Are Socially Responsible Banks More Risk Averse and Dividends Providers?Empirical Evidence from a Developing Economy

Purpose:This study examines whether socially responsible firms are uninterested in risk-taking and whether socially responsible banks are more dividend providers than socially irresponsible ones.We conducted the analysis using the least-squares method for 290-panel data observations of 32 commercial banks operating in Bangladesh from 2008 to 2018.Methodology:We employed Ordinary Least Squares Regression for 290-panel data observations of 32 commercial banks operating in Bangladesh from 2008 to 2018 using EViews software version-8.Moreover,we conducted descriptive analysis and correlations using SPSS software.We considered CSRI and CSRPI as the indicators of corporate social responsibility,dividend per share and stock dividend as a proxy of dividend policy,LEV(leverage),and non-performing loan to total loan as the indicators of financial risk,and lastly,Z score as the indicator of financial stability.Findings:Studies have shown that banks prioritizing social responsibility tend to pay dividends to their shareholders more frequently and consistently than banks that do not.In particular,banks that invest heavily in corporate social responsibility(CSR)tend to maintain a stable dividend payout,which can help address agency problems that arise from overinvestment in the CSR sector.Additionally,we found that banks that make huge expenditures on CSR also seem to have a low eagerness for risk-taking.Again,we found that the financial stability of a socially responsible bank is high and stable enough,which will help efficiently handle the bank’s financial risks,reduce price fluctuations,and increase financial assets that generally influence a bank’s monetary stability.Implications:Banks implementing fruitful CSR strategies can produce substantial shareholder advantages through high dividend payout levels.An expansion in CSR-related expenditure does not prompt a cut-down or reduce the portion of income paid out as dividends to shareholders.Therefore,the Output of our study will help provide critical information and a thorough understanding of corporate social responsibility and its association with the dividend policy,risk,and financial stability in the banking sector.This will also be useful to the researcher,students,and corporate policymakers while making a critical decision about whether a firm should make expenditures on CSR purposes,how it impacts a firm’s dividend decision,and its connection with its overall risk and financial stability.According to the study,corporate social responsibility should be integrated into a firm’s mission and strategy rather than appearing to be a mere act of generosity.Originality/Value:This study uniquely considers CSR,dividend policy,risk,and financial stability simultaneously in a developing country.Besides,the three-dimensional measures of CSR used in the research focused on developing the economy are a precious contribution.

“China Shock”or China Dividend?-China GVC Participation’s Effects on Trading Partners’Technological Progress

This paper explores the effects of China’s global value chain(GVC)participation on technological progress in trading-partner countries based on estimated data on value-added trade between China and 52 trading partners.We find that,first,although China’s exports lowered the total factor productivity(TFP)of its trading partners(competitive effect),its imports greatly increased trading partners’TFP(effect of scale).This implies that China’s GVC participation is beneficial to its trading partners’technological progress in the form of a considerable technology dividend effect.Second,China’s export dividend effect compensates for the negative effect of Chinese competition on trading partners’technological progress;the innovation effects attributable to China’s imports reinforce the positive effects of scale on technological progress.When innovation is factored in,the China dividend thus becomes further reinforced.Third,China’s merchandise imports have a diminishing positive effect on technological progress in trading partners as geographical distance increases,but trade in services transcends geographical boundaries,and the positive technological progress effect of China’s service imports do not diminish as distance increases.We find that the“China dividend”from China’s GVC participation is a significant contributor to technological progress in partner nations,and China’s imports are conducive to innovation and technological progress in developed countries in the long run.

ON DE FINETTI'S OPTIMAL IMPULSE DIVIDEND CONTROL PROBLEM UNDER CHAPTER 11 BANKRUPTCY

Motivated by recent advances made in the study of dividend control and risk management problems involving the U.S.bankruptcy code,in this paper we follow[44]to revisit the De Finetti dividend control problem under the reorganization process and the regulator's intervention documented in U.S.Chapter 11 bankruptcy.We do this by further accommodating the fixed transaction costs on dividends to imitate the real-world procedure of dividend payments.Incorporating the fixed transaction costs transforms the targeting optimal dividend problem into an impulse control problem rather than a singular control problem,and hence computations and proofs that are distinct from[44]are needed.To account for the financial stress that is due to the more subtle concept of Chapter 11 bankruptcy,the surplus process after dividends is driven by a piece-wise spectrally negative Lévy process with endogenous regime switching.Some explicit expressions of the expected net present values under a double barrier dividend strategy,new to the literature,are established in terms of scale functions.With the help of these expressions,we are able to characterize the optimal strategy among the set of admissible double barrier dividend strategies.When the tail of the Lévy measure is log-convex,this optimal double barrier dividend strategy is then verified as the optimal dividend strategy,solving our optimal impulse control problem.

