文章基本信息

标题：Determinants of Dividend Policy of Indian Manufacturing Companies: Panel Autoregressive Distributed Lag Analysis
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作者：M Kannadhasan ; S Aramvalarthanb ; P.Balasubramanianb 等
期刊名称：Academy of Accounting and Financial Studies Journal
印刷版ISSN：1096-3685
出版年度：2017
卷号：21
期号：2
页码：1-12
语种：English
出版社：The DreamCatchers Group, LLC
摘要：Corporate dividend policy has been an area of concern in financial literature for a long period of time. Lintner’s (1956) classic work initiated the discussion on dividend. However, despite extensive research, dividend continues to be a “puzzle with pieces that just don’t fit together”(Black, 1996). A vast amount of research has been carried out on dividend policy and various theories such as theory of dividend irrelevance, signalling theory, agency cost theory and bird in the hand theory have emerged to answer the different questions relating to dividend policy. In 1961, the focus of research on corporate dividend policy shifted dramatically with the publication of a seminal paper by Miller and Modigliani. They postulated the theory of dividend irrelevance and argued that “…given a firm’s investment policy, the dividend pay-out policy it chooses to follow will affect neither the current price of its shares nor the total returns to shareholders”. The irrelevance theory is based on the following assumptions: (1) Dividends and capital gains suffer the same rate of income tax, (2) buying and selling securities do not involve any transaction and floatation costs, (3) all the market participants have free and equal access to information, (4) there are no agency costs and (5) all market participants are price takers(Miller & Modigliani, 1961).Subsequent studies (for example, Black and Scholes 1974; Merton and Myron 1982; Miller 1986, Bernstein 1996) mostly supported the dividend irrelevance hypothesis. However, managers, analysts and investors are concerned and spend more time towards dividend policy, which indicates that there is relevance (Dennis and Stepanyan, 2009). This belief motivated the researchers to understand the relevance of dividend policy by relaxing perfect market assumptions of irrelevance theory, namely taxes, agency problems and information signalling, among others..
关键词：Dividend Pay-Out Ratio;Firm Fundamentals;Panel Autoregressive Distributed Lag Analysis