The Impact of Competitive Relations on the Issuers’ Dividend Policy
Abstract
Purpose: The aim of the research is to analyse the impact of indicators of market position and financial stability of companies as determinants of competitiveness on dividend policy.
Methodology: The research employed the methods of correlation analysis, multivariate regression, and statistical analysis.
Findings: As a result of the study, two indicators characterizing dividend policy and eleven indicators were identified as determinants of companies’ competitiveness. It was established which determinants of competitiveness have a close connection and significant impact on the dividend policy. It was found that for Lenovo, P/B ratio (–0.69) has the greatest impact, Dividend Yield, variables not included in the model (0.62), Annual revenue (1.18), Net assets by year (0.93) — on Annual dividend payments. For ASUS, Total debt by year (0.88) has the greatest impact on Dividend Yield, Total liabilities (0.36) and Total debt (0.63) - on Annual dividend payments.
Originality: The results indicate that ASUS actively uses debt policies in the competition for investors, while Lenovo follows a more conservative approach. The results may be useful for investors when choosing companies to invest in. Research prospects may be aimed at investigating the relationship between dividend policy and global macroeconomic phenomena.
References
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[17] Kukaj, D., and Ademi, M. (2024). The impacts of COVID-19 as an external socio-economic factor in the real convergence of the Western Balkan States toward the European Union. Pakistan Journal of Criminology, 16(1). DOI: https://doi.org/10.62271/pjc.16.1.591.604
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[19] Munandar, A., Fatimah, S., Cakranegara, A. A., Kunda, A., and Putri, A. N. (2023). Examining the impact managerial ownership and financial performance on dividend policy. Jurnal Ekonomi, 12(1): 66-70. Available at: https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1066/911
[20] Nambukara-Gamage, B., and Peries, S. T. (2020). The impact of dividend policy on shareholder wealth: A study on the retailing industry of Australia. Review of Integrative Business and Economics Research, 9(1):38-50. Available at: https://sibresearch.org/uploads/3/4/0/9/34097180/riber_9-1_02b_t19-021_38-50.pdf
[21] Pahi, D., and Yadav, I. S. (2022). Product market competition, agency cost and dividend payouts: New evidence from emerging market. Journal of Management and Governance, 26(3): 925-956. DOI:https://doi.org/10.1007/s10997-021-09570-0
[22] Pattiruhu, J. R., and Paais, M. (2020). Effect of liquidity, profitability, leverage, and firm size on dividend policy. The Journal of Asian Finance, Economics and Business, 7(10): 35-42. DOI:https://doi.org/10.13106/jafeb.2020.vol7.no10.035
[23] Pinto, G., Rastogi, S., Kadam, S., and Sharma, A. (2020). Bibliometric study on dividend policy. Qualitative Research in Financial Markets, 12(1): 72-95. DOI: https://doi.org/10.1108/QRFM-11-2018-0118
[24] Sari, D. P., Nabella, S. D., and Fadlilah, A. H. (2022). The effect of profitability, liquidity, leverage, and activity ratios on dividend policy in manufacturing companies in the food and beverage industry sector listed on the Indonesia Stock Exchange in the 2016-2020 period. Jurnal Mantik, 6(2): 1365-1375. DOI:https://doi.org/10.35335/mantik.v6i2.2494
[25] Setyabudi, T. (2021). The effect of institutional ownership, leverage, and profitability on firm value with dividend policy as an intervening variable. Journal of Business and Management Review, 2(7): 457-469. DOI: https://doi.org/10.47153/jbmr27.1632021
[26] Sheikh, M. F., Bhutta, A. I., Rehman, B., Bazil, M., and Hassan, A. (2022). Corporate social responsibility and dividend policy: A strategic choice in family firms. Journal of Family Business Management, 12(2): 296-315. DOI: https://doi.org/10.1108/JFBM-10-2020-0096
[27] Sheth, J., Jain, V., and Ambika, A. (2020). Repositioning the customer support services: The next frontier of competitive advantage. European Journal of Marketing, 54(7): 1787-1804. DOI: https://doi.org/10.1108/EJM-02-2020-0086
[28] Tomchuk, O., Tserklevych, V., Hurman, O., Petrenko, V., and Chymosh, K. (2021). The efficiency of higher education institutions: Evaluation and management of managers. Estudios de Economia Aplicada, 38(4). DOI: https://doi.org/10.25115/eea.v38i4.4046
[29] Trihermanto, F., and Nainggolan, Y. A. (2020). Corporate life cycle, CSR, and dividend policy: Empirical evidence of Indonesian listed firms. Social Responsibility Journal, 16(2): 159-178. DOI:https://doi.org/10.1108/SRJ-09-2017-0186
