Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.1
Tran Thai Ha Nguyen, W. Wong
This study evaluates the relationship between state ownership and corporate cash holdings by taking into account the role of the business environment in the context of an emerging economy. Both linear and non-linear models are employed for listed enterprises’ financial data during the period from 2011 to 2019 in Vietnam. The empirical results show that state ownership reduces the corporate cash holdings in the linear model, and there is a U-shaped relation between corporate cash holdings and state ownership in a non-linear manner. By using the extended models, this study obtains consistent evidence to show that corporates reduce their cash holdings when the business environment becomes better and vice versa. Specifically, we find that the speed of cash adjustment in Vietnam is smaller than that in the developed countries, implying that corporates can shelter their liquid assets in order to avoid the negative effects stemming from agency problems between managers and state-shareholders. However, they are willing to hold more cash because of the mitigated agency problems in the case of the dominant state ownership. Ultimately, the business environment’s quality will have more power in determining the behaviour of corporates’ cash holding to meet market risks than state ownership. This study contributes to financial literature by determining the business environment’s critical role in the relationship between state ownership and corporate cash holdings.
{"title":"Do State Ownership and Business Environment Explain Corporate Cash Holdings? Empirical Evidence from an Emerging Country","authors":"Tran Thai Ha Nguyen, W. Wong","doi":"10.21315/aamjaf2021.17.1.1","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.1","url":null,"abstract":"This study evaluates the relationship between state ownership and corporate cash holdings by taking into account the role of the business environment in the context of an emerging economy. Both linear and non-linear models are employed for listed enterprises’ financial data during the period from 2011 to 2019 in Vietnam. The empirical results show that state ownership reduces the corporate cash holdings in the linear model, and there is a U-shaped relation between corporate cash holdings and state ownership in a non-linear manner. By using the extended models, this study obtains consistent evidence to show that corporates reduce their cash holdings when the business environment becomes better and vice versa. Specifically, we find that the speed of cash adjustment in Vietnam is smaller than that in the developed countries, implying that corporates can shelter their liquid assets in order to avoid the negative effects stemming from agency problems between managers and state-shareholders. However, they are willing to hold more cash because of the mitigated agency problems in the case of the dominant state ownership. Ultimately, the business environment’s quality will have more power in determining the behaviour of corporates’ cash holding to meet market risks than state ownership. This study contributes to financial literature by determining the business environment’s critical role in the relationship between state ownership and corporate cash holdings.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44953562","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.6
Eriko Kasaoka
National pension systems will vary among countries because of several factors. The role of the corporate pension in sustaining and supporting a country’s retirees is also different among nations. There are two main pension plans defined in International Accounting Standard No. 19: Employee Benefits, namely, defined benefit plans and defined contribution plans. The defined benefit plan requires a company to recognise its pension funding status on the balance sheet. In contrast, in a defined contribution plan, only the contribution amount to the plan is recognised as an expense on the firm’s income statement. The aim of this paper is to investigate in ASEAN countries the relationship between the presence of corporate pension plans and specific financial factors in companies. The result of the empirical research shows companies with higher profitability and efficiency tend to provide corporate pension plans to their employees.
{"title":"Corporate Pension Systems and Pension Funding Status in ASEAN Countries","authors":"Eriko Kasaoka","doi":"10.21315/aamjaf2021.17.1.6","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.6","url":null,"abstract":"National pension systems will vary among countries because of several factors. The role of the corporate pension in sustaining and supporting a country’s retirees is also different among nations. There are two main pension plans defined in International Accounting Standard No. 19: Employee Benefits, namely, defined benefit plans and defined contribution plans. The defined benefit plan requires a company to recognise its pension funding status on the balance sheet. In contrast, in a defined contribution plan, only the contribution amount to the plan is recognised as an expense on the firm’s income statement. The aim of this paper is to investigate in ASEAN countries the relationship between the presence of corporate pension plans and specific financial factors in companies. The result of the empirical research shows companies with higher profitability and efficiency tend to provide corporate pension plans to their employees.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44484371","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.10
T. Okoli, D. Tewari
As the global financial system evolves towards a technology-enabled financial solution-Fintech, its implication to the future of the financial system becomes a policy concern. This study investigates non-linear/inverted U-shaped Fintech adoption process among a panel of 32 African countries spanning from 2002–2018. The study argues that Fintech adoption in Africa will continue to rise and not follow the inverted U-shaped process if sustained through greater trade openness. The dynamic system GMM techniques found a strong evidence for an inverted U- shaped adoption process for the 32 African markets and 24 frontier African markets but violated among the emerging (N = 3) and fragile (N = 5) groups. The first lag of Fintech compatibility and the contemporaneous levels of relativeadvantage, complexity, trial-ability and observe-ability were its main determinants. The study concludes that Fintech will be replaced with new innovations in future irrespective of possible sustainability strategy. The need to strengthen African financial markets’ innovativeness to have a competitive edge on Fintech’s replacement is stressed.
