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The debate over the impacts of shareholder value orientation on corporate management has been more intense with the increasing participation of institutional investors in companies' ownership structures. In this context, the purpose of this study is to evaluate the influence of institutional investors' shareholding on the payment of dividends in the oil industry. A regression model was used, estimated with the Generalized Method of Moments. The results indicated that the distribution of dividends is related to the profitability and the leverage of the companies, in addition to the history of distribution to shareholders. In general, the presence of institutional investors did not influence the dividend distribution. However, we observed a large participation of these investors in the ownership structure of companies in the oil and gas sector—the average control of these agents was around 25% in the companies of the sample. This study contributes to the literature regarding the influence of institutional investors on the corporate decisions of nonfinancial companies, being original in the context of the oil industry. [ABSTRACT FROM AUTHOR]

I propose a novel measure to identify family firms based on the number of family links between high-ranking coworkers. Leveraging this measure, I reexamine previous findings in the literature and derive four novel facts: i) Measures of stock ownership misclassify firms with a large family presence. ii) Family-run firms exhibit value stock characteristics, whereas founder-CEO firms display growth stock characteristics. iii) Family-run firms pay lower costs. iv) Family managers behave myopically. I conclude that failing to consider family links can lead to highly misleading results in the study of family firms. [ABSTRACT FROM AUTHOR]

We estimate short-term dividend strip prices from 27 years of S&P 500 index options data (1996-2022). We use option-implied interest rates when estimating strip prices and longer holding period returns to mitigate measurement error. We find that Sharpe ratios for short-term strips are similar to or higher than Sharpe ratios for the market. Short-term strips also have a low market beta and a positive alpha. Over the business cycle, realized term premiums (ie, the difference between market and strip returns) and the term structure of Sharpe ratios move countercyclically, whereas the term structure of alphas moves procyclically. [ABSTRACT FROM AUTHOR]

I show that cash distributions through cash mergers, dividend payments, and stock buybacks are, in principle, similar to investor fund flows in generating demand for investable assets. Abnormal returns on certain assets can be forecasted because delegated investors predictably reinvest cash returns toward certain holdings. Novel measures of stock-level demand constructed using proportional reinvestments by mutual funds predict abnormal returns and issuances in noncash-paying stocks. These results highlight an alternative and substantial source of price fluctuations in the cross section of equities. [ABSTRACT FROM AUTHOR]

We revisit the predictive ability of dividend changes for firms' future earnings and extend the literature by examining the effect of management forecasting ability. Although prior studies have examined the relationship between dividend changes and future earnings, the empirical evidence is mixed. The belief that dividend changes have implications for future earnings depends on the assumption that managers can accurately assess future earnings prospects. In this regard, we posit that the predictive ability of dividends can vary with managers' forecasting ability. Analyzing a large sample of Japanese dividend-paying firms, we find that dividend changes, particularly dividend increases, are positively associated with increases in future earnings. Consistent with our hypothesis, this positive association is more pronounced for firms with high-forecasting ability managers. Our findings support the signaling theory of dividend changes and indicate that management forecasting ability has a moderating effect on the linkage between firms' dividend changes and future earnings. [ABSTRACT FROM AUTHOR]

Purpose: The present study uses a meta-analysis technique to explore the association between corporate governance and dividend policy. The extant literature delivers inconclusive findings on the relationship between corporate governance and dividend policy. Therefore, this study aims to resolve the issues and deliver comprehensive results. Design/methodology/approach: The study involves a meta-analysis of 53 research studies using preferred reporting items for systematic reviews and meta-analyses and population, intervention, comparison, outcome and study design approaches. The paper examines the impact of moderators: corporate governance structure (Anglo-American, communitarian or emerging system) and dividend distribution metrics (dividend over net income, dividend over total assets and absolute amount of dividend/dividend per share). The study involves subgroup analysis and meta-regression analysis to examine the impact of moderators. Findings: The study's results specify that board size and percentage of female directors significantly impact the dividend decisions of the company. In addition, subgroup analysis and meta-regression results demonstrate that dividend measurement proxy moderates the association between corporate governance and dividend policy. Originality/value: Based on the existing literature surveyed, to the best of the authors' knowledge, the current study is the first to conduct a meta-analysis on the relationship between corporate governance and dividend policy. This paper is unique and the first one of its kind (to the best of the authors' knowledge) to cover all these moderating variables under an umbrella and consolidate the results to understand the existing knowledge and direct future research in the area of corporate governance and dividend decisions. [ABSTRACT FROM AUTHOR]