[30] Wahjudi, E. (2020). Factors affecting dividend policy in manufacturing companies in Indonesia Stock Exchange. Journal of Management Development, 39(1):4-17. DOI: https://doi.org/10.1108/JMD-07-2018-0211
[31] Yan, Q., and Zhu, H. (2020). Peer influence on dividend policy: Evidence from the Chinese stock market. Economics Letters, 192: 109229. DOI: https://doi.org/10.1016/j.econlet.2020.109229
[32] Yilmaz, M. K., Aksoy, M., and Khan, A. (2022). Moderating role of corporate governance and ownership structure on the relationship of corporate sustainability performance and dividend policy. Journal of Sustainable Finance and Investment, 1-30. DOI: https://doi.org/10.1080/20430795.2022.2100311
[33] Zahid, R. A., Taran, A., Khan, M. K., and Chersan, I.-C. (2023). ESG, dividend payout policy and the moderating role of audit quality: Empirical evidence from Western Europe. Borsa Istanbul Review, 23(2): 350-367. DOI: https://doi.org/10.1016/j.bir.2022.10.012
[2] Ali, H. (2022). Corporate dividend policy in the time of COVID-19: Evidence from the G-12 countries. Finance Research Letters, 46: 102493. DOI: https://doi.org/10.1016/j.frl.2021.102493
[3] Assarzadegan, P., and Hejazi, S. R. (2021). A game theoretic approach for analyzing the competition between national and store brands by considering store loyalty. Journal of Retailing and Consumer Services 60: 102449. DOI: https://doi.org/10.1016/j.jretconser.2021.102449
[4] Ben Salah, O., and Ben Amar, A. (2022). Does corporate social responsibility affect dividend policy? Empirical evidence in the French context. Journal of Global Responsibility, 13(3): 268-289. DOI:https://doi.org/10.1108/JGR-10-2021-0082
[5] Bykova, S., Zhylin, M., Bulavina, O., Artemchuk, M., and Purhani S. H. (2024). The role of emotional intelligence in making successful financial decisions. Theoretical and Practical Research in Economic Fields, 15(1):145-154. DOI: https://doi.org/10.14505/tpref.v15.1(29).14
[6] Cadenovic, J., Deloof, M., and Paeleman, I. (2024). Do dividend policies of privately held firms follow a life cycle? The European Journal of Finance, 30(5): 457-480. DOI:https://doi.org/10.1080/1351847X.2023.2206523
[7] CompaniesMarketCap.com. (2024). Largest companies by market cap. Available at: https://companiesmarketcap.com/apple/shares-outstanding/
[8] Dang, H. N., Vu, V. T.T., Ngo, X. T., and Hoang, H. T. V. (2021). Impact of dividend policy on corporate value: Experiment in Vietnam. International Journal of Finance and Economics, 26(4): 5815-5825. DOI:https://doi.org/10.1002/ijfe.2095
[9] Danila, N., Noreen, U., Azizan, N. A., Farid, M. and Ahmed, Z. (2020). Growth opportunities, capital structure and dividend policy in emerging market: Indonesia case study. The Journal of Asian Finance, Economics and Business, 7(10): 1-8. DOI: https://doi.org/10.13106/jafeb.2020.vol7.no10.001
[10] Ellili, N. O. D. (2022). Impact of environmental, social and governance disclosure on dividend policy: What is the role of corporate governance? Evidence from an emerging market. Corporate Social Responsibility and Environmental Management, 29(5): 1396-1413. DOI: https://doi.org/10.1002/csr.2277
[11] Hermansyah, A. M. S. (2023). The effect of dividend policy on corporate financial performance. Journal of Contemporary Administration and Management (ADMAN), 1(1): 5-8. DOI:https://doi.org/10.61100/adman.v1i1.2
[12] Iqbal, A., Zhang, X., Tauni, M. Z., and Jebran, K. (2020). Principal–principal agency conflicts, product market competition and corporate payout policy in China. Journal of Asia Business Studies, 14(3): 265-279. DOI:https://doi.org/10.1108/JABS-02-2018-0038
[13] Kadim, A., Sunardi, N., and Husain, T. (2020). The modeling firm's value based on financial ratios, intellectual capital and dividend policy. Accounting, 6(5): 859-870. DOI:http://dx.doi.org/%2010.5267/j.ac.2020.5.008
[14] Kang, E., and Kim, R. (2021). Product market competition, reputation, and dividend policy. Applied Economics, 53(29): 3334-3346. DOI: https://doi.org/10.1080/00036846.2021.1877255
[15] Khan, A. (2022). Ownership structure, board characteristics and dividend policy: Evidence from Turkey. Corporate Governance: The International Journal of Business in Society, 22(2): 340-363. DOI:https://doi.org/10.1108/CG-04-2021-0129
[16] Kilincarslan, E. (2021). The influence of board independence on dividend policy in controlling agency problems in family firms. International Journal of Accounting and Information Management, 29(4):552-582. DOI:https://doi.org/10.1108/IJAIM-03-2021-0056
