This study examines the unique patterns of dividend polices, including cash-only, stock-only, and dual dividends, the presence of dividend catering situations, and the factors driving the dividend decisions of Taiwanese firms. After the late 1990s, the proportion of firms paying dual dividends or cash-only dividends has risen gradually while the percentage of firms paying stock-only dividends has fallen sharply. Dividend premiums are related to not only the dividend decision, but also dividend changes and the magnitude of dividend changes. When one type of dividend premium (i.e. cash dividend) is high, managers are more likely to issue the same type of dividend and less likely to issue the other type of dividend (i.e. stock dividend). Firms are more likely to increase cash dividends when cash dividend premiums are high and raise the magnitudes of cash and stock dividends when cash and stock dividend premiums are high, respectively. Catering persists even after controlling for the effect of a firm¡¦s characteristics, risk, external policy, and macroeconomic situations. Other important determinants of the decision to pay or change dividends are also identified herein. This study offers a comprehensive understanding of all types of dividend payout practices in the Taiwan stock market.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-1108111-151544 |
| Date | 08 November 2011 |
| Creators | Teng, Chia-Chen |
| Contributors | Roger C. Y. Chen, So-De Shyu, Victor W. Liu, Chun-An Li, Anlin Chen |
| Publisher | NSYSU |
| Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-1108111-151544 |
| Rights | user_define, Copyright information available at source archive |
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