| dc.description.abstract | The business with administrative separation between ownership and management
causes information asymmetries. The management which means the administrators is
more informed than the shareholders. It, therefore, is possible that the administrative
decision was done aiming at the benefits of the management. This, therefore, increases
examination cost. The objectives of this study were to find decisive trends to pay dividend
and dividend amount according to signaling theory and to discover how to reduce agency
costs from cash flow. The study was done using Panel Data with all listed companies on
the Stock Exchange of Thailand, except for the financial industries, between the years
2009-2013. The Panel Random-Effects Tobit was used as the estimator.
The study showed that the companies with firm value, profitability and high
dividend paid in the past year have positive relation with the dividend payout ratio just as
the result of Robustness test of companies with high dividend payments. Meanwhile, the
companies with debt obligation have negative relation with the dividend payout ratio. The
result of this study can signal the decisive trends to pay dividend and dividend payout
ratio in order to decrease the information asymmetries. For those companies with free
cash flow and mechanisms for corporate governance of major shareholders, it was found
that there was positive relation of dividend payout ratio. This causes reduction in agency
cost. Moreover, it was found that the tenure of positions of the independent directors of 15
years or more has negative relation to dividend payout ratio. And this makes it unable to
reduce agency cost.
The result of this study helps the investigators or the shareholders evaluate the
trends to pay dividends and dividend payout ratio. Moreover, it helps the management
determine dividend policy consistent with business achievement. It can also be used by
regulators for revising rules and regulations of ownership structure and independent
directors. | en_US |
