TY - JOUR
T1 - Dividend payment and earnings quality
T2 - Evidence from Indonesia
AU - Sirait, Febriela
AU - Siregar, Sylvia Veronica Nalurita Purnama
PY - 2014
Y1 - 2014
N2 - Purpose - This research aims to examine the relationship between dividend payment and earnings quality. Design/methodology/approach - The authors examine four dividend features: dividend-paying status, dividend size, dividend changes, and dividend persistence. The samples consist of 90 firms from the manufacturing industry in the years 2005-2009. Multiple regression is used for testing hypotheses. Findings - The results show that dividend-paying status, dividend increase, and persistence in dividend payment have significant positive association with earnings quality. However, the authors do not find evidence that larger dividend size is an indicator of higher earnings quality. Overall, the results show that dividend-paying status, increase in dividend size, and persistence in dividend payment are indicators or signals of higher earnings quality. Research limitations/implications - This study examines only the manufacturing firms listed on the Indonesia Stock Exchange. Further study based on different industries and/or different emerging markets is needed before generalizing results. Originality/value - Few studies have examined dividend payment in emerging markets. This study fills the void.
AB - Purpose - This research aims to examine the relationship between dividend payment and earnings quality. Design/methodology/approach - The authors examine four dividend features: dividend-paying status, dividend size, dividend changes, and dividend persistence. The samples consist of 90 firms from the manufacturing industry in the years 2005-2009. Multiple regression is used for testing hypotheses. Findings - The results show that dividend-paying status, dividend increase, and persistence in dividend payment have significant positive association with earnings quality. However, the authors do not find evidence that larger dividend size is an indicator of higher earnings quality. Overall, the results show that dividend-paying status, increase in dividend size, and persistence in dividend payment are indicators or signals of higher earnings quality. Research limitations/implications - This study examines only the manufacturing firms listed on the Indonesia Stock Exchange. Further study based on different industries and/or different emerging markets is needed before generalizing results. Originality/value - Few studies have examined dividend payment in emerging markets. This study fills the void.
KW - Dividend changes
KW - Dividend persistence
KW - Dividend size
KW - Dividend-paying status
KW - Earnings quality
UR - http://www.scopus.com/inward/record.url?scp=84898890783&partnerID=8YFLogxK
U2 - 10.1108/IJAIM-04-2013-0034
DO - 10.1108/IJAIM-04-2013-0034
M3 - Article
AN - SCOPUS:84898890783
SN - 1834-7649
VL - 22
SP - 103
EP - 117
JO - International Journal of Accounting and Information Management
JF - International Journal of Accounting and Information Management
IS - 2
ER -