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The purpose of this paper is to investigate the informativeness of asset turnover (ATO) and profit margin (PM) of the DuPont analysis in explaining dividend policy.

Annual financial data from Compustat for the period 2004-2009 were used to analyze a sample of Malaysian firms.

This study finds both PM and ATO to strongly explain contemporaneous dividends. The decomposition of return on net operating assets (RNOA) into PM and ATO also improves the explanatory power of dividends. The results of the predictive model show that PM and ATO are useful in predicting the propensity of firms to pay dividends. The results of the change dividend model, however, do not provide any significant results for PM and ATO.

Understanding the influence of ATO and PM on dividends could enable managers to realize the importance of these factors when making dividend policy decisions. Other market participants, such as financial analysts and lenders, could also recognize the empirical specifics related to decomposing the profitability measure into its two components, one measuring the asset efficiency and the other measuring the profitability per unit of product, in the context of dividend policy.

This study extends the empirical specifics of prior dividend policy studies by decomposing the popular profitability measure of return on assets into its two components of PM and ATO.

This paper aims to investigate auditors’ pricing of excess cash holdings and the variation in their pricing decisions in light of the precautionary motives of cash holdings and certain firm-specific conditions and during periods of crisis.

The authors conduct the two-stage-least-squares multivariate analysis using a sample of publicly listed non-financial US firms for the period 2003 to 2021 (42,413 firm-year observations).

The findings show a significant positive relationship between excess cash and audit fee. Next, the authors find that audit pricing of excess cash is significantly higher for firms with lower financial constraints. However, the authors do not find evidence to suggest that auditors price excess cash significantly higher for firms with lower hedging needs. In additional analysis, the authors find evidence to suggest that auditors charge significantly less for excess cash in firms that report financial loss and firms operating in industries with high litigation risk. The additional analysis also reveals excess cash is not positively and significantly priced by auditors as a result of the global financial crisis and Covid-19 pandemic.

Most researchers have analyzed excess cash holding from the perspective of managers, i.e. agency conflict or managerial prudence, while somewhat neglecting auditors’ perception of the embedded risk of excess cash holdings. The authors provide new insights on auditors’ perspective of excess cash holding and identify certain factors/situation/conditions that cause variation in the audit fee premium. The findings offer useful insights for managers and shareholders who are interested in assessing the effects of excess cash holdings policies on the audit fee premium.

This paper aims to examine the association between environmental disclosure and waste performance.

This study is based on a sample of S&P 500 firms over a nine-year period from 2010 to 2018. The pooled ordinary least squares (OLS), logistic, propensity score matching (PSM) and instrumental variable-generalized method of moments regressions analyses have been used to examine the data.

The findings show a significant positive relationship between waste performance and environmental disclosure, suggesting that firms with superior waste performance tend to disclose more environmental information. Further, the authors distinguish between “hard” and “soft” environmental disclosures and find that the effect of waste performance is consistently positive and significant for each type. The observed positive and significant association of waste performance with environmental disclosure remains unchanged, regardless of the industry affiliation of firms, although firms from industries that are less environmentally sensitive provide a slightly higher level of environmental disclosure. The authors also explore possible channels that may explain the association between waste performance and environmental disclosure and find that litigation risk and cash holdings positively moderate the association. The finding remains robust to a number of alternative estimation approaches.

Overall, the authors present important evidence that waste performance is an important indicator of environmental disclosure. The findings are useful for corporations and stakeholders and have important implications around the globe as the authors continue to grapple with the ongoing issue of waste.

This study aims to examine whether CEO duality affects the association between board gender composition, dividend policy and cost of debt (COD).

The S&P 1500 firms’ data for this study were collected from the Bloomberg professional service terminal for the period 2010-2015.

The results show that board gender composition positively impacts both a firm’s propensity to pay dividends and the level of payouts. However, this positive association is only present in firms with CEO duality. The authors find no significant association between board gender composition and COD, but when the authors split the sample into firms with and without CEO duality, the authors find a negative association in firms without CEO duality.

The empirical results highlight important issues for policymakers, managers and investors. The study provides positive feedback on corporate governance rejuvenation efforts that seek to engender and advocate the appointments of female directors to corporate boards. Market participants, such as financial analysts and lenders, could recognize the empirical specifics related to the influence of board gender composition on firms’ dividend policy and COD in the context of CEO duality.

This study fills an important gap in the literature on the relationship between board gender composition and its relation with dividend policy and COD.

The purpose of this study is to examine the agency problem of expropriation using dividends in politically connected firms and the relevance of institutional investors in limiting this problem. The growing presence of this group of shareholders offers a unique opportunity to test their importance in the context of dividends payments and expropriation.

This study uses the Tobit regression to test the association between political connection, institutional investors and dividend payouts. The results are also robust to the three-stage-least squares regressions method.

The study is based on a random sample of 2,458 Malaysian firms-year observations for the period of 2004-2009. The results reveal that politically connected firms have an inclination to pay lower dividends, while institutional ownership is associated with higher dividend payouts. Furthermore, the findings reveal that higher levels of institutional ownership moderates the negative relationship between politically connected firms and dividends.

The findings have an important implication to regulators as it suggests that the institutional investors can influence the dividend payouts in politically connected firms through active monitoring, thus alleviating agency problems. This also provides a positive feedback on the regulators’ governance initiatives that quest to strengthen the roles of institutional investors.

This study is the first to examine the effectiveness of the monitoring role of institutional investors in the context of expropriation by politically connected firms from the perspective of dividend payouts.

