The purpose of this study is to identify the determinants of dividend policy in Malaysian financial institutions. Panel data set were constructed from 33 financial institutions in Malaysia for a period of 10 years (2001-2010). The results show a statistically significant positive relationship between dividend policy and profitability, which implies that Malaysian financial institutions distribu...

This paper develops and tests a dynamic, sequential equilibrium model of corporate cash payout policy that endogenizes a firm's dividend initiation decision, and its extreme reluctance to subsequently cut dividends in a sequential equilibrium. After payment of dividends, all excess cash is disgorged via stock repurchases that elicit no price reactions. The theoretical model generates results co...

Publicly listed real estate firms offer an indirect form of real estate investment in Singapore, which are a less restrictive in terms of dividend distribution and asset holding requirements compared to the REITs. Do the dividend policies of these real estate firms differ from those adopted by the US REITs as shown in the earlier findings by Wang, Erickson and Gau (1993) and Bradley, Capozza an...

This article examines whether the dividendpolicy of bank holding companies is used as a signal of their quality. The study found evidence to support the dividend signaling argument-that is, that there is a positive relationship between bank dividendsper share and bank quality rating. Aaiiitionally, an inverse relationship between the dividend payout ratio and bank quality was found. Therefore, ...

In this paper, we investigate if dividend policy is influenced by ownership type. Within the dividend literature, dividends have a signaling role regarding agency costs, such that dividends may diminish insider conflicts (reduce free cash flow) or may be used to extract cash from firms (tunneling effect) – which could be predominant in emerging markets. We expect firms with foreign ownership an...

Effects of dividend policy on corporate financial growth, is a major concern of most entities. Whether dividends have an influence on the value of the firm, is an important question in dividend policy. This study aimed at investigating the effects of dividend policy on financial growth of media firms. The study was conducted in Nairobi at The Nation media Group Headquarters. Respondents were se...

We show that the dividend growth rate implied by the futures market is informative about (i) the expected dividend growth rate and (ii) the expected dividend risk premium. We model the dividend risk premium and explore its implications for the predictability of dividend growth and aggregate stock returns. We show that accounting for the dividend risk premium strengthens the predictability of di...