ABSTRACT
The objectives of this research include: (1) examining and analyzing the effect of capital structure, profitability, dividend payments and inflation on the value of mining companies;(2) examining and analyzing the moderating role of Good Corporate Governance (GCG) on the effect of capital structure, profitability, dividend payment and inflation on the value of mining companies listed on the IDX. The population of this study is all mining sector companies listed on the IDX for the period 2014-2020. The purposive sampling method is used as the sampling technique. The total population is 49 companies and the number of samples that meet the criteria are 44 companies. The research period is 7 years, so the total number of observations is 308 data (pooled data). The Moderated Regression Analysis (MRA) is used as the analysis method. The result is as follow: (1) capital structure has a negative significant effect on firm value;(2) profitability has a positive significant effect on firm value;(3) dividend payment has no significant effect on firm value;(4) inflation has a negative significant effect on firm value;(5) GCG has a moderating effect on the influence of capital structure, profitability and inflation on firm value, with the type of Quasi Moderating, whereas on the influence of dividend payments on firm value, it was the type of Pure Moderating.
ABSTRACT
PurposeThis paper examines whether ownership type has a moderating influence on dividend payouts during the COVID-19 pandemic crisis with respect to changes in profits. Future uncertainties because of the pandemic will result in a perceived need for liquidity within the company, but retaining cash may be risky for shareholders who could look for less risky alternatives. The dividend payout strategy is thus even more closely related to the overall type concentration and strategy of the owners during the crisis.Design/methodology/approachThe effects are explored and tested on early data from 2019 to 2020 of Finnish companies using ANCOVA while controlling for profitability and sector variables.FindingsA significant effect on dividend payout during the COVID crisis was found when the companies are dominantly held by individual owners validating early suggestions on such an influence. Therefore, this study contributes further to the academic debates on the influence of ownership concentration in times of crises. This study lists certain sectors which experience diminished profits during such a crisis which pinpoints sector separation in future discussions.Research limitations/implicationsThis study explores early data from a specific context in the Nordic countries. However, it does so out of purpose as explained in the paper.Practical implicationsOwnership type and concentration matters when it comes to dividend payout decisions under uncertainty with regard to changes in profit. Investors need to accept these behavioural insights into their decisions.Originality/valueThis study examines the signalling effect of dividends by analysing how actual or anticipated change in profitability due to a crisis is reflected by owners and leads to dividend payout decisions under uncertainty.
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Our target to be reached through this research to measure the impact of the strength of electronic rumours circulating through social networking sites on the demand of the consumer for foodstuffs in light of the COVID-19 pandemic. For which purpose, analysis has been made for the dimensions of both electronic rumours and social networking sites, in addition to the demand for foodstuffs in light of the COVID-19 pandemic. Besides, based on the field study using the questionnaire that has been distributed to a specific sample consisting of 394 consumers using one of the social networking sites, the study demonstrated the existence of a statistically significant effect of the electronic rumours on the consumer demand for foodstuffs in light of such pandemic. More to the point, this study attributed that effect to three factors pertaining to the nature of the electronic rumours and the means of their distribution, in addition to factors relating to the consumer personality, and other factors associated with the environmental conditions created by the pandemic in terms of economic, social and psychological aspects. Furthermore, amongst the most important of such factors, we uncover: the relative importance of rumours with regards to the consumer, and the degree of ambiguity that distinguished the crisis period about the measures taken by government to cope with the crisis, along with the degree of credibility and confidence that the consumer allocates to those rumours, in addition to the spread of anxiety and stress resulting from the crisis in question.
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The recent COVID-19 outbreak and significant increase in resulting global uncertainty poses many challenges to financial sectors. Many regulators took measures to safeguard the resilience of financial institutions by requesting postponements of dividend distributions until uncertainties about further development diminished. Specifically, on 2 April 2020, the European Insurance and Occupational Pensions Authority issued a statement requesting that re/insurers suspend all discretionary dividend distributions and share buybacks aimed at remunerating shareholders. Although the goal was to strengthen the overall financial stability of the sector, it may have negatively influenced insurers' equity prices in the short term. Hence, this paper empirically investigates this potential effect using an event study methodology. Although negative drops were observed in some cases, the obtained empirical results suggest that they were not statistically significant for the European insurers' equity market when considering the event windows covering several days after the statement was published.
