Financial centers, analyst following, and dividend policy : evidence from an emerging market
Dissertant
Thesis advisor
University
Al Akhawayn University
Faculty
The School of Business Administration
University Country
Morocco
Degree
Master
Degree Date
2011
English Abstract
Manuscript Type: Empirical Research Question/Issue: Is location in the financial center of a country a significant determinant of analysts’ decision to cover/follow a firm? Does the extent of analyst coverage result in different dividend payout ratios for companies located in the financial center and firms located elsewhere? This paper seeks to answer these questions within the context of emerging markets.
Research Findings/Insights: Using a dataset India, from 2005 to 2009, we show a significantly higher analyst following for firms that are situated in the financial center.
Our results are robust after controlling for different firm-specific characteristics and within different sub-samples.
We, further, show that increased analyst following/coverage of firms in the financial center result in higher dividend payout ratios of these firms compared to firms located elsewhere.
We show that the gap present between payout ratios of firms located in Bombay and the other companies increases as the extent of analyst following goes up.
Theoretical/Academic Implications: our results identify an important and new variable, location, which should be considered when studying dividend policies in emerging markets.
Since dividend policies constitute an important corporate decision making, it is necessary for academicians to study every aspect influencing dividends.
Practitioner/Policy Implications: our results are important in a way that they highlight the importance of financial centers in emerging markets.
Whether a firm is located in financial centers or elsewhere has implications on how high dividends are set by a specific firm.
This, definitely, narrows the set of potential firms for investors to consider.
Local as well as foreign investors save time, money and energy by considering only those firms that are located in financial centers and pay high dividends
Main Subjects
No. of Pages
29
Table of Contents
Table of contents.
Abstract.
[Chapter One] : Introduction.
[Chapter Two] : Motivation and dackground.
[Chapter Three] : Data.
[Chapter Four] : Methodology.
[Chapter Five] : Implications of results.
[Chapter Six] : Conclusion.
References.
American Psychological Association (APA)
Kamri, Zaynab. (2011). Financial centers, analyst following, and dividend policy : evidence from an emerging market. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-628442
Modern Language Association (MLA)
Kamri, Zaynab. Financial centers, analyst following, and dividend policy : evidence from an emerging market. (Master's theses Theses and Dissertations Master). Al Akhawayn University. (2011).
https://search.emarefa.net/detail/BIM-628442
American Medical Association (AMA)
Kamri, Zaynab. (2011). Financial centers, analyst following, and dividend policy : evidence from an emerging market. (Master's theses Theses and Dissertations Master). Al Akhawayn University, Morocco
https://search.emarefa.net/detail/BIM-628442
Language
English
Data Type
Arab Theses
Record ID
BIM-628442
