Accounting
Ibrahim Mallam Fali; Daniel Orsaa Gbegi; Philip Jehu
Abstract
Past studies have presented inconclusive results on the relationship between profitability and firm value, there is a need to take into consideration a moderating variable to strengthen the relationship. This study therefore, introduces dividend policy as moderator to examine its effect on the relationship ...
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Past studies have presented inconclusive results on the relationship between profitability and firm value, there is a need to take into consideration a moderating variable to strengthen the relationship. This study therefore, introduces dividend policy as moderator to examine its effect on the relationship between profitability and firm value of listed deposit money banks in Nigeria. The study adopted the Ex Facto-research design and the study used ten years, from 2012 to 2021. The study's population consisted of 15 listed banks on the floor of the Nigeria Exchange Group, and 12 were selected as study samples after filtering time frame. Secondary data were collected from audited financial report and accounts of the sample banks and the Nigeria Exchange Group's website. STATA was used to analyze the data, and the results revealed a negative direct link between profitability as assessed by return on assets and return on equity and firm value as measured by market value added. Furthermore, a higher dividend policy ratio strengthens the relationship between profitability and firm value. We add evidence that the dividend policy acts as a pure moderator in the banking industry. However, based on the findings, it is suggested that the regulatory authorities develop post-dividend payment legislation that can effectively contribute to the firm's dividend policy decision. The findings highlight the importance of profitability and dividend policy in maximizing corporate value in the banking industry.
Rozita Kheirkhah; Abdorreza Asadi; Ahmad Zendehdel
Volume 4, Issue 12 , December 2017, , Pages 1161-1175
Abstract
The present research is conducted to study the effect of product market power on dividend policy and firms’ dividends. In this regard, 83 firms were selected from 2011-2016. Lerner adjusted index was used as a measure of market power; next, the effect on the dividend policy and dividend was examined ...
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The present research is conducted to study the effect of product market power on dividend policy and firms’ dividends. In this regard, 83 firms were selected from 2011-2016. Lerner adjusted index was used as a measure of market power; next, the effect on the dividend policy and dividend was examined once the effect of control variables (firm size, profitability, growth opportunities, and firm retained earnings) is observed. Research data were analyzed using data paneling and corresponding tests. Research hypotheses were tested using logistic regression for the first research model, and using multivariate linear regression statistical analyses including Chow test, Hausman test, for the second research model, through Eviews9. Research results show that there is a positive significant relationship between market power and firms dividend policy at the probability 95%. In addition, there is also seen a significant relationship between market power and dividend.
Farzan Yahya; Zahiruddin Ghazali
Volume 3, Issue 6 , June 2016, , Pages 354-366
Abstract
This study aims to report the results of an investigation into the effect of accounting and market based performance measures on CEO compensation along with the moderating role of dividend policy. The study has utilized hierarchical multiple regression on a sample of 66 financial companies/banks listed ...
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This study aims to report the results of an investigation into the effect of accounting and market based performance measures on CEO compensation along with the moderating role of dividend policy. The study has utilized hierarchical multiple regression on a sample of 66 financial companies/banks listed on Karachi Stock Exchange (KSE), for a 5-year period (2010-2014). The results indicate that there is positive and significant impact of accounting based measures (operating performance and firm size) on CEO compensation. In case of market-based measures only growth opportunities have significant and positive impact on CEO compensation. Significant negative impact of market share and insignificant effect of market performance on CEO compensation has been revealed. Contrary to agency theory, this study finds that dividend policy is not utilized as a substitute control device. Additionally, dividend policy cannot mitigate agency conflicts in financial sector of Pakistan due to its ineffective role as aligning mechanism. Overall, the results imply that inefficient dividend policy can further distort the pay-performance link.