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Research Question: Does financial distress, sustainability report disclosures, and firm size have an effect on earnings management? Motivation: Researchers want to know the effect of financial distress, sustainability report disclosures, and firm size on earnings management. Idea: The purpose of this paper is to determine the impact of Financial Distress (FD), Sustainability Report (SR), and Firm Size (FS) on earnings management in the banking sector of Indonesia, Malaysia and Thailand. Data: The data for this research is taken from the financial reports, annual reports, and sustainability reports issued by the companies from 2019 to 2020. The populations in this study are banking companies listed on the Indonesian, Malaysian, and Thailand Stock Exchanges. The samples used are 43 public banking companies in Indonesia, 10 public banking companies in Malaysia, and 8 public banking companies in Thailand. Tools: This study uses a regression model made with E-Views 10. Findings: The results show that financial distress has a significant influence on earnings management, sustainability reports have no influence on earnings management, and firm size has an influence on earnings management, but only in Malaysia's and Thailand's banking companies. Contribution: The results of this study are expected to provide ideas and reference materials regarding financial distress, disclosure of corporate sustainability reports, firm size, and earnings management practices. For companies, especially from the banking sector, this study is expected to provide information that they must be careful in reporting financial statements that will be published considering that banking companies are a business entity that receives and safeguards money owned by the public and lends out this money in the form of loans or credits. Banks are the main financial institutions in the financial system that drive the economy in a country. If a banking company experiences a financial crisis, it will have a wide impact on the financial system and economic sector in a country. The results of this study are also expected to help investors make investment decisions in a company and the results of this study are expected to help creditors in making funding decisions in a company.
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This paper examines and compares the dividend policies of American depository receipt (ADR) firms and U.S. firms and identifies the factors that determine these policies for both types of companies. We find that ADR firms have higher dividend yields than U.S. firms, while U.S. firms have higher stock repurchase ratios than ADR firms. Results from univariate comparisons and multivariate analysis show that the determining factors of dividend payout and stock repurchases differ between these two types of firms. This finding holds for the robustness check conducted in this study. This paper provides further evidence regarding dividend policies of ADR firms and sheds light on the differences in dividend policies between non-U.S. firm and U.S. firms.
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This article examines the impact of the regulator S statement requesting EU insurers to suspend dividend distributions due to the COVID-19 pandemic on share prices of insurance companies. The purpose of the regulation was to maintain a high level of capitalisation of insurance companies, thus allowing them to pay compensation for any damage incurred during the crisis. The statistical significance of the potential negative impact was explored using event study methodology. The empirical results suggest that the negative impact following the statementS release is not statistically significant over the chosen event window. The robustness of the results is confirmed by several statistical tests - parametric and nonparametric. The measure did not result in a fall in share prices in line with economic theory but, rather, contributed to ensuring the financial stability of the European insurance sector, supporting the real economy and consequently allowing quicker economic recovery.
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Despite developments of recent theoretical and numerous empirical studies on the policies effectively adopted by companies, the dividend distribution policy (DDP) remains largely unexplained. In this regard, the main purpose of the current study is to empirically examine the effects of both CEO duality and ownership concentration on DDP during a crisis period. Furthermore, we test, using an interaction variable, the moderating effect of the crisis period on the association between both the degree of CEO duality and the ownership concentration on the DDP by analyzing panel data on selected listed firms in an emerging economy, namely, Tunisia. Based on a sample made up of 576 firm-year observations over the period 1996–2019, the findings of this research indicate that the crisis period plays an important role in mitigating the positive effect of both CEO duality and ownership concentration on DDP. The findings confirm furthermore that the crisis period on the one hand and both CEO duality and ownership concentration on the other represent two competing forces influencing DDP. Our results also support the agency theory on which DDP depends, among other things, family ownership, board and company size, and ROE.