A Study On Dividend Determinants For Korea's Information Technology Firms
In this study, we analyse the determinants of dividend policies of information technology (IT) firms listed on the Korean stock market and use a logit regression model to examine Korean IT firms' propensity to pay dividends based on the life-cycle hypothesis. The analysis yields several find...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Asian Academy of Management (AAM)
2014
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| Subjects: | |
| Online Access: | http://eprints.usm.my/40021/ http://eprints.usm.my/40021/1/AAMJAF_10-2-1_%281-12%29.pdf |
| _version_ | 1848878906677919744 |
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| author | Sungsin Kim, Sungsin Kim Ji , Yong Seo |
| author_facet | Sungsin Kim, Sungsin Kim Ji , Yong Seo |
| author_sort | Sungsin Kim, Sungsin Kim |
| building | USM Institutional Repository |
| collection | Online Access |
| description | In this study, we analyse the determinants of dividend policies of information technology
(IT) firms listed on the Korean stock market and use a logit regression model to examine
Korean IT firms' propensity to pay dividends based on the life-cycle hypothesis. The
analysis yields several findings: first, the firms pay relatively small dividends in the
growth stage, which increase over time as their businesses mature. Second, profitability
shows a positive correlation with propensity to pay dividends. Third, firms that paid out
more dividends in the past continue to pay relatively more dividends. Meanwhile,
dividend policies do not show a significant correlation with firm size or growth
opportunities. In addition, dividend policies have no relation to the catering incentive
(investor fads for dividends) or risk. These observations suggest that Korean IT firms'
propensity to pay dividends is supported by the life-cycle hypothesis and that the
declining dividends from the mid-2000s can be attributed to deteriorating profits. |
| first_indexed | 2025-11-15T17:38:47Z |
| format | Article |
| id | usm-40021 |
| institution | Universiti Sains Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T17:38:47Z |
| publishDate | 2014 |
| publisher | Asian Academy of Management (AAM) |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | usm-400212018-04-11T03:52:07Z http://eprints.usm.my/40021/ A Study On Dividend Determinants For Korea's Information Technology Firms Sungsin Kim, Sungsin Kim Ji , Yong Seo HD28-70 Management. Industrial Management In this study, we analyse the determinants of dividend policies of information technology (IT) firms listed on the Korean stock market and use a logit regression model to examine Korean IT firms' propensity to pay dividends based on the life-cycle hypothesis. The analysis yields several findings: first, the firms pay relatively small dividends in the growth stage, which increase over time as their businesses mature. Second, profitability shows a positive correlation with propensity to pay dividends. Third, firms that paid out more dividends in the past continue to pay relatively more dividends. Meanwhile, dividend policies do not show a significant correlation with firm size or growth opportunities. In addition, dividend policies have no relation to the catering incentive (investor fads for dividends) or risk. These observations suggest that Korean IT firms' propensity to pay dividends is supported by the life-cycle hypothesis and that the declining dividends from the mid-2000s can be attributed to deteriorating profits. Asian Academy of Management (AAM) 2014 Article PeerReviewed application/pdf en http://eprints.usm.my/40021/1/AAMJAF_10-2-1_%281-12%29.pdf Sungsin Kim, Sungsin Kim and Ji , Yong Seo (2014) A Study On Dividend Determinants For Korea's Information Technology Firms. Asian Academy of Management Journal of Accounting and Finance, 10 (2). pp. 1-12. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/10-2-1-2014.html |
| spellingShingle | HD28-70 Management. Industrial Management Sungsin Kim, Sungsin Kim Ji , Yong Seo A Study On Dividend Determinants For Korea's Information Technology Firms |
| title | A Study On Dividend Determinants
For Korea's Information Technology Firms |
| title_full | A Study On Dividend Determinants
For Korea's Information Technology Firms |
| title_fullStr | A Study On Dividend Determinants
For Korea's Information Technology Firms |
| title_full_unstemmed | A Study On Dividend Determinants
For Korea's Information Technology Firms |
| title_short | A Study On Dividend Determinants
For Korea's Information Technology Firms |
| title_sort | study on dividend determinants
for korea's information technology firms |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/40021/ http://eprints.usm.my/40021/ http://eprints.usm.my/40021/1/AAMJAF_10-2-1_%281-12%29.pdf |