Signalling, financial hierarchy and agency theory as explanations for dividend behaviour: evidence from Italian firm data

Article Abstract:

A model of managerial decisions on dividend declarationsof Italian firms was presented. Firms may either increase or decrease dividendsdepending on their financial performance. Dividend reduction could be beneficial to both stockholders and the firm since taxes would be lessened and profits would be reinvested. The components of informational content and agent costs in the Italian corporate environment were also discussed. The significantfindings of the model are that Italian firms react faster when they are forced to lessen dividends and that the pay-out ratio for quoted firms are substantially higher than non-quoted firms.

Italy, Dividends, Corporations, Italian

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Extent of diversification and company performance: the New Zealand evidence

Article Abstract:

The impact of diversification policies on the financial performance of New Zealand companies was studied. Data from firms listed in the New Zealand Stock Exchangefrom 1975 to 1985 with assets valued from $NZ1.8 million to 4.4 billion were analyzed. The components of financial performance considered were return on equity, return on assets, increase in sales, firm size, risk, financial leverage, technical opportunity, industry concentration and government protection. It was concluded that firms with related-diversified strategies hadsuperior financial performance than firms with other strategies.

New Zealand, Diversification in industry, Industrial diversification, Corporate profits, Corporations, New Zealand

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A note on fixed costs and the profitability of depository intermediaries

Article Abstract:

Distributional intensity in a given market is essential in determining profitability in depository institutions. Pooled data from banks and savings and loan associations show a significant quadratic relationship between the number of offices in a market and return on assets without relation to efficiency or collusion arguments. Perceiving banks and thrifts as perfect substitutes yield different results as compared with methods that comprise only banks.

Commercial Banks, Commercial Banking, Savings & Loan Assns, Savings Institutions, Banking industry, Analysis, Profit, Savings and loan associations, Overhead costs

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