a negative significant relationship, indicating the presence of agency problem. Rest of the variables indicated an insignificant relationship.
Research limitations/implications
The study is carried out on a small sample of 45 companies with data of only six years. Further, there may be behavioral and psychological factors that drive the decision to declare dividend. Those factors have not been considered in present study. Despite considerable efforts, the author could not find more studies specific to the construction sector. Hence, the variables identified in the present study are more generic, even though a few sector-specific studies have been included.
Originality/value
The dividend policy determinants for the construction sector in India are investigated, and a comprehensive model based on 12 explanatory variables is tested to find the drivers of dividend payout in Indian construction companies. From the investor’s point of view, the sector has immense potential in terms of dividend as well as capital appreciation. Therefore, the study can be useful to the investors to understand the drivers of dividend payout in the construction sector. It can also be crucial for companies to create an appropriate dividend policy so as to attract and retain investors. The study contributes significantly to the existing body of knowledge by recommending the salient drivers of dividend payout in the construction sector based on a comprehensive dataset and using robust methodology.
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Ab Halim Tamuri, Mohd Yusof Othman, Jawiah Dakir, Ahmad Munawar Ismail and Zakaria Stapa
The study aims to investigate the students' perceptions on the teaching of Islamic education in the Malaysian secondary schools. The study will also look into the students'…
Abstract
Purpose
The study aims to investigate the students' perceptions on the teaching of Islamic education in the Malaysian secondary schools. The study will also look into the students' attitudes based on their personal self-evaluation as well as to examine the relationship between these two variables.
Design/methodology/approach
The study employs quantitative and survey research design. The instrument used for data collection was a questionnaire which is distributed to samples that were randomly selected in representing the selected population among students of Malaysian secondary schools. The instrument used is a modification of instrument developed by Ab Halim et al., Ahmad Munawar and dan Azhar. The pilot study done shows a high reliability of 0.924 for the assessment of Islamic education teachings and 0.869 for the aspect of Islamic attitudes. 3,262 Form 4 and 6 students from selected schools in Malaysia participated in the study. The data were analyzed to display the frequency, percentage, mean, standard deviation and Pearson's correlation.
Findings
The study revealed a high level of mean on the aspect of students' evaluation on the teaching of Islamic education at their schools. It was also found that the level of students' attitudes was also high, i.e. 4.26. There was a significant relation between the students' perceptions on the teaching of Islamic education and their attitudes (r=0.740, p=0.000).
Practical implications
The implementation of teaching and learning strategies and new approaches are some of important elements in the teaching and learning process of Islamic education. This study shows that the lesson of Islamic education has significant and strong relationship with the students' attitudes in their daily lives. Since the students felt that the lesson of Islamic education was important for them, teachers should improve the lesson on Islamic education by using different types of teaching methods, technique application and motivational approaches. The teaching of Islamic education should not only focus on theoretical aspects but must also emphasize on practical implementation of Islamic knowledge.
Originality/value
This paper describes the religious teaching and learning in schools which has significant relationship with the students' daily attitudes. A new area of research can be conducted to explore the most important factors of teaching and learning that contribute to the students' attitudes development. These findings can also be used by educators to improve the quality of the lessons based on the students' evaluation.