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This paper investigates the impact of annual reports complexity (associated with tone complexity) on dividend policy and value of dividend policy.

This paper uses the variable complexity provided by the textual analytics software (Diction 7.0) as the proxy for annual reports' tone complexity. The data covered non-financial American firms from years 2011–2019. The pooled ordinary least squares (OLS) regression and the instrumental variable regression are used to test the study’s arguments.

The findings suggest that the signaling theory of dividends holds in the United States. Firms with more complex annual reports tend to distribute more dividends, mainly in environment of high information. When information asymmetry is high, managers would use dividends as a tool to mitigate information asymmetry. Furthermore, the findings suggest that dividend policy has a stronger impact on firm value, especially when the tones of annual reports are highly complex. These findings support the previous results, namely, that managers would opt for dividend policy as a signaling tool for its positive impact on firm value. The results are robust to potential endogeneity issues and alternative proxies for both dividend policy and information asymmetry.

The results demonstrate that the dividends' signaling theory holds in the United States, where the findings cannot be generalized to all markets; However, the findings of this research can be of use to potential and current investors, users of annual reports and decision makers as well.

The paper highlights the effect of the tone complexity of annual reports (using 10K text analytics) on the value of dividend policy and dividend policy itself in a developed economy. Understanding this relation will enable stakeholders to forecast future dividends, choose more appropriate valuation methods and hence restore investors' faith.

This paper aims is to document the relationship between corporate ethics prevailing in the country and the dividend policies adopted by firms.

The paper uses the data of non-financial firms from 61 countries to test the arguments presented in this paper. The data cover the period between 2010 and 2017.

This paper shows that dividend policies adopted by firms are sensitive to corporate ethics prevailing in the country. The firms headquartered in countries with relatively strong corporate ethics are less likely to pay dividends than firms headquartered in countries with relatively weak corporate ethics. These findings are robust across various proxies of dividend policy and across various estimation procedures. The paper, however, also shows that the relationship between corporate ethics and dividend policies is confined only to countries with strong institutional environment. This relationship breaks down in countries with weak institutional environment. Lastly, the paper shows that the value of dividend policy is more pronounced in countries with relatively weak corporate ethics.

Unlike the attempts to relate firm-level ethics and dividend policy, this paper focuses on the relationship between country-level indicator of corporate ethics and dividend policies. The benefit of using the country-level indicator of corporate ethics is that it highlights the general attitude of corporations with respect to ethics.

The purpose of this paper is to assess how investment, financing and dividend policies may affect firm value.

The paper develops a system dynamics‐based model by using “financial management approach,” “capital structure approach,” “resource‐based approach,” and “sustainable growth approach” to identify investment, financing and dividend policies that may help maximize the firm value.

Adequate investment in productive assets is the first step to achieve value maximization objective. Low debt capital structure plays a dominant role to maximize the firm value, contrary to the suggestions generally found in corporate finance literature. Rather insignificant role of firm's short‐term financing policy is observed. A consistently stable dividend policy is also a prerequisite of firm value maximization.

The limitations of this study include: the competitors' actions are not modeled; human resources and other intangible resources are not modeled; instead of market debt, debt is assumed to be bank debt. Future studies may bring in the competitors' actions, intangible assets including human resources, and may also consider to model debt as market debt.

The firms operating in favorable product market conditions should keep their operating and financial risks low which will also maximize their firm value. On the other hand, the firms facing unfavorable product market conditions have to make a trade‐off to minimize operating risk vs financial risk.

Usually the studies test one policy in isolation. However, this may probably be the first study that simultaneously tests various combinations of investment, financing and dividend policies that may help maximize the firm value.

This paper aims to examine the effect of dividend policy on firm value for financial sector in an emerging country. Furthermore, it examines the moderating effect of IFRS adoption and the abolishment of mandatory dividend payment policy with considering the Lintner model of dividend smoothing.

Data were collected from 111 firms listed on Borsa Istanbul in the financial sector in Turkey over 1995–2017. Using an explanatory research design, this study performs various multivariate regression techniques to investigate the proposed relationships.

The outcomes demonstrate a positive and significant association between dividend policy and firm value. In addition, the relationship has strengthened after IFRS adoption, indicating that accounting information such as dividend-based ratios prepared under IFRS is more value relevant. The empirical outcomes supported the Lintner model, which is persistent with the signalling hypothesis. Moreover, the findings state that the abolishment of mandatory dividend payment in 2009 strengthened the association between dividend policy and firm value for financial institutions in Turkey.

These results provide an insight to the investors and managers that the effect of IFRS adoption and other policy changes could be greater on the association between dividend policy and firm value. The study empirically tests Lintner model of dividend smoothing for financial firms in an emerging economy.

This study contributes to the literature through providing vital insights on the relationship between dividend policy and firm value and empirically revisiting the Lintner model for financial sector in a developing economy, specifically Turkey. Furthermore, it addresses the influence of IFRS implementation on the association between dividend policy and firm value. These findings are robust to alternative sampling methods and to controlling for other factors which influence firm value.