{"title":"Does the Adoption Process of Financial Technology in Africa Follow an Inverted U-Shaped Hypothesis? An Evaluation of Rogers Diffusion of Innovation Theory","authors":"T. Okoli, D. Tewari","doi":"10.21315/aamjaf2021.17.1.10","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.10","url":null,"abstract":"As the global financial system evolves towards a technology-enabled financial solution-Fintech, its implication to the future of the financial system becomes a policy concern. This study investigates non-linear/inverted U-shaped Fintech adoption process among a panel of 32 African countries spanning from 2002–2018. The study argues that Fintech adoption in Africa will continue to rise and not follow the inverted U-shaped process if sustained through greater trade openness. The dynamic system GMM techniques found a strong evidence for an inverted U- shaped adoption process for the 32 African markets and 24 frontier African markets but violated among the emerging (N = 3) and fragile (N = 5) groups. The first lag of Fintech compatibility and the contemporaneous levels of relativeadvantage, complexity, trial-ability and observe-ability were its main determinants. The study concludes that Fintech will be replaced with new innovations in future irrespective of possible sustainability strategy. The need to strengthen African financial markets’ innovativeness to have a competitive edge on Fintech’s replacement is stressed.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42394474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.7
Alex Johanes Simamora
The debate on capital structure contribution occurs in many studies of finance. This research aims to examine the moderating role of managerial ability on the effect of capital structure on firms’ performance. The research sample includes 383 manufacturing firms years listed on the Indonesian Stock Exchange. The capital structure is measured by the leverage variables. Managerial ability is measured by a manager-specific efficiency score. The analysis method uses firm and year fixed effect regression tests. Based on the result, higher debts can improve firms’ performance when higher managerial ability occurs. Managers with managerial ability can promote the debt benefits and mitigate the cost of the debt so that the use of debt can increase firms’ performance. This research provides new evidence that managerial ability can fill the gap of inconsistent previous findings of the relationship between capital structure and performance.
{"title":"Capital Structure and Performance: Examination of Managerial Ability as Moderating Role","authors":"Alex Johanes Simamora","doi":"10.21315/aamjaf2021.17.1.7","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.7","url":null,"abstract":"The debate on capital structure contribution occurs in many studies of finance. This research aims to examine the moderating role of managerial ability on the effect of capital structure on firms’ performance. The research sample includes 383 manufacturing firms years listed on the Indonesian Stock Exchange. The capital structure is measured by the leverage variables. Managerial ability is measured by a manager-specific efficiency score. The analysis method uses firm and year fixed effect regression tests. Based on the result, higher debts can improve firms’ performance when higher managerial ability occurs. Managers with managerial ability can promote the debt benefits and mitigate the cost of the debt so that the use of debt can increase firms’ performance. This research provides new evidence that managerial ability can fill the gap of inconsistent previous findings of the relationship between capital structure and performance.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46574649","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.5
J. Hossain, M. Ismail
In recent years, cryptocurrency or virtual currency is becoming an essential medium of exchange in consumer and domestic trading. Nevertheless, the trading values of cryptocurrency compared to real money are very uncertain and can change dramatically. This article is aimed to assess the uncertainty or volatility of cryptocurrencies, mostly on Bitcoin. In the digital currencies market, Bitcoin is a widely accepted currency. Other digital currencies of the market may influence Bitcoin. For example, Ethereum, Litecoin, Zcash, Monero, Dash and Ripple have a positive impact on Bitcoin. Previous research only focuses on Bitcoin and other markets such as stock markets, energy markets, and exchange rates. However, here we focus on interlinkages and volatility dynamics within cryptocurrency markets by applying some econometrics models. In this article, we have shown that the relationship between Bitcoin and other currencies can be modelled in the ARCH, GARCH, VAR and MGARCH framework. Forecast values of the GARCH (3,3) model are given very close to the original data. VAR stability result shows that the model is stable. Using the CCC, VCC, and DCC of the MGARCH model on daily returns from 1st January 2017 to 15th March 2019, we found significant volatility and strong correlations between the variables.
