The Relationship between Information Transparency and Dividend Behavior

• Main Authors: Pin-Chun Chen, 陳品君
• Other Authors: 黃振豊
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/01869074776543184936

碩士 === 淡江大學 === 會計學系碩士班 === 101 === This study investigates the relationship between firm’s information transparency and cash dividend behavior. We use the data of firm’s information transparency from “Information Disclosure and Transparency Rankings System” of the Securities and Futures Institute. Cash dividend yield rate and cash dividend payout rate are used as the proxy for firm’s cash dividend payout to investigate the relationship between firm’s information transparency and cash dividend payout. In order to investigate the relationship between firm’s information transparency and dividend smoothing, we also adopt a statistical model, similar to the model built by Lintner (1956), to examine the dividend smoothness. The empirical results of this paper are listed as follow: The empirical result shows that firm’s information transparency has a positive relationship with cash dividend payout in Taiwan. It indicates that those companies with better information transparency have better stockholders’ protection and more cash dividend payout. Furthermore, this study finds that the outcome model of dividend (La porta et al. 2000) is supported. The result shows cash dividends are likely to be more stable in high transparency firms than in low transparency firms. It indicates that those companies with better information transparency have less manipulate dividend and more dividend smoothing. In sum, the more information transparency, the more cash dividend payout and dividend smoothing.