In this paper, we study an optimal dividend payout problem of a firm facing with both diffusion risk and Poisson risk. Mathematically, we need to solve a parabolic variational inequality involving an integro-differential operator with gradient constraint. Assuming the Poisson intensity is less than a given constant $ \lambda_0 $, we prove the existence, uniqueness, and monotonicity of a classical solution to the variational inequality without putting any constraint on the loss distribution function. The properties such as existence and strict monotonicity and the upper bound of the free boundary are also obtained. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between environmental, social, and governance (ESG) activities and dividend policies among non-financial firms. Specifically, it explores how ESG performance influences dividend payout levels, stability, and the likelihood of dividend payments. Using a broad sample of Korean non-financial firms listed on the KOSPI market, we employ multiple regression models and a logit analysis. Our findings reveal three main results. First, high ESG firms tend to pay more dividends than low ESG firms. Second, high ESG firms are more likely to pay dividends than low ESG firms. Third, among the ESG dimensions, environmental (E) and social (S) factors significantly contribute to dividend policies, whereas governance (G) factors have no consistent impact. Overall, these results suggest that ESG activities positively affect Korean firms’ dividend policies, with environmental and social factors playing particularly important roles. [ABSTRACT FROM AUTHOR]

Copyright of FinanzRundschau is the property of De Gruyter and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Deutsches Institut für Wirtschaftsforschung: DIW-Wochenbericht is the property of DIW Berlin and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In recent years, there has been a significant amount of work dedicated to the study of the generalized drawdown process with its extensive applications in insurance and finance. While existing studies have primarily focused on analyzing the associated first passage times, which signal early warnings, the investigation of last passage times should not be overlooked. Last passage times involve knowledge of the future and can thus offer additional insights. This paper aims to fill this gap in the literature by studying the last passage times for the generalized drawdown process with an independent exponential killing and discussing their applications to insurance risk. Our analysis focuses on the Lévy insurance risk processes, for which we derive the Laplace transforms for these random times. Additionally, we obtain new results on the joint distribution of the duration of the drawdown and the surplus level at killing. As applications, we implement our results in the loss-carry-forward tax and dividend models and investigate the valuation of an European digital drawdown option. Detailed numerical examples are presented for illustrative purposes. [ABSTRACT FROM AUTHOR]

This study aims to evaluate how the effect of COVID-19 and cash flows from operating, investing, and financing activities influence stock returns, with dividends acting as a mediator. Data were gathered from the quarterly financial reports of 20 banks listed on the Iraq Stock Exchange between 1 January 2015 and 31 December 2020. Panel data were analysed using ordinary least squares (OLS). Findings revealed that cash flows have a positive impact on stock returns. Additionally, cash flows from operating and investing activities enhanced dividends, while those from financing activities negatively affected them. Although relatively small, both effects were statistically significant at the 5% level. The analysis also showed that cash flows and dividends account for 51% of the variance in stock returns, indicating a positive yet minor relationship. The results demonstrated a weakly significant negative effect of COVID-19 on both the direct relationship between cash flows and stock returns and the direct relationship between dividends and stock returns. Cash flows and dividends positively influenced stock returns during the initial five years; however, the COVID-19 pandemic in 2020 inversely affected this relationship by 4%, which is a relatively minor impact. Consequently, this research suggests that banks should improve their cash flows by increasing deposits and investing cash reserves to boost profits and, in turn, increase stock returns. Moreover, dividend distributions should play a crucial role in investment strategies, as they attract investors, raise stock demand, and help stabilise the Iraq Stock Exchange. [ABSTRACT FROM AUTHOR]