{"title":"Is There Any Influence of Other Cryptocurrencies on Bitcoin?","authors":"J. Hossain, M. Ismail","doi":"10.21315/aamjaf2021.17.1.5","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.5","url":null,"abstract":"In recent years, cryptocurrency or virtual currency is becoming an essential medium of exchange in consumer and domestic trading. Nevertheless, the trading values of cryptocurrency compared to real money are very uncertain and can change dramatically. This article is aimed to assess the uncertainty or volatility of cryptocurrencies, mostly on Bitcoin. In the digital currencies market, Bitcoin is a widely accepted currency. Other digital currencies of the market may influence Bitcoin. For example, Ethereum, Litecoin, Zcash, Monero, Dash and Ripple have a positive impact on Bitcoin. Previous research only focuses on Bitcoin and other markets such as stock markets, energy markets, and exchange rates. However, here we focus on interlinkages and volatility dynamics within cryptocurrency markets by applying some econometrics models. In this article, we have shown that the relationship between Bitcoin and other currencies can be modelled in the ARCH, GARCH, VAR and MGARCH framework. Forecast values of the GARCH (3,3) model are given very close to the original data. VAR stability result shows that the model is stable. Using the CCC, VCC, and DCC of the MGARCH model on daily returns from 1st January 2017 to 15th March 2019, we found significant volatility and strong correlations between the variables.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49456041","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.9
N. Rahim, Ruhani Ali, E. Chu
This study aims to examine whether the difference in country-level corporate governance between ASEAN bidding and the target country could explain the performance change (Tobin’s Q) following a Cross-border merger and acquisition (CBMA); hence, the CBMA success. Using 142 CBMAs involving ASEAN firms as the bidder over the period 2002 to 2013, the study found that the difference in country-level corporate governance could result in corporate governance spillover through bootstrapping. This has resulted in the improvement of ASEAN bidder corporate governance and positively affected the CBMA success. However, the improvement must be large enough to outweigh the high acquisition cost.
{"title":"Corporate Governance Spillover through Bootstrapping and ASEAN Bidder CBMA Success","authors":"N. Rahim, Ruhani Ali, E. Chu","doi":"10.21315/aamjaf2021.17.1.9","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.9","url":null,"abstract":"This study aims to examine whether the difference in country-level corporate governance between ASEAN bidding and the target country could explain the performance change (Tobin’s Q) following a Cross-border merger and acquisition (CBMA); hence, the CBMA success. Using 142 CBMAs involving ASEAN firms as the bidder over the period 2002 to 2013, the study found that the difference in country-level corporate governance could result in corporate governance spillover through bootstrapping. This has resulted in the improvement of ASEAN bidder corporate governance and positively affected the CBMA success. However, the improvement must be large enough to outweigh the high acquisition cost.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49413679","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-06-30DOI: 10.21315/aamjaf2021.17.1.4
Atika Ben Gamra, D. Ellouze
The aim of this paper is to investigate the effect of family shareholding and chief executive officer (CEO) characteristics on earnings management. We use panel data for a sample of 37 Tunisian non-financial listed firms over the period 2007–2017. We contribute to the literature on corporate governance in family firms by testing the effect of the presence of a family or a founder CEO on earnings management in Tunisia. Our results show that the family ownership and the presence of a family CEO (either founder or not) are positively and significantly associated with earnings management practices. These findings suggest that families’ dominance with a significant equity stake and a CEO position under control leads to an entrenchment effect resulting in poor earnings reporting quality.
{"title":"Family Ownership and Accrual-Based Earnings Management: Evidence from Tunisia","authors":"Atika Ben Gamra, D. Ellouze","doi":"10.21315/aamjaf2021.17.1.4","DOIUrl":"https://doi.org/10.21315/aamjaf2021.17.1.4","url":null,"abstract":"The aim of this paper is to investigate the effect of family shareholding and chief executive officer (CEO) characteristics on earnings management. We use panel data for a sample of 37 Tunisian non-financial listed firms over the period 2007–2017. We contribute to the literature on corporate governance in family firms by testing the effect of the presence of a family or a founder CEO on earnings management in Tunisia. Our results show that the family ownership and the presence of a family CEO (either founder or not) are positively and significantly associated with earnings management practices. These findings suggest that families’ dominance with a significant equity stake and a CEO position under control leads to an entrenchment effect resulting in poor earnings reporting quality.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2021-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47235716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-23DOI: 10.21315/aamjaf2020.16.2.4
M. Bakri, A. N. Bany-Ariffin, B. T. Matemilola, W. Lau
This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed firms from 22 emerging markets to be extrapolated in the emerging market context. To analyse the data, this article used the panel data Tobit model and panel logistic regression, both with random effects. The analysis revealed that financial market development has a positive moderating effect on the relationship between stock liquidity and dividend by improving local market liquidity and mitigating information asymmetry. The study findings provide information for managers to devise investment strategy in the emerging markets. This article provides new insights into the financial market development moderating role on the relationship between stock liquidity and dividend.
