Browsing by Author "Nur Adiana, Hiau Abdullah"

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    Dividend Payment Behaviour and Its Determinants
    (Wiley Online Library, 2016) Abdulkadir, Rihanat Idowu; Nur Adiana, Hiau Abdullah; Woei-Chyuan, Wong
    This paper offers new evidence on the existence of disappearing dividend phenomenon in the Nigerian stock market and as to how clientele, catering and life-cycle theories of dividend affect firms' dividend paying behaviour. We did not find conclusive evidence to suggest that dividend payments had become second order of importance in firms' payout policies during 2003-2012 because we only observed a dO\\"I1ward trend in dividend payments during 2010-2012. Logistic regression of a probability to payor not to pay dividend and a panel regression of the size of dividend payment show that clientele theory stands out as compared to catering and life-cycle theories. Finns in our sample shape their dividend policies in line with the preference of foreign investors who have less preference for dividend over capital gain due to dividend taxes imposed on these shareholders. This underlines the importance of foreign investors on firms' corporate decisions given the fact they owned more than half of the total shares traded on the Nigerian Stock Exchange. Other detem1inants that affect the propensity to pay are profitability, investment opportunities, leverage, cash flow, crisis, stock market performance, past dividend and interest rate with signs that are consistent with the prediction of traditional dividend theories.
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    Dividend Policy Changes in the Pre-, Mid-, and Post-Financial Crisis
    (Asian Academy of Management, 2015) Abdulkadir, Rihanat Idowu; Nur Adiana, Hiau Abdullah; Wong, Woei-Chyuan
    This paper examines the impact of the global financial crisis on Nigerian listed firms' dividend policies. Our findings indicate that firms adjust their dividend policies in a manner consistent with the need to preserve financial flexibility and mitigate going¬concern risks during the crisis period. Specifically, highly leveraged firms and firms with low cash/lows are more likely to omit dividend payments during the crisis. Moreover, the negative effects offoreign ownership on dividend payments during the pre-crisis are muted during the crisis. This suggests that the tax-induced clientele effect became irrelevant as cash dividends became the first order of business for foreign investors during the crisis. In the same vein, prevailing investor demand for cash dividends exerts a positive influence on firms' probability to increase dividends during the crisis, implying that markets attach a high valuation to firms that are able to pay during the crisis period. We also find support for past dividends as a reference point for current dividend decisions in both the crisis and non-crisis periods, although the relation is weakened during the crisis. This implies that some managers strive to maintain stable dividends during the crisis period. Nevertheless, their ability to do so weakens during this period.