Testing Trade-Off and Pecking Order Predictions about Dividends and Debt

Stakeholders’ demand for companies to provide social, economic and environmental reports is increasingly becoming a fundamental requirement for companies. This paper investigates the factors that drive the choice of sustainability reporting in an emerging market economy context, with reference to Nigeria. Using data sourced from 3 different reports (annual accounts, sustainability reports and websites) of the top 50 large companies listed in the Nigeria Stock Exchange for the period 2015–2020 and a fixed effect panel regression model, our study makes three important findings. First, the study provides evidence that sustainability reporting is mostly influenced by the following company internal factors: size, profitability, ownership structure, listing age, leverage and auditor type. Second, the findings indicate that that size of firms, profitability and companies audited by Big-4 audit firms has a significant positive relationship with sustainability reporting in Nigeria. In contrast, ownership structure and the leverage position of firms affect sustainability reporting negatively. Finally, our study shows that the banking and oil and gas sectors take sustainability reporting more seriously than any other sectors in Nigeria. Contextualizing the findings within accountability and transparency, we provide evidence on the drivers and the relationship between the various drivers and sustainability reporting in Nigeria. This has implications for policymakers, future researchers and contributes to the literature of sustainability reporting in Nigeria. Even though this study used Nigerian data, it will increase pressure on firms in other developing countries to assess the context-specific determinants of sustainability reporting.

/pdf/drivers-of-sustainability-accounting-and-reporting-in-17hb3vn4.pdf

Drivers of Sustainability Accounting and Reporting in Emerging Economies: Evidence from Nigeria

Dividend policy is one of the most controversial areas of corporate finance. The paper presents the results of the research in the banking sector of the Republic of Serbia. The specific characteristics of the financial sector make the research on dividend policy determinants additionally complex. This study aims to determine the factors of dividend policy in the Serbian banking sector in the period 2009–2018. The model of random effects was chosen to test the relationship between dividend determinants and dividend payout. Empirical results show that previous years’ dividends have a significant positive effect on dividend policy. Individual investors can benefit from the research to a great extent, as well as bank managers, when creating dividend policies that would contribute to maximising profit and satisfying the needs of employees and shareholders in the long run.

/pdf/determinants-of-dividend-policy-a-case-of-serbia-s-banking-1fu5dxvwa4.pdf

Determinants of Dividend Policy: A Case of Serbia’s Banking Sector

The study is against the background that sustainable developmental practices usually involve financial outflows and hence, may be an unattractive investment to managers. Managers are likely to want to reduce expenses as much as possible to improve profit and this may be at the detriment of the environment. This study evaluated the impact of corporate compliance with accounting standards that are deemed to enforce sustainable development practices and can, therefore, imply sustainable development practices by Nigerian companies, on their profitability. Forty-four companies that have existed since standardization began in Nigeria were studied over five years, using spear-man rank correlation statistical technique that compared the ranking of compliance with ranking of profitability. It was discovered that compliance with sustainable development related standards by Nigerian companies does not affect profitability over the years studied. The study recommends that companies should engage in both internally and externally focused sustainable development activities.

Sustainable Development and Profitability of Nigerian Quoted Companies

This research explores the relationship between sustainability and financial performance of Saudi listed firms. Using a mixed-methods approach, it examines financial data and sustainability indicators from various industries. Initial findings show a positive impact of sustainability on financial performance, suggesting that organizations adopting sustainable practices tend to have improved financial outcomes. The study also explores the underlying mechanisms driving this relationship, including corporate governance, stakeholder engagement, innovation, and strategic alignment. It also considers contextual factors like industry characteristics, geographical location, regulatory frameworks, and firm size. The findings have implications for academia and practitioners, providing empirical evidence of the benefits and challenges of sustainability practices. The research aims to provide a holistic perspective on guiding organizations towards more sustainable and financially resilient futures. 

pdf/the-impact-of-sustainability-practices-on-the-financial-1fgeeiwpat.pdf

The Impact of Sustainability Practices on the Financial Performance of Listed Companies in Saudi Arabia

The present study investigated the relationship between sustainable development practices and corporate financial performance. The study adopted ‘ex-post facto’ research design. Data used for the study were sourced from annual reports and financial statements of thirty-four quoted companies selected from Agriculture, Basic materials, Consumer goods, Consumer services, Financial services, Health care, ICT, Industrials and the Oil and gas sectors of the Nigerian economy for the period 2011 to 2015. Content analysis was used to construct the sustainable development index. Multiple regression analysis techniques run on SPSS version 23 was used to test the hypotheses formulated in this study. Findings revealed a negative relationship between return on equity and sustainable development practices. A significant positive relationship was shown to exist between sustainable development practices and firm size, implying that firms with larger total assets adopt more sustainable development practices. No significant relationship was established between earnings per share and corporate sustainable development practices. The study recommended that corporate sustainability reporting be made compulsory through legislation, and the government should grant tax credit and other incentives to corporate entities that engage in sustainability practices to encourage them to contribute more to the much needed sustainable development. Original Research Article Dibia and Nwaigwe; AJEBA, 7(1): 1-13, 2018; Article no.AJEBA.40995 2

/pdf/sustainable-development-practices-and-corporate-financial-3l4te5675d.pdf

Sustainable Development Practices and Corporate Financial Performance: A Survey of Selected Quoted Companies in Nigeria

The focus of this study was to provide research-basedevidence on the influence of certain variables on dividend policy using Nigerian banks. Specifically, the study examines the effects of profitability, firm size, leverage and previous levels of dividend payout on dividend policy. Using fifteen banks with data period spanning 2006-2013 and employing the fixed effects regression estimates, our results show the effect of profitability on dividend policy, we found that ROA is positive and significant at 5%. The positive sign as expected suggests that profitable firms will pay dividends. However, the possibility of an inverse relationship as observed for ROE is also likely in two scenarios; (i) In situations where less cash flow is expected in the future a firm pays less and (ii) where the firm has investment opportunities. Firm size (FSIZE) is positive and significant at 5%. Leverage (LEV) appeared negative and also significant in line with aprori expectation. Previous period dividend {DIV (-1)} is positive though not significant at 5%. The study recommends that no doubt companies have corporate incentives to engage in dividend announcements and since the market value responds favourably. However, the study recommends further especially for the benefits of potential investors that given the widespread abuse of Dividends amongst companies it is increasingly becoming difficult to distinguish between "good" and "bad" companies solely by depending on which is paying dividends and hence investors should also border to investigate the company's fundamentals. Original Research Article Dibia; ACRI, 15(2): 1-13, 2018; Article no.ACRI.44463 2

/pdf/determinants-of-dividend-policy-in-nigerian-banks-1zq4vq4873.pdf

Determinants of Dividend Policy in Nigerian Banks

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Sustainable Development Practices and Corporate Financial Performance: A Survey of Selected Quoted Companies in Nigeria

Determinants of Dividend Policy in Nigerian Banks