This paper seeks to document an approach to reduce scrap losses using the root cause analysis technique in a lean manufacturing environment.

The study uses lean manufacturing root cause problem solving (RCPS) technique. The study starts with the collection phase, followed by the analysis phase and ends with the solution phase. Supporting data are presented using a Pareto chart to prioritise wastage in order to be more focused for improvement. The Toyota Production System's 5‐whys analysis is performed to analyse the cause of wastages, to formulate and implement corrective actions.

The application of the 5‐whys analysis in a manufacturing industry (XYZ Corporation) provides a fact‐based and structured approach to problem identification and correction that not only reduces, but also totally eliminates defects. Corrective action has permanently eliminated the top defect, which is the “last piece material scratch” and this results in zero scrap thereafter. In this study it was also proven that with sound understanding of manufacturing coupled with possible solutions using the 5‐whys analysis the authors were not only able to eliminate waste, but also to do it with zero‐cost.

The approach documented in the paper can be extended to other areas in the manufacturing industry to help improve overall equipment efficiency, breakdown, time loss, customer complaints, etc.

The purpose of this paper is to reduce or eliminate the overall equipment effectiveness (OEE’s) speed loss in a lean manufacturing environment.

This action research study uses the lean manufacturing 5-whys analysis technique to reduce or eliminate the speed loss.

The application of the 5-whys analysis technique in a manufacturing industry (XYZ Corporation) completely eliminated its top speed loss and resulted in a valuable savings of USD 32,811.5 per annum.

The 5-whys analysis technique which has been primarily known to improve the OEE’s quality loss and changeover loss has been proven to be an effective approach to also tackle speed loss; a loss which has been regarded as the most dominating loss among all the types of OEE’s losses and a difficult one to eliminate.

Little or no attempt has been made to date to expand the use of the 5-whys analysis technique beyond its originally intended purpose. The lessons learnt in this study could be applied to other organizations. The outcome of the study has also opened the possibility of widening the horizon of the use of the 5-whys analysis technique beyond its original intended objective and could be applicable to solve other losses of OEE and non-value added activities of lean philosophy in general.

The paper seeks to reduce or eliminate the small stop time loss using SMED in a lean manufacturing environment.

The study uses the lean manufacturing single minute exchange of dies (SMED) technique to reduce or eliminate the small stop time loss. The overall equipment effectiveness (OEE) is measured before and after the improvements are implemented.

The application of the single minute exchange of dies (SMED) technique in a manufacturing industry (XYZ Corporation) completely eliminated the small stop time loss. The SMED technique which has been only widely used to improve the changeover loss has been proven to be an effective approach to also tackle the small stop, a loss which has been regarded as one of the most difficult losses to be reduced among all the six big OEE losses. The elimination of the small stop has resulted in a valuable 2.08 percent improvement of XYZ's OEE.

The finding from this study is expected to benefit lean organizations in pursuit of tackling their small stops losses.

Although the SMED technique's impact and contribution to reduce or eliminate setup and changeover time loss is undeniable, the authors have extended the successful application of this technique to another key area of OEE's big loss, i.e. small stop.

This paper aims to furnish incremental insights on dividends and corporate governance (CG) by addressing the relationship between board meeting frequency and board independence with dividend payout. In particular, this study aims to investigate whether CG attributes are substitutes to control agency problem within the Malaysian context.

This paper examines panel data on a sample of 114 Malaysian firms (798 observations) for seven years from 2002 to 2008.

Based on 798 firm-year observations for the period from 2002 to 2008, the results show significant negative relationship between CG (board independence, board meeting frequency) and dividend payout. This suggests that CG and dividend payout are substitutes in reducing agency costs. Our study provides empirical evidence consistent with the “substitution argument”, indicating that firms with weak CG need to establish reputation by paying more dividends. Specifically, the findings indicate that firms with a higher proportion of independent directors and boards of director that meet more frequent pay lower dividends.

This paper provides evidence on previously untested governance characteristics in relation to how they act as substitute mechanisms with dividends for reducing agency costs. The results builds a strong case for the fresh strand of knowledge on dividends and CG which tests each CG variables to understand each of its unique relationship with dividends in line with the dividends outcome or substitute theory.

The purpose of this paper is to investigate the effects of family ownership on dividend payout from the perspective of agency costs in Malaysia.

Annual financial, board and family ownership data of 160 firms listed on the Bursa Malaysia are collected for the period 2005-2010. Analyses are carried out using descriptive statistics, χ2 tests, Tobit regression and three-stage least square regression analysis.

The empirical results suggest that family share ownership at the dispersed level from between 0 to 5 percent is negatively associated with dividend payout and positively associated from the 5 to 33 percent level with dividend payout. Consistent with the extant literature, the observed relationship between family share ownership and dividend payout is stronger in firms with smaller total assets (size), low debt and low-growth opportunities. Further examination of investment decisions lends support to arguments which attribute higher agency costs as a result of family ownerships.

The observed results at the different family ownership levels are attributed to the possible expropriation in family-owned firms and accordingly, to the proportional pressure by minority and other shareholders for dividend payout.

For policy makers, findings from this study could serve to justify initiatives to further strengthen the institutional and regulatory architectures that would enhance the power of minority and other shareholders of public listed firms in Malaysia.

This study contributes to the growing literature on dividend policy and family firms. Particularly, it provides further understanding of the effect of family ownership on dividend policy.