What Are The Determinants Of Dividend Policy? The Case Of The Japanese Electrical Appliances Industry

Tsuji, Chikashi
December 2010
Business & Economics Journal;2010, p1
Academic Journal
This paper explores the determinants of the dividend policy of firms in the Japanese electrical appliances industry. First, our empirical investigations reveal that in this industry, corporate managers do not cater to investors' demands in both their dividend initiation and continuation decisions. Instead, in the Japanese electrical appliances industry, the determinants of firms' dividend policies are value-weighted dividend yields, valueweighted nonpayers' size, and value-weighted after-tax earnings-to-total-asset ratios. Moreover, cross-sectionally, this paper finds relations between corporate earnings and firm dividend payments in general. However, on an aggregate time-series basis, dividend payments tend to decrease company earnings in the Japanese electrical appliances industry, and this means rejection of the traditional signaling hypothesis.


Related Articles

  • A Test of the Catering Theory of Dividends: The Case of the Japanese Electric Appliances Industry. Tsuji, Chikashi // Journal of Management Research;Jul2010, Vol. 2 Issue 2, p1 

    We test the catering theory of dividends using data from firms in the Japanese electrical appliances industry. Our empirical investigations reveal that, in the Japanese electrical appliances industry, corporate managers do not consider catering behavior in either their dividend initiation...

  • Directors & Dividends.  // Finweek;10/3/2013, p60 

    A chart is presented which provides information on the directors' dealings of various companies which include Finbond, Pergrin, and Shoprit.

  • Dividend Increases Shrinking. Investor's Business Daily // Investors Business Daily;7/2/2014, pA01 

    8 The number of dividend hikes rose 18% in Q2 from a year ago to 696, the most since 1979, and 84% of S&P 500 companies are paying dividends, the most since 1998. Companies collectively increased their dividends by a net $12.6 bil in Q2, but that is down 28% from the payout gain a year earlier,...

  • Windows and orphans well protected. Brown, Mike // Finweek;9/13/2007, p101 

    The article presents author's view about the Satrix range of security in South Africa. He states that the Satrix range of security is generally known in the industry as optimal widows and orphans product. He added that investing in Satrix Divi would say to provide the dividend yield of the...

  • Trends in Dividend Payout. Singhania, Monica // Journal of Management Research (09725814);Dec2005, Vol. 5 Issue 3, p129 

    Dividend decision has been a subject of enquiry of financial analysts, academicians and researchers for about five decades now. The present study examines the trends in dividend payout of select Indian companies over the period 1992-2004. An attempt has been made to take a holistic view of the...

  • Growth stocks that pay dividends.  // Dow Theory Forecasts;6/9/2003, Vol. 59 Issue 23, p2 

    Reports on the increase of dividends in stock market due to growth of business organizations. Effect of decrease in dividend taxes on cash payouts; Companies with their growth per-share earnings; Estimated percentage of annualized dividend growth of Citigroup; Average of yield of Pfizer.

  • How Norwegian managers view dividend policy Baker, H. Kent; Mukherjee, Tarun K.; Paskelian, Ohannes George // Global Finance Journal;Sep2006, Vol. 17 Issue 1, p155 

    Abstract: We survey managers of Norwegian firms listed on the Oslo Stock Exchange about their views on dividend policy. The key factors that drive dividend policies are the level of current and expected future earnings, stability of earnings, current degree of financial leverage, and liquidity...

  • Operational Actions and Reliability of The Signaling Theory of Dividends: An Investigation of Earnings Anomaly Following Dividend Cuts and Omissions. Iqbal, Zahid; Rahman, Mohammad Habibur // Quarterly Journal of Business & Economics;Winter/Spring2002, Vol. 41 Issue 1/2, p13 

    The signaling theory of dividends provides no information on dividend cuts and omissions by firms that undertake operational actions to improve performance. Do managers of these firms reduce dividends to signal a decrease in future earnings? This issue may explain the anomalous findings in prior...

  • Spirit of venture. Fraser-Allen, Will // Money Marketing;5/5/2011 Retirement Strategy Supple, p16 

    The article reports on the number of benefits offered by Venture Capital Trust (VCT) to make them suitable for consideration as pension top-up. As stated, VCT offers very attractive levels of income which are promoted by offering tax benefits while its diversification benefits hail from their...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics