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'Investor Protection and Corporate Governance' analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level—the first such data in the region—and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital. This title will be useful to researchers, policy makers, government officials, and other professionals involved in corporate governance, economic policy, and business finance, law, and management.

We test the role of dividends and investor sentiment in the relation between idiosyncratic risk and expected returns because Pastor and Veronesi (J Financ 58:1749–1789, 2003) find evidence that dividends reduce firm-specific uncertainty by sending information to the market participants through dividends. Also, Baker and Wurgler (J Financ 61:1645–1680, 2006) document that the negative relation between idiosyncratic risk and expected return only exists under the optimistic sentiment. We first document that the negative relation between idiosyncratic risk and expected return is more concentrated for stocks without dividends than stocks with dividends. We further find that the role of dividends in the relation between idiosyncratic risk and expected return is not affected by investor sentiment. These findings are robust to weighing schemes of returns and firm characteristics such as beta, size, book-to-market ratio, momentum, and liquidity.

We consider De Finetti’s control problem for absolutely continuous strategies with control rates bounded by a concave function and prove that a generalized mean-reverting strategy is optimal in a Brownian model. In order to solve this problem, we need to deal with a nonlinear Ornstein–Uhlenbeck process. Despite the level of generality of the bound imposed on the rate, an explicit expression for the value function is obtained up to the evaluation of two functions. This optimal control problem has, as special cases, those solved in Jeanblanc-Picqué and Shiryaev (1995) and Renaud and Simard (2021) when the control rate is bounded by a constant and a linear function, respectively.

This study examines the relationship between funding surplus and dividend payments through capital structure. Research on the relationship between surplus companies and dividend payments is still relatively rare, as the majority of studies on funding surplus are linked to capital structure based on the pecking order theory. This study is the first to examine how dividend distribution differs among companies in Indonesia based on their surplus or deficit funding. This unique approach enriches the analysis by exploring how capital structure affects dividend distribution, contributing to a more thorough comprehension of the factors influencing dividend choices within the Indonesian setting. This analyzes 44 consumer sector manufacturing companies listed on the Indonesia Stock Exchange (ВЕ!) from 2016 to 2021 using panel regression analysis, requiring the selection of a model using path analysis. The main focus, first the role of capital structure as a mediator between funding surplus and dividend payments. Secondly, the influence of funding surplus on dividend payments. The research findings show that surplus funding is a factor that triggers the company's dividend payment policy. When the company has strong internal funding, the company tends to fulfill its dividend by relying on internal funding without considering the composition of its capital structure. Practical implications This study can be used as a reference in determining dividend policy based on the company's funding conditions.

The purpose of this paper is to examine empirically the signalling theory for a sample of firms listed at Amman Stock Exchange (ASE) during the period 2001 to 2006. The sample consists of 215 observations. The Event Study Methodology (ESM) is employed to examine the market reaction to dividend change announcements. The nave model is used to classify the sample under four sub samples; Dividend Increase, Dividend Decrease, Dividend No Change and No Dividend No Change. The market model, mean adjusted model, market adjusted model, market model adjusted with Scholes and Williams and market model adjusted with Fowler and Rorke models are used to generate the expected returns. Also, the t-test, ZD test and Corrados non-parametric test are used to examine the significance of the mean and cumulative abnormal returns. Overall, the results show that the market reacts positively to dividend increase, dividend decrease and dividend no change announcements. In addition, the results indicate that there is no significant market reaction to dividend no change sample with zero distributions. This result indicated that there is little value-relevance to dividend change announcements. The interpretation of the positive market reaction is related to dividend release announcements rather than dividend changes. Therefore, there is some support to the signalling hypothesis to dividend release. Furthermore, applying thin trading models and non-parametric tests leads to the same conclusion.

Green innovation is an important driver for the sustainable development of the real economy and the realization of a green transformation. Previous studies have paid less attention to the relationship between dividend payments and the persistence of green innovation and neglected the mechanism of knowledge management on the relationship between the two. Using Chinese listed non-financial companies from 2007 to 2022, this paper empirically investigates the effect and mechanism of dividend payment on corporate green innovation persistence based on two perspectives: principal–agent theory and incentive theory, using Tobit and negative binomial models. It was found that there is a non-linear inverted U-shaped relationship between dividend payments and the persistence of green innovation. Dividend payments influence the persistence of green innovation through agency costs and knowledge management capabilities. Both independent director networks and knowledge spillovers have a positive impact on the relationship between the two. Based on firms’ characteristics, the inverted U-shaped relationship between dividend payment and green innovation persistence is found to be more significant for non-state-owned firms and high-tech firms. Depending on the shareholder type, the inverted U-shaped curve between dividend payments for shareholding managers and green innovation persistence is the steepest. This study enriches the relevant literature on green innovations. In addition, it provides companies with a reference for formulating appropriate dividend policies, improving knowledge management capabilities, and improving the persistence of green innovation at a firm level.

This paper proposes a dual risk model with liquid reserve and proportional investments, this model is more suitable for real life. We derive the integral differential equations for the expected total discounted dividends before ruin. Since the exact solution of the equations does not exist, we obtain the approximate solution expression and further deduce the upper limit of the error caused by the approximate method for some special cases. In particular, we analyze the effect of the correlation volume on the expected total discounted dividend through two examples. Then, we also provide a special case to test the superiority of the sinc method, the results show that the sinc method is superior in solving approximate solutions. This study can help companies avoid potential liquidity risks, financial risks, and ensure the robust operation of the company.

This study examines the effect of investor-level income taxes on profit repatriation and dividend payout policies of multinational firms. The empirical estimations include two million firm-year observations in 130 countries. By augmenting the Lintner model of dividend payments, I employ parametric as well as semiparametric techniques to provide evidence that income taxes on dividends neither alter dividend payments to investors nor within-firm dividend payments. These results remain robust to a wide range of alternative specifications.

This paper examined the influence of dividend payments on the price of share of quoted manufacturing companies in Nigeria employing panel data with 125 data observations spanning from 2014-2018. A purposeful sampling technique was used to select twenty-five manufacturing companies investigated from the Nigerian stock market. A linear regression model was specified and was further broken down into a bivariate regression model and the method of least square regression was adopted for data analysis. The outcome of the panel regression indicated that, dividend per share has a positive influence on the price of shares of high and low geared manufacturing firms; earnings per shares positively influence the shares price of both dividend and non-dividend paying manufacturing companies; dividend yield show an adverse effect on the share price of new and old manufacturing companies; credit risk was found to positively impact share price of big manufacturing companies, but adversely affect the share price of small manufacturing companies in Nigeria. In view of the outcomes of the analysis, the study therefore recommended that a conducive and favorable business environment should be created by the government for both old and new manufacturing companies in Nigeria to thrive. Also, credit risk should be effectively and efficiently managed by small manufacturing companies in particular in order to eliminate its adverse influence on their share price.

In this paper, we consider some dividend problems in the perturbed compound Poisson model under a constant barrier dividend strategy. We approximate the expected present value of dividend payments before ruin and the expected discounted penalty function based on the COS method, and construct some nonparametric estimators by using a random sample on claim number and individual claim sizes. Under a large sample size setting, we perform an error analysis of the estimators. We also provide some simulation results to verify the effectiveness of this estimation method when the sample size is finite.