In this study, we extend the existing literature around dividend signaling theory and calendar anomalies by addressing the question of whether calendar anomalies, including Halloween, Turn-of-the-Month (TOM), January, Monday, and Friday effects, have any influence on the relationship between stock returns and dividend announcements. Previous studies have primarily focused on demonstrating the impact of calendar anomalies on overall stock market returns. Our main aim is to investigate whether the Cumulative Abnormal Returns (CARs) associated with dividend announcements made by firms listed in the FTSE 350 index exhibit deviations from the norm due to these calendar anomalies. Our findings reveal a notable asymmetry in the reactions to dividend increase and decrease announcements. Specifically, the timing of dividend increase announcements appears to have no significant effect on their associated CARs. However, dividend decrease announcements made during periods characterized by seasonality exhibit CARs that differ significantly from those observed during normal times. Importantly, these findings remain robust across various alternative economic model specifications, including interaction models, binary models, and GMM estimations. Consequently, our results suggest that calendar anomalies, such as Halloween, January, and Friday effects, play a key role in shaping the association between stock returns and dividend announcements. [ABSTRACT FROM AUTHOR]

This paper proposes a theoretical model based on traditional ICAPM and dividend growth models but with variance-belief formation features such as overextrapolation and sticky expectation to link the macroeconomic uncertainty (MU hereafter) and stock excess returns. We predict a nuanced, possibly negative, intertemporal MU-return trade-off and a negative contemporaneous relationship between the change in MU and excess returns. The empirical analysis utilizing panel data from 46 stock markets validates our model but also reveals the heterogeneity across markets with different economic levels, financial development, and national culture. The impact of MU is amplified during global and country-specific financial crises. In addition, we also suggest that MU indeed is a significant source of realized variance of excess returns in stock markets. [ABSTRACT FROM AUTHOR]

The real growth of the stock market value of firms has increased from close to 0% on average per year between 1958 and 1980, to 5.2% between 1980 and today. This change coincides with the rise of market power and profits, starting in 1980. This paper proposes to decompose the value of firms based on profits (earnings) rather than dividends. Because firms on average pay out only half of profits in dividends, dividends poorly measure firm performance. I decompose the sources of the rise of the value of all publicly traded firms into the following categories: (1) the subjective and risk-free discount factor, (2) expected future profits, and (3) shareholder equity (retained earnings). I find that 20% of the rise is due to the discount factor and 80% is due to profits (45% current and future expected profits; 35% retained earnings). I build a general equilibrium model of the economy where firms have market power; I perform counterfactuals and evaluate the welfare implications. The objective is to study the impact of competition policy. If market power today dropped to the level of 1980, average stock market values would be 45% lower. Instead, if market power had never increased in 1980, the average stock values would be 80% lower. [ABSTRACT FROM AUTHOR]

Financial mutual funds invest in stocks of financial institutions like banks, brokerages, asset management, fintech, etc. These funds also pay regular dividends to investors. Therefore, they are attractive to investors looking to diversify into the financial sector or searching for yield or dividends. We evaluate the performance of all Financial mutual funds from 1990 to 2023 and compare them to US stocks, dividend stocks, and international stocks. We find that Financial mutual funds had higher absolute returns and risk than the other three portfolios. As far as risk-adjusted performance, Financial mutual funds underperformed US and dividend stocks but outperformed international stocks. Financial fund managers do not have any market timing or selectivity. The Financial sector is also cyclical. Therefore, we also compute the performance of these categories during the three major recessions: the 2000 dot-com crash, the 2007 financial crash, and the 2020 Covid-19 crash. Financial funds performed better during the 2000 dot-com crash, but they lost more value during the 2007 financial crash and the 2020 Covid-19 crash, than the other three portfolios. [ABSTRACT FROM AUTHOR]

This article focuses on the classic optimal dividend and reinsurance problems. Different from the existing literature, it assumes that the insurance company has two lines of business with a common shock dependence. It can purchase proportional reinsurance to reduce business risk and pay dividends to stay competitive. The goal is to find out the optimal dividend and reinsurance strategies for maximizing the company's value. Under the diffusion approximation model, we decomposed the problem into several situations and gave the corresponding solutions by using the stochastic control method. Some numerical examples and economic explanations are presented to illustrate the results. [ABSTRACT FROM AUTHOR]

Dividend policy is a decision regarding the profit earned by the company which is distributed to shareholders as dividends or retained in the form of profit for future investment payments. This study aims to empirically analyze the effect of profitability, leverage, and company growth on dividend policy. The population of this research is the main board index companies and development boards listed on the IndonesiaStock Exchange for the 2018-2022 period. The sample selection used purposive sampling technique so that a sample of 30 companies. The data analysis technique used in the study was multiple linear regression test. The results of this study indicate that profitability has a positive effect on dividend policy, leverage has a positive effect on dividend policy, and company growth has a negative effect on dividendpolicy. [ABSTRACT FROM AUTHOR]

