The Research of Dividend with Value of Company

• Main Authors: Yen Minting, 顏敏婷
• Other Authors: Jung-Hui Liang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/22052833257502915721

碩士 === 中國文化大學 === 國際企業管理研究所 === 93 === Based upon the trend of dividend yield and dividend payout ratio from 1981 to 2003 in Taiwan, it appears the publicly traded companies listed TSE have experienced different stages of dividend policies. However, this phenomena has changed since the government in Taiwan started to promote the corporate balanced dividend policy. The authority believes the companies should pay more cash dividend rather than issue too many stock dividend. This research, with event study and cross section regression analysis, seeks for the price change and the factor of the corporate dividend policy in Taiwan over this period. Our findings are as follow: When the companies make their announcement of dividend issuance, the price of stock does appear positive abnormal return. Nevertheless, after performing more detail analysis, we find the stock dividend still provide the significant positive abnormal return. On the other hand, the cash dividend provides the significant negative abnormal return. It appears no effect on its price. It does prove that the number of companies pay more cash dividend has been certainly increasing in the past few years. In addition, our finding does not support the theory of Bird in one hand in here. Finally, our regression result provide strong evidences that the companies’ earning power, risk level, insider ownership, growth opportunities, and firms’ size provide positive or negative impact to the level of total, cash and stock dividend. These are consistent with our hypotheses and most of our literature findings.