Evidence on the Relationship Between Cash Dividend and Earnings Quality

JULIARTO, Agung (2017) Evidence on the Relationship Between Cash Dividend and Earnings Quality. Advanced Science Letters, 23 . pp. 7090-7093. ISSN 2254-2256

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Abstract

This study investigated the relationship between the distribution of cash dividends and earnings quality of nonfinancial companies listed in Indonesia Stock Exchange. The quality of earnings was measured by using the absolute value of performance-adjusted discretionary accruals (ADA). With 300 firm-year observations over the period 2011–2013, this study found that companies that pay dividends have better earnings quality than companies that do not pay dividends. Companies that pay dividends in large amounts have better earnings quality than companies that distribute dividend in small amounts. Companies that increase the size of the dividend from the previous period have better earnings quality than the companies that do not raise the size of dividend from the previous period. In addition, this study also showed that companies that have persistent dividends have better earnings quality than the companies that do not have persistent dividend payment during the period of observation.

Item Type:Article
Additional Information:Dividend-Paying Status, The Size of the Dividend, Dividend Persistence, Earnings Quality, Absolute Value of Performance-Adjusted Discretionary Accruals (ADA).
Uncontrolled Keywords:Dividend-Paying Status, The Size of the Dividend, Dividend Persistence, Earnings Quality, Absolute Value of Performance-Adjusted Discretionary Accruals (ADA).
Subjects:H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:Faculty of Economics and Business > Department of Accounting
ID Code:67278
Deposited By:Mr. Perpustakaan Fakultas Ekonomi
Deposited On:29 Nov 2018 11:15
Last Modified:29 Nov 2018 11:15

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