The article discusses the historical evolution of Corporate Social Responsibility (CSR) and its connection to Environmental, Social, and Governance (ESG) considerations. It highlights the ongoing debate on how companies can be sustainable and responsible for the benefit of business and society. The text also explores the different theories of the corporation throughout history, emphasizing the importance of CSR and ESG in the long-term relationship between companies, stakeholders, society, and nature. [Extracted from the article]

The concept of shareholders' equity is fundamental in both company law and financial reporting standards. In continental European countries and Japan, these legislations have traditionally shared common principles by limiting the source of distribution to shareholders to the accumulated profits a company has earned. As the purposes of financial accounting have progressed towards decision usefulness for investors, however, the link between accounting and statutory distribution restriction has been undermined. Our research addresses the treatment of shareholders' equity in Japan based on legal primary sources and related literature. Its purpose is to explain the divergence between financial reporting and dividend restrictions in light of their contrasting objectives. Our findings provide two main implications. First, reconciling financial reporting and dividend restriction requires a complex recalculation of distributable profits. The regulation has become too complex to ensure all the companies easily comply with dividend distribution restrictions. Second, the underlying definitions of equity items and their presentation in financial statements have remained consistent between the Companies Act provisions and the accounting standards even after converging with the IFRS. This has been achieved by splitting the concept of shareholders' equity from net assets in financial accounting. [ABSTRACT FROM AUTHOR]

German GAAP can be categorized as typical Continental European (Fülbier, R. U., C. Pelger, E. M. Kuntner, and M. Bravidor. 2017. "The Role and Current Status of IFRS in the Completion of National Accounting Rules – Evidence from Austria and Germany." Accounting in Europe 14 (1–2): 13–28; Nair, R. D., and W. G. Frank. 1980. "The Impact of Disclosure and Measurement Practices on International Accounting Classifications." The Accounting Review 55 (3): 426–50) with a primary focus on creditor protection by means of a strong prudence (or conservatism) principle and the priority of the profit (dividend) determination function compared to the information function of financial statements. The increasing internationalization of German companies lead to a questioning of German GAAP and, ultimately, the introduction of IFRS. IFRS became not only mandatory for consolidated financial statements of listed companies but influenced German GAAP as such. Indeed, some elements in German GAAP were more aligned over time with some IFRS features to improve information quality of German GAAP financial statements. To adapt capital maintenance to these new elements and maintain a strong creditor protection, specific dividend distribution restrictions were introduced. The purpose of this paper is to provide a general presentation of the important features of capital maintenance in Germany with a particular focus on the accounting-induced specific dividend distribution restrictions. [ABSTRACT FROM AUTHOR]

In the last two decades new forms of distributions to shareholders such as share buybacks have found their way in standard dividend distribution policies of companies. Also, accounting rules have evolved and refer nowadays more to fair value consideration (for example in IFRS) which leads to an increased recognition of unrealised profits in distributable profits. The European Law Institute (ELI) recommendations (Biondi, Yuri, Colin Haslam and Corrado Malberti. 2025. "ELI Guidance on Company Capital and Financial Accounting for Corporate Sustainability." Accounting, Economics, and Law: A Convivium 15 (s1): s21–88.) propose to modernise European company law regarding distributions, equity capital maintenance, and non-distributable reserves. The aim of the ELI recommendations is to ensure that payments made to shareholders, primarily in the form of dividends but also share buybacks, do not worsen the financial situation of companies and, therefore, endanger their continuity and resilience through time and circumstances, undermining their long-term capacity to cope with social and environmental commitments. We provide illustrative examples for eight ELI recommendations: restricting the dividend distribution of share premiums, stricter legal reserve requirements, the setting up of non-distributable reserves for gains from certain accounting measurements, for current value measurement of provisions, for capitalized development costs, for equity method holding gains, for held own-shares, and for goodwill. Our numerical examples show how the application of the ELI recommendations limits distributable profits and, therefore, contributes to sustain a sound financial situation of companies. [ABSTRACT FROM AUTHOR]