Reform Dividends and Economic Convenience

Reform dividends refer to the improvements in certain economic actors under the new, reformed institutional system as compared against the original system. Reform leads to greater economic growth potential by changing the institutional environment, which in turn increases the vibrancy and innovation of economic actors. The most economically convenient system is also in actuality the most effective market economic system. Reform based on public and collective actions should be based on the following principle： if institutional reform is evolving towards the enhancement of economic convenience, then we can be sure that reform is embarking on the path of releasing dividends.

EXPECTED PRESENT VALUE OF TOTAL DIVIDENDS IN THE COMPOUND BINOMIAL MODEL WITH DELAYED CLAIMS AND RANDOM INCOME

In this paper, a compound binomial model with a constant dividend barrier and random income is considered. Two types of individual claims, main claims and by-claims, are defined, where every by-claim is induced by the main claim and may be delayed for one time period with a certain probability. The premium income is assumed to another binomial process to capture the uncertainty of the customer＇s arrivals and payments. A system of difference equations with certain boundary conditions for the expected present value of total dividend payments prior to ruin is derived and solved. Explicit results are obtained when the claim sizes are Kn distributed or the claim size distributions have finite support. Numerical results are also provided to illustrate the impact of the delay of by-claims on the expected present value of dividends.

A BLACK－SCHOLES FORMULA FOR OPTIONPRICINGWITHDIVIDENDS

We obtain a Black Scholes formula for the arbitrage free pricing of European Call options with constant coefficients when the underlying stock generates dividends. To hedge the Call option, we will always borrow money form bank. We see the influence of the dividend term on the option pricing via the comparison theorem of BSDE(backward stochastic differential equation,). We also consider the option pricing problem in terms of the borrowing rate R which is not equal to the interest rate r. The corresponding Black Scholes formula is given. We notice that it is in fact the borrowing rate that plays the role in the pricing formula.

Periodic dividends and capital injections for a spectrally negative Lévy risk process under absolute ruin

The spectrally negative Lévy risk model with random observation times is considered in this paper,in which both dividends and capital injections are made at some independent Poisson observation times.Under the absolute ruin,the expected discounted dividends and the expected discounted capital injections are discussed.We also study the joint Laplace transforms including the absolute ruin time and the total dividends or the total capital injections.All the results are expressed in scale functions.

On the Expected Present Value of Total Dividends in a Risk Model with Potentially Delayed Claims

In this paper, we consider a risk model in which two types of individual claims, main claims and by-claims, are defined. Every by-claim is induced by the main claim randomly and may be delayed for one time period with a certain probability. The dividend policy that certain amount of dividends will be paid as long as the surplus is greater than a constant dividend barrier is also introduced into this delayed claims risk model. By means of the probability generating functions, formulae for the expected present value of total dividend payments prior to ruin are obtained for discrete-type individual claims. Explicit expressions for the corresponding results are derived for K n claim amount distributions. Numerical illustrations are also given.

The Asian Option Pricing when Discrete Dividends Follow a Markov-Modulated Model

This paper is concerned with the pricing problem of the discrete arithmetic average Asian call option while the discrete dividends follow geometric Brownian motion. The volatility of the dividends model depends on the Markov-Modulated process. The binomial tree method, in which a more accurate factor has been used, is applied to solve the corresponding pricing problem. Finally, a numerical example with simulations is presented to demonstrate the effectiveness of the proposed method.