[17] Kukaj, D., and Ademi, M. (2024). The impacts of COVID-19 as an external socio-economic factor in the real convergence of the Western Balkan States toward the European Union. Pakistan Journal of Criminology, 16(1). DOI: https://doi.org/10.62271/pjc.16.1.591.604
[18] Lotto, J. (2020). On an ongoing corporate dividend dialogue: Do external influences also matter in dividend decision? Cogent Business and Management, 7(1): 1787734. DOI:https://doi.org/10.1080/23311975.2020.1787734
[19] Munandar, A., Fatimah, S., Cakranegara, A. A., Kunda, A., and Putri, A. N. (2023). Examining the impact managerial ownership and financial performance on dividend policy. Jurnal Ekonomi, 12(1): 66-70. Available at: https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1066/911
[20] Nambukara-Gamage, B., and Peries, S. T. (2020). The impact of dividend policy on shareholder wealth: A study on the retailing industry of Australia. Review of Integrative Business and Economics Research, 9(1):38-50. Available at: https://sibresearch.org/uploads/3/4/0/9/34097180/riber_9-1_02b_t19-021_38-50.pdf
[21] Pahi, D., and Yadav, I. S. (2022). Product market competition, agency cost and dividend payouts: New evidence from emerging market. Journal of Management and Governance, 26(3): 925-956. DOI:https://doi.org/10.1007/s10997-021-09570-0
[22] Pattiruhu, J. R., and Paais, M. (2020). Effect of liquidity, profitability, leverage, and firm size on dividend policy. The Journal of Asian Finance, Economics and Business, 7(10): 35-42. DOI:https://doi.org/10.13106/jafeb.2020.vol7.no10.035
[23] Pinto, G., Rastogi, S., Kadam, S., and Sharma, A. (2020). Bibliometric study on dividend policy. Qualitative Research in Financial Markets, 12(1): 72-95. DOI: https://doi.org/10.1108/QRFM-11-2018-0118
[24] Sari, D. P., Nabella, S. D., and Fadlilah, A. H. (2022). The effect of profitability, liquidity, leverage, and activity ratios on dividend policy in manufacturing companies in the food and beverage industry sector listed on the Indonesia Stock Exchange in the 2016-2020 period. Jurnal Mantik, 6(2): 1365-1375. DOI:https://doi.org/10.35335/mantik.v6i2.2494
[25] Setyabudi, T. (2021). The effect of institutional ownership, leverage, and profitability on firm value with dividend policy as an intervening variable. Journal of Business and Management Review, 2(7): 457-469. DOI: https://doi.org/10.47153/jbmr27.1632021
[26] Sheikh, M. F., Bhutta, A. I., Rehman, B., Bazil, M., and Hassan, A. (2022). Corporate social responsibility and dividend policy: A strategic choice in family firms. Journal of Family Business Management, 12(2): 296-315. DOI: https://doi.org/10.1108/JFBM-10-2020-0096
[27] Sheth, J., Jain, V., and Ambika, A. (2020). Repositioning the customer support services: The next frontier of competitive advantage. European Journal of Marketing, 54(7): 1787-1804. DOI: https://doi.org/10.1108/EJM-02-2020-0086
[28] Tomchuk, O., Tserklevych, V., Hurman, O., Petrenko, V., and Chymosh, K. (2021). The efficiency of higher education institutions: Evaluation and management of managers. Estudios de Economia Aplicada, 38(4). DOI: https://doi.org/10.25115/eea.v38i4.4046
[29] Trihermanto, F., and Nainggolan, Y. A. (2020). Corporate life cycle, CSR, and dividend policy: Empirical evidence of Indonesian listed firms. Social Responsibility Journal, 16(2): 159-178. DOI:https://doi.org/10.1108/SRJ-09-2017-0186
[30] Wahjudi, E. (2020). Factors affecting dividend policy in manufacturing companies in Indonesia Stock Exchange. Journal of Management Development, 39(1):4-17. DOI: https://doi.org/10.1108/JMD-07-2018-0211
[31] Yan, Q., and Zhu, H. (2020). Peer influence on dividend policy: Evidence from the Chinese stock market. Economics Letters, 192: 109229. DOI: https://doi.org/10.1016/j.econlet.2020.109229
[32] Yilmaz, M. K., Aksoy, M., and Khan, A. (2022). Moderating role of corporate governance and ownership structure on the relationship of corporate sustainability performance and dividend policy. Journal of Sustainable Finance and Investment, 1-30. DOI: https://doi.org/10.1080/20430795.2022.2100311
[33] Zahid, R. A., Taran, A., Khan, M. K., and Chersan, I.-C. (2023). ESG, dividend payout policy and the moderating role of audit quality: Empirical evidence from Western Europe. Borsa Istanbul Review, 23(2): 350-367. DOI: https://doi.org/10.1016/j.bir.2022.10.012
Published
2024-09-30
How to Cite
ZHURBA, Oleksandr.
The Impact of Competitive Relations on the Issuers’ Dividend Policy.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 15, n. 3, p. 732 - 741, sep. 2024.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/8599>. Date accessed: 14 nov. 2024.
doi: https://doi.org/10.14505/tpref.v15.3(31).17.
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