This paper aims to outline the current regulatory framework of accounting for dividend distributions in France, with a view over its evolution since 1957. After briefly presenting the accounting regulatory sources of dividend distribution in France, our case study focuses on the dividend distribution restrictions that originate from two main matters, as in most EU member states: – Recognition of unrealised gains in the financial statements. – Carrying out of capital transactions impacting company equity: increase in capital, share buy-back, merger and acquisitions. Two findings are especially noteworthy. First, French regulations require restrictions on dividend distribution for the optional accounting treatments mentioned by the 2013 EU Accounting Directive and for which this directive recommends Member States to require those restrictions. Furthermore, in line with EU regulations, French regulations are silent on the distribution of dividends from unrealised profits or reserves arising from the recognition of goodwill in the individual accounts, the recognition of a deferred tax asset and the recognition of a share premium. [ABSTRACT FROM AUTHOR]

A significant principle in evaluating a company's sustainability is the going concern principle, which assesses its ability to continue with its operations for the foreseeable future. Thus, adequate financial position and profitable business operations are preconditions for fulfilling going concern requirements, which leads to a prudent company's capital management. However, this is insufficient for capital sustainability, considering that aggressive dividend policies lead to decreased capital. National laws and regulations play a significant role in preserving paid-in and accumulating earned capital, especially those regulations related to companies' legal systems and accounting practices. This article provides a comprehensive overview of the Croatian legal system regarding the main aspects of regulations on dividend distributions on the one side and accounting recognition and measuring policies related to paid-in and earned capital on the other side. The results are beneficiary for the objectives of the ELI project Guidance on Company Capital and Financial Accounting for Corporate Sustainability related to "restating and modernising well-established provisions of European company law on: (i) distributions; (ii) equity capital maintenance; and (iii) non-distributable reserves, with a view to fostering and facilitating sustainable business conduct through responsible company capital management and financial accounting adjustments". [ABSTRACT FROM AUTHOR]

The adoption of IFRS by the EU has raised issues about its economic consequences in terms of, among others, volatility of corporate profits, taxation of profit and distribution of dividends. Indeed, it has brought the interactions between legal rules for dividend distribution and accounting policies back into focus. The EU company and accounting regulations are based on capital maintenance rules that involve limitations on dividend distribution when certain accounting policies are implemented in individual financial statements under local GAAP. However, while a majority of member states permit IFRS for individual financial statements, the EU regulations are silent on this issue. In this article, we outline an in-depth analysis on legal dividend distribution rules interactions with accounting policies in European countries, whether local GAAP or IFRS are applied. We have selected nine cases of potential recognition of unrealised gains in individual financial statements under local GAAP and/or IFRS, some of which are already specified in the EU regulations. For each case, we have analysed the national accounting regulations and the corporate laws. Our analysis reveals that the limitations on dividend distributions recommended by the EU have been most largely implemented in the national regulations, but not in all countries. It also sheds light on potential loopholes in the current European regulation regarding unrealised gains that may be more systematically recognised under IFRS than under local GAAP: unrealised gains arising from the recognition of deferred tax assets and unrealised gains arising from benefit pensions plan. To fill these gaps in the national regulations and to harmonise the legal basis for dividend distribution better within the EU, we suggest including in the European regulation the concept of 'realised profits' and thus 'distributable profits' as a required basis for dividend distribution. It involves in the first place identifying relevant criteria that may enable disentangling realised and unrealised profits or losses. [ABSTRACT FROM AUTHOR]

As a new type of financial service, supply chain finance closely relates to the production and innovation behaviors of micro-size enterprises. This research thus explores whether and how supply chain finance affects corporate technological innovation. Using a sample of China's A-share listed companies from 2013 to 2020, the results show that (1) supply chain finance significantly enhances the technological innovation of enterprises; (2) the beneficial effect of supply chain finance on enterprises' cooperative innovation is more pronounced compared to that on independent innovation; (3) mechanism tests find that supply chain finance promotes enterprise innovation by alleviating financing constraints and adjusting supply chain relationships; and (4) this promotion effect is stronger for private enterprises, small-scale enterprises, in west regions, and for regions with a high level of digital financial development. Our empirical results thus enrich the literature, provide insights into the optimization of supply chain finance development, and can help improve the financial regulatory framework. [ABSTRACT FROM AUTHOR]