Extracting Information on Implied Volatilities and Discrete Dividends From American Option Prices

This paper deals with options on assets, such as stocks or indexes, which pay cash dividends. Pricing methods which consider discrete dividends are usually computationally expensive and become infeasible when one considers multiple dividends paid during the option lifetime. This is the case of long-term options and options on indexes. The first purpose of this paper is to assess efficient and accurate numerical procedures which yield consistent prices for both European and American options when the underlying asset pays discrete dividends. The authors then analyze some methodologies to extract information on implied volatilities and dividends from quoted option prices. Implied dividends can also be computed using a modified version of the well-known put-call parity relationship. This technique is straightforward, nevertheless, its use is limited to European options, and when dealing with equities, most traded options are of American type. As an alternative, the numerical inversion of pricing methods, such as efficient interpolated binomial method, can be used. This paper applies different procedures to obtain implied volatilities and dividends of listed stocks of the Italian derivatives market （IDEM）.

Modelling Correlation between Shareholders Dividends and Corporate Performance in Nigeria

This study examined the modeling correlation between shareholders dividend and corporate performance in Nigeria.The study employed the ex post-facto research design.To obtain answers on the research questions and to test the hypotheses formulated,data were obtained from annual reports of companies listed on the floor of the Nigeria Stock Exchange(NSE)that disclosed a comparative statement for the period of 2010 to 2016.The data collected were analyzed using descriptive statistics.Specifically,simple regression analysis and paired sample t-test statistics were used to analyze the data.The results showed that there is no significant correlation between shareholders dividend payout and the explanatory variables in the model.These results taken as a whole indicate that banks pay dividend in Nigeria with the intention of reducing the agency conflict and maintaining firms'reputation.The study recommended that since the payment of dividend indicates the firm having a good earnings capacity,management should maintain a steady increase in earnings,cash flow,and dividend payment and establish a dividend policy that can be acceptable by various stakeholders.

International Financial Investments, Double Taxation of Dividends and ＂Effective Taxation＂ in the Portuguese Tax System

The purpose of this paper is to analyze the tax treatment of dividends established in the Portuguese corporate income tax code. The tax code aims at eliminating double taxation, if certain conditions are met. However, if dividends received were not previously subject to effective taxation, the elimination of double taxation no longer applies. The meaning of effective taxation is not defmed nor quantified in the code. But it is of great importance to firms＇ tax planning. In this context, it is a quite important concept, and the paper will discuss it. The methodological approach is based on using a hypothetical situation where a group of finns＇ faces different dividend flows, from diverse origins, and how taxes affect the overall tax burden of the group. The paper highlights the negative implications of a legal void in a very important tax topic regarding dividend policy in holding companies. It shows a tax induced level of uncertainty in designing dividend policy, and how it hinders financial management of groups of firms. The main conclusion is that the lack of a legal or quantitative definition of what constitutes effective taxation is an important factor of tax complexity in planning intercompany dividend policy, and the concept should be revised in legal terms.

A Study on the Behavior of Large Stock Dividends and Stock Splits Among Chinese Listed Companies： A Case Study on Zoomlion＇s 2010 Middle-Term Stock Dividend Plan

This paper takes Zoomlion （Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd） as an example and illustrates the reasons why traditional theories of stock dividends and stock splits cannot rationally explain the large stock dividend and stock split behavior among Chinese listed companies. The paper offers the following points after analyzing the current situation of China＇s capital market： As many investors seek after the stocks with large stock dividends and stock splits and form a ＂herd effect＂, it greatly pushes up the price of these stocks. Thus, companies＇ managers can cater these investors＇ irrational behavior, and help their companies get more funds from secondary equity offerings, or help their large shareholders and institutional investors to obtain more returns after lifting the sell restriction on their shares.

The Effect of Dividends and Earnings per Share on the Stock Market Value by Moderating Bank Size

The aim of this study was to investigate the effect of dividend distributions and earnings per share by moderating bank size as measured by its total assets on the stock market value of banks operating in Jordan during the period between 2011 and 2016.The hypotheses of the study were tested based on multiple and hierarchical regression method.The most important result of the study is that the earnings per share is the strongest variable that helps in predicting the stock market value of the bank shares,in addition to the significant effect of bank size as measured by its total assets.

Equilibrium dividend strategies in the dual model with a random time horizon

This paper investigates the dividend problem with non-exponential discounting in a dual model.We assume that the dividends can only be paid at a bounded rate and that the surplus process is killed by an exponential random variable.Since the non-exponential discount function leads to a time inconsistent control problem,we study the equilibrium HJB-equation and give the associated verification theorem.For the case of a mixture of exponential discount functions and exponential gains,we obtain the explicit equilibrium dividend strategy and the corresponding equilibrium value function.Besides,numerical examples are shown to illustrate our results.

