Thesis (MBA)--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The purpose of this study was to investigate the relationship between dividend changes
and operating cash flows in South Africa. Previous studies on the relationship in
developed markets established that the main determinants of dividend changes are
current year earnings and preceding dividend levels. The dividend changes-operating
cash flows relationship was successfully studied in the developing market of Nigeria.
The procedures and arguments used in this study were largely based on studies
undertaken by Charitou and Vafeas (1998) and Adelegan (2003). The relationship was
studied by selecting 60 companies that have been listed on the Johannesburg Stock
Exchange from 1990 to 2005. A multiple regression model was used in this study to
investigate the relationship between dividend changes and operating cash flows.
The multiple regression results revealed that there is a significant positive relationship
between dividend changes and operating cash flows. The results also revealed that
there is a significant positive relationship between dividend changes and profits after tax
and a significant negative relationship between dividend changes and the previous
year's dividend yield. Relative to profit after tax and operating cash flows, the previous
year's dividend yield has the strongest relationship with dividend changes.
The strength of the variables in explaining dividend changes has changed over time. In
the study, the multiple regression equation was estimated for three different periods,
1990 to 1993, 1994 to 1999 and 2000 to 2005. In the period 1994 to 2005, operating
cash flows showed a significant positive relationship with dividend changes. In all three
periods, the previous year's dividend yield showed a significant negative relationship
with dividend changes and was also relative to profit after tax and operating cash flows,
the strongest determinant of dividend changes in all three periods. In the period 1990 to
1999, profits after tax had a significant positive relationship with dividend changes. The
results showed that operating cash flows, over time explain more of dividend changes
than profits after tax.
The study also investigated factors that have the potential to influence the relationship
between dividend changes and operating cash flows. The multiple regression results
revealed that growth prospects, levels of leverage and the size of a company did not
significantly influence the dividend changes-operating cash flows relationship. / AFRIKAANSE OPSOMMING: Die doel van hierdie studie was om die verwantskap tussen dividendveranderinge en
kontant uit bedryfsaktiwiteite te ondersoek. Vorige studies oor die verwantskap wat met
betrekking tot ontwikkelende markte onderneem is, het bevind dat die hoof
determinante van dividendveranderinge die huidge jaar se verdienste en die
voorafgaande jaar se dividendopbrengste is. Die dividendveranderinge-kontant uit
bedryfsaldiwiteite verwantskap is suksesvol bestudeer in die ontwikkelende mark van
Nigerië. Die prosedures en argumente wat gebruik is in hierdie studie is hoofsaaklik op
die studies van Charitou en Vafeas (1998) en Adelegan (2003) gebaseer. Die
verwantskap is bestudeer deur 60 maatskappye te selekteer wat vanaf 1990 tot 2005
op die Johannesburg se Effektebeurs genoteerd was. 'n Meervoudige regressie model
is in die studie gebruik om die verwantskap tussen dividendveranderinge en kontant uit
bedryfsaktiwiteite te ondersoek.
Die meervoudige regressieresultate het gewys dat daar 'n positiewe betekenisvolle
verwantskap tussen dividend veranderinge en kontant uit bedryfsaktiwiteite is. Die
resultate het ook gewys dat daar 'n positiewe betekenisvolle verwantskap is tussen
dividendveranderinge en wins na belasting asook, 'n negatiewe betekenisvolle
verwantskap tussen dividendveranderinge en die voorafgaande jaar se
dividendopbrengs. Relatief tot wins na belasting en kontant uit bedryfsaktiwiteite, het die
voorafgaande jaar se dividendopbrengste 'n sterker verwantskap met
dividendveranderinge gehad.
Die sterkte van die veranderlikes in die verduideliking van dividendveranderinge het met
verloop van tyd verander. Die meervoudige regressie vergelyking is in die studie vir drie
verskillende periodes geraam, naamlik vir 1990 tot 1993, 1994 tot 1999 en 2000 tot
2005. In die periode 1994 tot 2005 was daar 'n positiewe betekenisvolle verwantskap
tussen dividendveranderinge en kontant uit bedryfaktiwiteite. Al drie periodes het 'n
negatiewe betekenisvolle verwantskap tussen dividendveranderinge en die
voorafgaande jaar se dividendopbrengs getoon. Die voorafgaande jaar se
dividendopbrengs was ook relatief tot wins na belasting en kontant uit bedryfsaktiwiteite
die sterkste determinant van dividendveranderinge in al drie periodes. Daar was 'n
positiewe betekenisvolle verwantskap tussen dividendveranderinge en wins na
belasting in die periode van 1990 to 1999. Die resultate toon dat kontant uit
bedryfsaktiwiteite met verloop van tyd meer verklaar van dividendverandringe as wins
na belasting.
Die studie het ook faktore wat die verwantskap tussen dividendveranderinge en kontant
uit bedryfsaktiwiteite potensieël kan beïnvloed, ondersoek. Die meervoudige
regressieresultate het getoon dat groeimoontlikhede, hefboomfinansiering en die
grootte van 'n maatskappy nie die verwantskap tussen dividendveranderinge en kontant
uit bedryfsaktiwiteite betekenisvol beïnvloed nie.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/18154 |
| Date | 03 1900 |
| Creators | Baard, Roelof Stephanus |
| Contributors | Hamman, W. D., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Rights | Stellenbosch University |
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