The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange

The purpose of this article is to determine what causes the phenomenon of disappearing dividends, which mostly occurs in stock exchanges in developed and emerging countries. This is the phenomenon of the decreasing probability of issuers to choose to pay dividends (cash, stock, and mixed) rather tha...

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Main Author:	Zainul Kisman
Format:	Article
Language:	English
Published:	Taylor & Francis Group 2020-01-01
Series:	Cogent Economics & Finance
Subjects:	agency cost size profitability solvency investment opportunity liquidity multinomial logit dividend decisions
Online Access:	http://dx.doi.org/10.1080/23322039.2020.1858566

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spelling	doaj-3b523582fd494691b8975f4a9c76dd6b2021-06-02T10:12:14ZengTaylor & Francis GroupCogent Economics & Finance2332-20392020-01-018110.1080/23322039.2020.18585661858566The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock ExchangeZainul Kisman0Universitas TrilogiThe purpose of this article is to determine what causes the phenomenon of disappearing dividends, which mostly occurs in stock exchanges in developed and emerging countries. This is the phenomenon of the decreasing probability of issuers to choose to pay dividends (cash, stock, and mixed) rather than not to pay. The results of multinomial logit model show, that size and profitability have a significant positive effect on cash, stock, and mixed dividend decisions. The decision not to pay dividends is influenced by low agency costs, high debt, over-liquidity, and excessive investment opportunities. To overcome this phenomenon, all stakeholders must be able to manage the above cause variables in an integrated manner.http://dx.doi.org/10.1080/23322039.2020.1858566agency costsizeprofitabilitysolvencyinvestment opportunityliquiditymultinomial logitdividend decisions
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Zainul Kisman
spellingShingle	Zainul Kisman The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange Cogent Economics & Finance agency cost size profitability solvency investment opportunity liquidity multinomial logit dividend decisions
author_facet	Zainul Kisman
author_sort	Zainul Kisman
title	The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
title_short	The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
title_full	The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
title_fullStr	The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
title_full_unstemmed	The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange
title_sort	solution to overcome the disappearing dividend phenomenon: learning from the experience of the indonesia stock exchange
publisher	Taylor & Francis Group
series	Cogent Economics & Finance
issn	2332-2039
publishDate	2020-01-01
description	The purpose of this article is to determine what causes the phenomenon of disappearing dividends, which mostly occurs in stock exchanges in developed and emerging countries. This is the phenomenon of the decreasing probability of issuers to choose to pay dividends (cash, stock, and mixed) rather than not to pay. The results of multinomial logit model show, that size and profitability have a significant positive effect on cash, stock, and mixed dividend decisions. The decision not to pay dividends is influenced by low agency costs, high debt, over-liquidity, and excessive investment opportunities. To overcome this phenomenon, all stakeholders must be able to manage the above cause variables in an integrated manner.
topic	agency cost size profitability solvency investment opportunity liquidity multinomial logit dividend decisions
url	http://dx.doi.org/10.1080/23322039.2020.1858566
work_keys_str_mv	AT zainulkisman thesolutiontoovercomethedisappearingdividendphenomenonlearningfromtheexperienceoftheindonesiastockexchange AT zainulkisman solutiontoovercomethedisappearingdividendphenomenonlearningfromtheexperienceoftheindonesiastockexchange
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The solution to overcome the disappearing dividend phenomenon: Learning from the experience of the Indonesia Stock Exchange

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