Harnessing Demographic Dividends

THE history of all developed economies and even the emerging ones have been their abilities to harness human resource into capital and use its diverse multiplier effects to create value chains spanning all other resources categories. In addition, this process unleashes outcomes that include a rise in national economic aggregates and more importantly, improved quality of living standards for citizens.

Still Reaping Dividends

CHINA’S sustained and fast economic development in the past decades has made great contributions to the progress and prosperity of the global economy,particularly to the stabilization and development of Africa’s economy.

企业数字化转型如何影响现金股利政策:“信息面”还是“资金面”

近年来,数字化转型已成为企业高质量发展的必由之路,数字化转型是否以及如何影响企业财务决策成为一个新兴而重要的研究话题。本文以2010—2020年A股上市公司为样本,基于现金股利视角对此展开研究。结果表明,企业数字化转型显著降低了现金股利,其作用路径为“资金面”(改变资金安排),而非“信息面”(改变业绩预期与透明度)。具体而言,存在两种效应支持“资金面”作用路径。其一为“挤出”效应,它表现为企业数字化转型不仅需要在其中投入大量资金,还通过提高并购、研发等投资支出“挤出”现金股利。在该效应下,数字化转型对现金股利的负向作用仅在成长型、非国有等资金相对紧张的企业中显著。其二为“替代”效应,它表现为企业数字化转型通过提高代理效率,对现金股利的治理功能产生替代,使企业出于节约资金的目的削减现金股利。在该效应下,数字化转型对现金股利的负向作用仅在内外部监督较强的企业中显著。进一步研究发现,数字化转型促使企业将更多的留存收益用于非股利支出,这再次验证了“资金面”作用路径。总之,本文全面地分析了企业数字化转型对现金股利政策的影响及其理论解释,在理论上为企业数字化转型以及股利政策研究提供了新视角,在实践上则有助于企业数字化转型与财务决策的统筹安排,促进数字经济健康发展。

中国式第二次人口红利:理论探究与治理选择

随着全球范围内人口老龄化程度不断加深,传统人口红利逐渐式微,第二次人口红利理论的提出为人口老龄化背景下的经济增长开拓了新视角。中国式第二次人口红利理论的核心观点是人口质量的提升可以部分抵消由人口老龄化导致的劳动年龄人口持续减少带来的负面影响,并且在科学技术快速发展和广泛应用的大趋势下,能够充分发挥各年龄段尤其是年长劳动人口的人力资源潜能,重构社会经济生产方式,最终促进国民经济的持续稳定增长。我国正处于能够实现中国式第二次人口红利的发展阶段并具备将其兑现的现实条件。实现中国式第二次人口红利需要政策制定者基于正确认识人口红利相关理论、把握未来中国人口长期动态、秉持供给侧和需求侧双管齐下等人口治理策略,对社会和市场进行有效政策指引,在人口老龄化的大趋势下实现社会经济的持续稳定发展。

青年强则国强:青年人口学前瞻与优化青年人口发展

从当年梁启超发出历史呼号“少年强则国强”、李大钊提出“青春中华之创造”到如今党的二十大报告发出时代强音“青年强,则国家强”,显示了一脉相承的青少年与国家发展联系紧密的认识逻辑。本文回顾和界定了青年及青年人口学的内涵,认为青年可定义为“风险型人口”和“资源型人口”两大类,继而讨论了“青年强”的三重含义,即青年人口储备充足、青年人口素质卓越和青年人口红利丰厚,充分诠释了“青年强,则国家强”时代命题的深刻内涵。概言之,人尽其才则“青年强”,才尽其用则“国家强”。本文从国际比较的视角阐述了我国青年人口发展面临的问题和挑战,突出表现为:中国未来青年人口数量将长期处于缩减状态;青年人口的科学文化素质、身体健康素质和思想素质都有待“提质增效”;就业不充分,青年人口红利没有被充分释放。因此,要优化青年人口发展、进一步增强青年力量,采取相应的对策来强化青年人口储备、优化青年人口素质、极化青年人口红利、激发全人口活力。在人口负增长时代,建设适宜青年生存与发展的青年友好型社会极为必要,把解决青年问题作为解决低生育率等社会人口问题的重要突破口迫在眉睫。