TY - JOUR
T1 - Ceo overconfidence and dividend policy
T2 - Evidence from tiger cub economies
AU - Chee, C. M.
AU - Ab Razak, N. H.
AU - Wong, D. H. T.
N1 - Publisher Copyright:
© 2019, Associated Management Consultants Pvt. Ltd.. All rights reserved.
PY - 2019/10
Y1 - 2019/10
N2 - This study aimed to investigate the effect of CEO overconfidence and dividend policy in Tiger Cub Economies which are Indonesia, Malaysia, Philippines, Thailand, and Vietnam. This research also examined the determinants of dividend policy that includes lagged dividend payment, firm size, growth, profitability, free cash flow, leverage, and liquidity. A sample of 232 public listed firms was selected from Tiger Cub Economies for the data period ranging from 2012 to 2016. Using system generalized method of moment (GMM) estimation, a negative relationship was found between dividend payment and CEO overconfidence, a finding that is consistent with the findings of past research. Moreover, the research finding was robust when a more stringent measure of CEO overconfidence was adopted. Other significant determinants of dividend payment were asset growth, firm leverage, earnings growth, and firm size. The findings indicated reduction in dividends associated with CEO overconfidence in firms with declining asset growth, lower firm leverage, higher earnings growth, and largerfirm size.
AB - This study aimed to investigate the effect of CEO overconfidence and dividend policy in Tiger Cub Economies which are Indonesia, Malaysia, Philippines, Thailand, and Vietnam. This research also examined the determinants of dividend policy that includes lagged dividend payment, firm size, growth, profitability, free cash flow, leverage, and liquidity. A sample of 232 public listed firms was selected from Tiger Cub Economies for the data period ranging from 2012 to 2016. Using system generalized method of moment (GMM) estimation, a negative relationship was found between dividend payment and CEO overconfidence, a finding that is consistent with the findings of past research. Moreover, the research finding was robust when a more stringent measure of CEO overconfidence was adopted. Other significant determinants of dividend payment were asset growth, firm leverage, earnings growth, and firm size. The findings indicated reduction in dividends associated with CEO overconfidence in firms with declining asset growth, lower firm leverage, higher earnings growth, and largerfirm size.
KW - Behavioral corporate finance
KW - CEO overconfidence
KW - Dividend policy
KW - Managerial overconfidence
UR - http://www.scopus.com/inward/record.url?scp=85079614400&partnerID=8YFLogxK
U2 - 10.17010/ijf/2019/v13i10/147746
DO - 10.17010/ijf/2019/v13i10/147746
M3 - Article
AN - SCOPUS:85079614400
SN - 0973-8711
VL - 13
SP - 34
EP - 48
JO - Indian Journal of Finance
JF - Indian Journal of Finance
IS - 10
ER -