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Research cash dividends and its influencing factors

Author: Anonymous From: www.yourpaper.net Posted: 2009-07-09 23:07:50 Read:
: Peng Caigen, Zhunai Ping Take A
Paper Keywords: Cash Dividend
Abstract: This study found that the main factors affecting cash dividends on the dividend payout ratio, debt covenants, industry factors, managerial ownership, corporate performance, firm size and other factors; market research for cash dividends reaction was not uniform conclusion .

Research abroad
Lin Tele (Lintner, 1956) target dividend payout ratio of dividend payout ratio in the the earliest cash dividends empirical study explanatory variables to study impact of dividend changes. Concluded that the dividend change reflects management's view of the future prospects, the best dividend policy for steady dividend policy.
Fama (Fama, 1974), LI Hong-zhi (1985), Gelahanmo (Graham, 1985) studied the relationship between dividends and investment, financing, their findings show that the cash dividend and investment policies are independent of each other, support MM dividend policy irrelevant theory. The opposite conclusion (Higgins, 1972) that the cash dividend is a function of investment profits, dividends differences of the different periods due to the different profit and investment demand, his results do not support the dividend irrelevance theory. The Jensen (Jesen, 1976) pointed out that the negative correlation between growth opportunities and the level of cash dividends.
In Easterbrook (Easterbrook, 1984), Kelly (Kalay, 1982) studied the impact of the debt contract for cash dividends, the results show that the high debt the company has more stringent restrictions on the terms, the cash dividend payout ratio; movements of capital structure contract changes will affect the dividend policy, consistent with the predicted results of the valid contract theory.
Demi Zi and Cruz (Dhrymes and Kurz, 1967), the study also shows that industry factors affect the dividend policy. The dividend payout rate of mature industries in emerging industries, public utilities company dividend payment is higher than other industries.
Luoze Fu (Rozeff, 1982) established pursuant to a valid contract theory, agency costs and transaction costs are minimized Decision Model main factors to determine the dividend payout ratio, the study concluded that the company's dividend payout ratio by the agency costs of external financing costs with the company to increase dividends reduce between choice and explain.
The Baker Act Levin and love Man (Baker, Farrelly and Edelman) 1985 questionnaire survey of 562 financial managers issuing dividends to consider the factors found to decide the dividend policy of the four most important factors are: the future earnings expected; much of the past dividends mode; cash reserves; maintain or increase the stock price concerned about. Managers maintain or improve the stock price of the target in the dividend decision to play an important role.
Black and Cisco Scholes (Black and Scholes, 1974) using the relationship between the extension of the capital asset pricing model dividend payout ratio and stock prices. They select the data from 1926 to 1966, the sample is divided into 25 different combinations of test results found that dividend policy does not affect the stock price in accordance with the level of risk coefficient.
Ha Luoni and Si Wali (Aharony and Swary, 1980), to 1963-1976 149 company, the dividend declared earnings declared the time and found that the market reaction to dividend declared surplus declaration reaction significantly, that dividends and earnings figures in terms of management, is an important tool for the future development of information to pass.
The Asquith and Mu Lin (Asquith and Mullins, 1983) selected 168 a dividend from 1964 to 1980 for the first time or after an interval of at least 10 years as a sample, at the same time pay dividends for three consecutive years and dividends The increment of the company as a comparison sample, found that cash dividends larger the scale the greater the share price rose.
Johnson and Jones (Jensen and Johnson, 1995) 1974 to 1989 a total of 268 stocks profits less hair more than 20% of the amplitude of the company as a sample, including 50 suspended events, three to 21 years before and after the company declared changes in financial characteristics, found that corporate earnings in cash dividends less before the decline, but there is an increasing situation after announcement.

Domestic Research
The original red flag (1998) through the analysis of China's special market environment, the use of the modified Jones model, use the Shanghai and Shenzhen stock company data validation may be the cash dividend and the current surplus was a significant positive correlation with the phenomenon of earnings volatility prominent. The largest shareholder tendency to transfer cash dividends in cash.
Zhao Chunguang (2001) for the dividend policy choice dynamics were analyzed. The study sample is selected from the group consisting of A-share listed companies in Shanghai and Shenzhen in the years prior to 1999, the researchers believe that the cash dividend and the asset-liability ratio, stock price, price-earnings ratio, the main business profit growth and whether the allocation of stock-related.
Chen Langnan (2000) with the Shanghai stock market data to test market reaction dividend policy. The finding does not support the cash dividend signaling effect; while the bonus issue, rights issue with signal pass-through effect. The study also found that the combination of each sample for the "good" news, the market reaction of the "bad" news is usually in 3-4 trading days, which is in contradiction with the semi-strong form efficient market.
The Lv Changjiang, Wang Kemin (1999) that the greater the proportion of state-owned shares and legal person shares in the capital of the Company, the stronger the degree of the company's internal control, the lower the level of dividend payment; holding the lower the proportion of state-owned shares and legal person shares, the company self-development and the stronger growth, higher stock dividend payments, the lower level of cash dividend payment. Profitability and dividend payout level of positive correlation. Underperforming companies tend to take a long-term liability to pay the dividend in order to meet the requirements of the shareholders, the stock dividend and the cash dividend payment of some companies from the increase in the company's long-term liabilities, and company profitability.
The literature review study cash dividends, but the current domestic cash dividend literature: the smaller the range and quantity of empirical study of cash dividends of listed companies; emphasis from a profit perspective, there is no
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