This paper analyzes the possibility of creating worker cooperatives in which members are paid not through wages but through dividends calculated on the organization's residual income, as stipulated by the economic theory of the labor-managed firm. It is shown how dividends paid to members can be linked to the value of their financial participation in the capital of the cooperative. In the presence of a financial market, cooperative shares would be issued and allocated to both members and non-member outside investors, thus addressing the problem of the under-capitalization of worker cooperatives. It is hypothesized that the strong financial incentives of this type of capital structure, together with involvement in the democratic governance of the cooperative, peer pressure, and other horizontal monitoring mechanisms, would support members' intrinsic motivation to work and help overcome the problem of free-riding in the labor process. Flexible economic and financial structure in the absence of fixed wages would promote job stability, as already observed in existing worker cooperatives. [ABSTRACT FROM AUTHOR]

This Essay introduces a novel private ordering solution to facilitate corporate investments in pro-social and environmental initiatives: Green dividends. Green dividends are an optional increase in shareholder dividends that are returned to the company to be reinvested in environmental initiatives or kept by a shareholder. Green dividends pose an alternative to the current gridlocked debate that corporations can’t, won’t, shouldn’t, and shouldn’t even try to act in pro-social or environmental ways. Turning the common refrains on their head converts each narrative into an element for a successful private ordering solution: authority, accountability, shareholder buy-in, and government-backed enforcement. With Green dividends, shareholder voting establishes board authority to act and shareholder consent. Shareholder voting rules import securities laws’ mandate of complete and truthful information backed up by private rights of action. This Essay maps Green dividends—first used in Germany—to U.S. corporate law and identifies Green dividends’ potential benefits and pitfalls. The Essay concludes with an extension of Green dividends but acknowledges that Green dividends will not facilitate all pro-social and environmental corporate investments. Green dividends are a tool in a growing toolkit that corporations can continue to expand with private ordering. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the effect of dividend policy on firm value for financial sector in an emerging country. Furthermore, it examines the moderating effect of IFRS adoption and the abolishment of mandatory dividend payment policy with considering the Lintner model of dividend smoothing. Design/methodology/approach: Data were collected from 111 firms listed on Borsa Istanbul in the financial sector in Turkey over 1995–2017. Using an explanatory research design, this study performs various multivariate regression techniques to investigate the proposed relationships. Findings: The outcomes demonstrate a positive and significant association between dividend policy and firm value. In addition, the relationship has strengthened after IFRS adoption, indicating that accounting information such as dividend-based ratios prepared under IFRS is more value relevant. The empirical outcomes supported the Lintner model, which is persistent with the signalling hypothesis. Moreover, the findings state that the abolishment of mandatory dividend payment in 2009 strengthened the association between dividend policy and firm value for financial institutions in Turkey. Practical implications: These results provide an insight to the investors and managers that the effect of IFRS adoption and other policy changes could be greater on the association between dividend policy and firm value. The study empirically tests Lintner model of dividend smoothing for financial firms in an emerging economy. Originality/value: This study contributes to the literature through providing vital insights on the relationship between dividend policy and firm value and empirically revisiting the Lintner model for financial sector in a developing economy, specifically Turkey. Furthermore, it addresses the influence of IFRS implementation on the association between dividend policy and firm value. These findings are robust to alternative sampling methods and to controlling for other factors which influence firm value. [ABSTRACT FROM AUTHOR]

We study the role of state controlling shareholders in corporate payout policy. The State Capital Operation Program in China requires parent central state-owned enterprises (CSOEs) to contribute part of their consolidated income to a new fiscal fund. We find that listed CSOEs, partially controlled by parent CSOEs, experience significant reductions in dividend payouts as the income-contribution ratio increases. The dividend reductions are concurrent with increases in intragroup resource transfers— listed CSOEs' loans to, and commercial trades with, group peers. The program yields adverse consequences for listed CSOEs' investment and employment, yet being mitigated by group-level dividend reductions. [ABSTRACT FROM AUTHOR]