The purpose of this study is firm value management through corporate finance policy design and scenario analysis to maximize the firm value.

The study develops a system dynamics model for an oil firm and incorporates the financial and physical processes to perform the firm valuation. The model is simulated under the current and alternative investment, capital structure and dividend policies of the case firm, assuming different oil and gas price and tax rate scenarios to identify which combination of policies maximizes the firm value.

The simulation results suggest that lowering the volume of investments, increasing the debt ratio and reducing the dividend payments from the current level increases the share price, given increased oil and gas price expectations and lower tax rates. However, the total firm value outperforms with increased investments toward the end of the simulation period. In case of decreased oil and gas price expectations, lower volume of investments, lower debt ratio and lower dividend payments increase the share prices, given lower taxes.

This study entails significance as it provides a comprehensive financial planning model for an oil firm, which incorporates the complex interactions of key financial and physical processes of the firm. The study contributes to debates on corporate finance policies by integrating multiple theories, accounting for accumulation processes and feedback loops and their non-linear interactions. The study proposes the consideration of combined impact of policies for firm value management.

Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Provides information on payback period; return on capital employed, earnings per share effect, working capital, profit planning, standard costing, financial statement planning and ratio analysis. Seeks to combine the practical rules of thumb of the traditionalists with the ideas of the financial theorists to form a balanced approach to practical financial management for MBA students, financial managers and undergraduates.

Ever since the work of John Lintner (1956), followed by the work of Miller and Modigliani (1961), dividend policy remains a controversial issue. Some of the questions that remain unanswered include: Does dividend policy affect value? What are the factors that determine dividend policy? Is dividend policy determined dependently or independently? A comprehensive survey project on dividend policy in Kuwait was conducted and two papers were produced. The first paper focused on the relationship of dividend policy to investment and financing policies, see Al‐ Deehani and Al‐Loughani (2002). This paper is a part of that project. It presents empirical effort to the area of dividend policy determinants in Kuwait as an emerging market. Based upon a result of a questionnaire survey, the paper will highlight (1) top management’s perception of value‐relevant and value‐irrelevant determinants of dividend policy, and (2) determine whether managers in different industries share similar views about these determinants. The paper is organized in the following manner: first the determinants of dividend policy are discussed through a review of the relevant literature. This is followed by the research methods stating the issues of concern to this study. The remainder of the paper discusses the results through the analysis of managers’ perceptions of determinants and a cross‐sectional analysis. The paper ends with a summary and the conclusions drawn from the study.

The paper aims to empirically test the impact of intellectual capital (IC) on a firm's dividend policy. Further, the authors investigate the moderator effect of Chief Executive Officer's (CEO) characteristics (gender, age and education) on this relationship.

The research was carried out on the main Chinese listed companies reported on the CSI 100 Index from 2016 to 2018. To assess the impact of IC on the dividend policy and then the moderating effect of the characteristics of the CEOs, the authors used a fixed effects panel data analysis.

The results suggest a positive impact of IC on dividend policies. In addition, this relationship is enhanced when the CEO is a woman, and the lower the age the higher the effect is.

To the best of the authors' knowledge, this is the first empirical study that explores the effect of IC on a firm's dividend policy in an emerging country. Specifically, this paper demonstrates the impact that IC has on the creation of shareholder value. Furthermore, considering the characteristics of the CEOs, this study tests new moderating effects in the relationship between IC and value creation and highlights how IC, dividends and CEO characteristics can be useful in aligning interests between ownership and management, enriching the debate on agency theory.

The purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.

This research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.

The results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.

This test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.

By calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

The purpose of this paper is to test the validity of irrelevant theory empirically by exploring the relationship between cash dividends, profitability, leverage and investment policy with the value of banking institutions in the Middle East and North Africa (MENA) markets.

The paper adopts Ohlson’s (1995) valuation model. The author estimates models by using static panel (random and fixed effects) techniques and the dynamic technique, namely, the GMM estimation. The empirical study covers a sample of 122 conventional and 37 Islamic banks listed on stock markets in 12 MENA countries over the period 1999–2018.

The empirical results show that dividend yield has no significant association with the value of conventional banks, whereas profitability, growth opportunity and leverage have a significant positive impact on the value of conventional banks. In contrast, the results for a sample of Islamic banks indicate that the dividend yield, profitability and leverage have a significant positive effect on the value of Islamic banks, whereas growth opportunity has no significant effect on the value of Islamic banks. Therefore, these results support, to a greater extent, the validity of the dividend irrelevance theory of Modigliani and Miller for conventional banks but would not be accepted for Islamic banks in the MENA region.

This study is restricted to a sample of one type of financial firms, banking firms listed in the MENA countries. In addition, the study has dealt with one type of dividend (the cash dividend).

Highlighting the difference between conventional and Islamic banks is crucial to understanding dividend policy behavior and to providing investors information to be integrated in their valuation setting to make informed corporate decisions.

To the best of the author’s knowledge, the present study is the first of its kind that it draws a comparative analysis by testing empirically the validity of the Irrelevant Theory to banks in the MENA region covering a long time period in the recent past.