{"title":"Moderating Role of Financial Market Development on the Relationship between Stock Liquidity and Dividend","authors":"M. Bakri, A. N. Bany-Ariffin, B. T. Matemilola, W. Lau","doi":"10.21315/aamjaf2020.16.2.4","DOIUrl":"https://doi.org/10.21315/aamjaf2020.16.2.4","url":null,"abstract":"This article aims to investigate the relationship between stock liquidity and dividend across emerging market countries as well as examined the moderating role of financial market development on the relationship between stock liquidity and dividend. Data were obtained from the World Bank and DataStream databases. The study examined 3,258 listed firms from 22 emerging markets to be extrapolated in the emerging market context. To analyse the data, this article used the panel data Tobit model and panel logistic regression, both with random effects. The analysis revealed that financial market development has a positive moderating effect on the relationship between stock liquidity and dividend by improving local market liquidity and mitigating information asymmetry. The study findings provide information for managers to devise investment strategy in the emerging markets. This article provides new insights into the financial market development moderating role on the relationship between stock liquidity and dividend.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2020-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44214643","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2020-12-23DOI: 10.21315/aamjaf2020.16.2.5
Nhung Do, Nha Van Tue Pham
Expected earnings and stock price are important determinants of investors’ decision. This research is conducted to estimate earnings persistence and examine the relationship between sustainable earnings on price-to-earning (P/E) ratio based on financial statements’ information of 631 publicly listed non-financial companies on Vietnam’s stock market, by using Ordinary Least Squares (OLS) and Logit function. The results show that earnings persistence depends on net operating assets growth, profit margin changes, operating asset turnover changes and past profitability. Besides, both the sustainable and unsustainable components of earnings growth are proved to empirically affect P/E ratio, even though investors underreact to sustainable earnings and overreact to unsustainable earnings. This study helps to improve investors’ perception of their future earnings, investment value and companies’ sustainable growth, particularly in the context of developing stock market of Vietnam which is full of market anomalies.
{"title":"The Influence of Sustainable Earnings on Stock Price: Evidence from Publicly Listed Vietnamese Business Enterprises","authors":"Nhung Do, Nha Van Tue Pham","doi":"10.21315/aamjaf2020.16.2.5","DOIUrl":"https://doi.org/10.21315/aamjaf2020.16.2.5","url":null,"abstract":"Expected earnings and stock price are important determinants of investors’ decision. This research is conducted to estimate earnings persistence and examine the relationship between sustainable earnings on price-to-earning (P/E) ratio based on financial statements’ information of 631 publicly listed non-financial companies on Vietnam’s stock market, by using Ordinary Least Squares (OLS) and Logit function. The results show that earnings persistence depends on net operating assets growth, profit margin changes, operating asset turnover changes and past profitability. Besides, both the sustainable and unsustainable components of earnings growth are proved to empirically affect P/E ratio, even though investors underreact to sustainable earnings and overreact to unsustainable earnings. This study helps to improve investors’ perception of their future earnings, investment value and companies’ sustainable growth, particularly in the context of developing stock market of Vietnam which is full of market anomalies.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2020-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48798655","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study seeks to present the relationship between executive compensation, dividend payout policy and ownership structure of listed firms in Malaysia. We examine a panel data on a sample of 300 of the largest Malaysian public listed companies (PLCs) on Bursa Malaysia for the years 2008 to 2014. Based on 2,009 firm-year observations, our results show consistent empirical positive evidence on the association between dividend payout and executive compensation across all models. However, the results are inconsistent with Bhattacharyya model of dividend payout. Further, there is evidence that government and family ownerships are positively associated with dividend payout. Our results show that the positive relationship between executive compensation and dividend payout is more evident in politically connected firms (PCON firms) which is consistent with the clientele (catering) theory.
{"title":"Executive Compensation, Ownership Structure and Dividend Payout: Evidence from Malaysia","authors":"Ravichandran Subramaniam, Chee Ghee Teh, Murugasu Thangarajah","doi":"10.21315/aamjaf2020.16.2.3","DOIUrl":"https://doi.org/10.21315/aamjaf2020.16.2.3","url":null,"abstract":"This study seeks to present the relationship between executive compensation, dividend payout policy and ownership structure of listed firms in Malaysia. We examine a panel data on a sample of 300 of the largest Malaysian public listed companies (PLCs) on Bursa Malaysia for the years 2008 to 2014. Based on 2,009 firm-year observations, our results show consistent empirical positive evidence on the association between dividend payout and executive compensation across all models. However, the results are inconsistent with Bhattacharyya model of dividend payout. Further, there is evidence that government and family ownerships are positively associated with dividend payout. Our results show that the positive relationship between executive compensation and dividend payout is more evident in politically connected firms (PCON firms) which is consistent with the clientele (catering) theory.","PeriodicalId":44370,"journal":{"name":"Asian Academy of Management Journal of Accounting and Finance","volume":null,"pages":null},"PeriodicalIF":0.9,"publicationDate":"2020-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47780813","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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