For a firm that cannot raise external funds, cash on hand serves as precautionary saving. We derive a closed-form expression for the target level of cash on hand in the presence of persistent cash flows. Contrary to conventional wisdom, a mean-preserving increase in the volatility of cash flow can decrease this target. Over the set of admissible parameter values, the average impact of volatility on the target is zero. Endogenous selection, reflecting termination of firms that run out of cash, leads to a positive average impact of volatility on the target level of cash, consistent with empirical findings. [ABSTRACT FROM AUTHOR]

Corporations have accumulated record amounts of cash. We study whether firms' cash retention has been excessive by examining a Korean reform that introduced a new tax on earnings retained as cash. Difference-in-differences tests show that treated firms reduce cash retention and instead increase payouts and investments. Market participants react favorably to the reform, consistent with excessive cash retention. The valuation effects and the alternative uses of the cash are associated with behavioral and agency frictions. Firms that are more subject to behavioral biases increase payouts and experience higher valuations, while poorly governed firms allocate more to investment and experience relatively lower valuations. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Purpose: The study aims to analyze the dividend policy of selected public companies from the manufacturing industry in Bulgaria in order to identify the main features and trends of this policy. Design/Methodology/Approach: To achieve the goal of the study, the following were used: descriptive analysis, synthesis and comparative analysis. Data for selected companies traded on the Bulgarian Stock Exchange for the period 2014-2023 were used. Findings: The majority of the companies from the manufacturing industry in Bulgaria which are classified in the sector of industrial goods and materials have never paid cash dividends during the analyzed ten-year period. Of these public companies, 40% of companies that paid cash dividends during the period under review (including those that did so only once) did so in every year of the period. Only half of the companies analyzed paid cash dividends regularly throughout the entire period analyzed while maintaining a consistent dividend policy. The majority of the companies surveyed maintained or even increased the size of dividends for the pandemic years 2020 and 2021. Practical Implications: The results of the study on the practice and specific features of the dividend policy of companies from the Bulgarian manufacturing industry can be of use to analysts and investors. Originality/Value: The study of the dividend policy of companies from a particular sector of the economy adds new analyses to the existing literature in the field of dividend policy. Paper Type: Research Paper

The article studies acute transformations of today’s stock market in Russia connected with the objective necessity of its sovereignization and redomiciliation of shares of Russian issuers. Specific features of these processes, risks and trends were identified and authors’ characteristics of factors that can affect the stock market dynamics were provided. The risk of prolonged keeping of a high key interest rate is marked as a principle one, while its impact has not so far brought serious results for inflation rate curbing, it influences the rise in interest rates on corporate borrowing market. A new interpretation of Russian share market and key interest rate movement was put forward, as well as characteristics of their interconnection proceeding from behavior grounds of home investors. All aspects of redomiciliation of shares of Russian issuers were analyzed as a key trend in sovereignization of home stock market. Participants’ interests in the process of redomiciliation were specified and risks of its impact on price trends on Russian share market were highlighted. The influence of redomiciliation on dividend history of home share market was analyzed. Special attention was paid to underestimation of home share market and possible impact of redomiciliation on dynamics of market share evaluation. According to the authors, shaping the sector of highly technological company shares is a stable trend in sovereignization of home stock market.

Purpose: Unexpected circumstances, like distress or bankruptcy, might impact the time or amount of dividends delivered to investors. Therefore, in the current study, we have attempted to reveal the impact of financial distress (FD) on the dividend decisions of firms working in India. Methodology: In this study, we looked at secondary data from 78 non-finance firms working in different sectors of the Indian economy that had been collected over five years (2016–2020). Panel data analysis (PDA) determines the relationship between the impact of FD and corporate dividend decisions. Findings: FD has no significant influence on the enterprises' dividend decisions. The association between FD and dividend decisions has also been found to be strongly and positively impacted by one of the interaction variables, environmental, social, and governance. Limitation: One study constraint is that researchers may choose to conduct their research in different industries or areas. Furthermore, researchers may choose to include other factors as interaction terms that they believe are relevant to the domains of FD or dividends. Implication: They will be inspired to start effectively managing their finances and debts due to this education. Comprehending these dynamics can aid decision-makers in financial uncertainty and support long-term sustainable value creation for investors, management, and policymakers when making dividend decisions. Originality: This scholarly work is novel because of the way its variables are combined, especially the way it looks at how four moderators—PBIT, ESG, LII, and debt ratio, interact with one another. To the best of our knowledge, this specific combination has not yet been studied in the literature, which emphasizes the originality of our research. [ABSTRACT FROM AUTHOR]

• This study shows the importance of non-financial corporates' retention rate in both short-run debt-led and debt-burdened conditions and how it influences the dynamics of the long-run debt cycle. • In the debt-led demand regime, the driver of the cycle is the return on dividends, leading to a higher share price and consumption out of wealth. In addition, debt-led growth without investment raises questions about the sustainability of such capitalism. • The stagnation in the debt-burdened demand regime can be transformed into a stable cyclical growth when the autonomous investment level is sufficiently high. • The paradox of the debt cycle conditioned with sufficiently high animal spirits is a long-wage growth cycle affected by changes in institutional behavior, such as corporate governance and nonfinancial firms' animal spirits. To study the variety of financialized capitalism contingent on firms' institutional behavior, we model the US type of shareholder-oriented capitalism with the Minskyan cycle and the Japanese type of partially fledged financialized capitalism with high firm retention rates using the paradox of debt (Steindl) cycle. The results show: 1) instability could arise when firms have a high retention rate of profit to deleverage; 2) the debt-led and the debt-burdened demand regimes can be distinguished by setting sufficiently low retention rates for the former and that of high rates for the latter; 3) the level of retention rate is important in determining the short-run condition but also sets the condition of the long-run Minsky or Steindl debt cycle while we observe secular stagnation in the accumulation rate; 4) the debt-burdened demand transforms into a long-wave cyclical growth with sufficiently high firms' animal spirits, which exhibits the possibility of demand-led cyclical growth. [ABSTRACT FROM AUTHOR]

In cloud environment, designing the efficient outsourced calculation protocols to serve the machine learning or data mining is a hot topic. At the same time, homomorphic encryption allows operations on encrypted data, and is a natural primitive to implement outsourced computation. Most existing protocols consider all operands being secret data. While in practice, the operations may occur between public data and private data since some of them is publicly known to all, and only partial data is confidential. To address the partially encrypted computation, it is necessary to design new protocols. In this paper, we consider the integer division calculation and design two protocols based on the partial homomorphic encryption, one of which caters to the division with public divisor and private dividend, and the other caters to the division with public dividend and private divisor. The quotient and the remainder are computed in ciphertext. The security of the protocols is proved within the ideal/real paradigm, and the performance analysis shows the efficiency of the protocols compared with the full-encrypted division [ABSTRACT FROM AUTHOR]

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This inquiry investigates the moderating role of board size (BS), board independence (BI), and board gender diversity (BGD) on the relationship between dividend policy (DP) and firm performance (FP) in Ghana. The study utilized financial data from 14 purposively selected listed firms in Ghana, spanning 2010–2018. A system-generalized method of moments (GMM) was espoused for the estimation. Results indicate that whilst dividend per share and dividend payout ratio demonstrated significantly positive relationship with FP, dividend yield exhibited significantly negative relationship with FP. Additionally, while BI moderated the relationship between DP and FP, BS and BGD had no moderating influence on FP. [ABSTRACT FROM AUTHOR]

Using a large sample of US firms over the period of 1991–2015, we examine the economic benefits of paying dividends. We find that dividend payments mitigate stock price crash risk. We show that dividend payments reduce bad news hoarding (overinvestments) while bad news hoarding (overinvestments) is (are) positively associated with stock price crash risk, suggesting that curbing bad news hoarding and curtailing overinvestments are two channels through which dividends mitigate crash risk. Finally, our main results are robust to a battery of sensitivity checks including controls for potential endogeneity concerns. [ABSTRACT FROM AUTHOR]

As people become more aware of the catastrophic risk of carbon emissions, investors demand compensation for their exposure to carbon emission risk. However, it is unclear how a firm's carbon emissions affect its dividend policy to cater to shareholders and its implications for other stakeholders. Using publicly listed A‐share companies in China, we find that carbon emissions positively affect firms' cash dividends. The positive effect is more pronounced for firms with higher growth, better performance and those in heavily polluting industries. Furthermore, the cash dividends induced by carbon emissions benefit all stakeholders by reducing agency costs and promoting green innovations. [ABSTRACT FROM AUTHOR]