Ali M Fatemi

Yes, dividends are disappearing: Worldwide evidence

Ali M. Fatemi et al. — Wed, 16 Nov 2011 12:10:20 PST

This study examines the patterns in payout policies worldwide. Utilizing data from a sample of more than 17,000 companies from 33 different countries, we find evidence in support of a significant worldwide decline in the propensity to pay dividends. Most of the decline is due to the payout policies of smaller and less profitable firms with comparatively more investment opportunities. We find that larger firms, those with higher profitability, and firms with low growth opportunities have a greater propensity to pay dividends. The proportion of dividend payers varies substantially across industries as well. However, the proportion of firms paying dividends has declined over time, even after firms’ characteristics have been controlled for. Moreover, aggregate dividends are highly concentrated in that they are paid only by a small group of firms. Our findings indicate that there has been a significant decline in the average dividend payout ratios over the years. The decline in the mean dividend payout ratios as well as the proportion of payers is much more pronounced in civil law countries.

Yes, Dividends Are Disappearing: Worldwide Evidence

Ali M. Fatemi et al. — Thu, 09 Jul 2009 12:54:37 PDT

This study examines the patterns of payout policies worldwide. Utilizing data from a sample of more than 17,000 companies, from 33 different countries, we show that there is a significant worldwide decline in the propensity to pay dividends. Most of the decline is due to the payout policies of smaller and less profitable firms with comparatively more investment opportunities. We find that larger firms, firms with higher profitability, and firms with low growth opportunities have a greater propensity to pay dividends. The proportion of dividend payers varies substantially across industries as well. However, the proportion of firms paying dividends has declined over time, even after firms’ characteristics are controlled for. Moreover, aggregate dividends are highly concentrated, in that they are paid only by a small group of firms. Our findings indicate that there has been a significant decline in the average dividend payout ratios over the years. The decline in the mean dividend payout ratios as well as the proportion of payers is much more pronounced in civil law countries.

The Relative Valuation of Socially Responsible Firms: An Exploratory Study

Ali M. Fatemi et al. — Mon, 27 Apr 2009 13:22:47 PDT

In this paper we develop a model in support of the argument that the imposition of a “social responsibility” constraint could lead to increased profitability of the firm. To empirically test this, we compare the characteristics of firms making up the DS 400 index with that of a control group of firms not included in the DS 400. We find that socially responsible firms are, at a minimum, not dominated by their peer firms on the basis of returns. They are also not dominated by their peers on the basis of their betas, but dominate them on the basis of their degree of unique risk. Our analysis also indicates that a socially responsible orientation does not come at a cost to the shareholders. To the contrary, it appears that these firms provide their investors with risk/return opportunities that are at least equal to, and at time superior to, those provided by their peers. We find strong evidence indicating that socially responsible firms employ significantly less leverage in their capital structure. Finally, we find that firms that are added to (deleted from) the DS 400 Index experience a positive (negative) abnormal returns on the occasion of such announcements.

Determinants of Cross-Border Listings: The Dutch Evidence

Ali M. Fatemi et al. — Mon, 27 Apr 2009 08:09:46 PDT

Determinants of Cross-Border Listings: The Dutch Evidence

Ali M. Fatemi et al. — Thu, 23 Apr 2009 15:22:29 PDT

Pyramiding: A Profitability Test

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:27:55 PDT

A Simulation Model of Corporate Debt Maturity Structure: An Application of Response Surface Methodology

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:24:15 PDT

Interaction of Financial Policies and Firm Goals in Management Controlled and Owner Controlled Firms

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:22:09 PDT

An Empirical Analysis of the Use of Market Timing in Strategic Corporate Acquisition Planning

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:18:22 PDT

How to use Akaike Criterion to Automatically Specify and Construct Box Jenkins Models

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:16:00 PDT

Exporting Problems of Small and Medium Size Firms: A Survey

Ali M. Fatemi — Thu, 26 Mar 2009 15:11:02 PDT

Purchasing Power Parity and the Efficiency of Foreign Exchange Markets: A Revisitation

Ali M. Fatemi — Thu, 26 Mar 2009 15:09:46 PDT

Student Evaluation of Instructors: Investment or Moral Hazard?

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:08:25 PDT

Evidence Supporting Share¬holder Wealth Maximization in Management Controlled Firms

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:03:57 PDT

A Comparison of Econometric, Time Series, and Composite Forecasting Methods in Predicting Accounting Variable

Ali M. Fatemi et al. — Thu, 26 Mar 2009 15:00:12 PDT

A Financial Comparison of the Japanese and the U.S. Manufacturers

Ali M. Fatemi et al. — Thu, 26 Mar 2009 14:54:11 PDT

This paper compares and contrasts the financial policies of Japanese and comparable U.S. manufacturing firms on the basis of 15 financial ratios. The findings indicate that there are significant differences between these two groups in 10 out of the 15 ratios investigated.

Financial Planning and Performance: An Empirical Investigation

Ali M. Fatemi et al. — Thu, 26 Mar 2009 14:49:33 PDT

Shareholder Benefits from Corporate International Diversification

Ali M. Fatemi — Thu, 26 Mar 2009 14:47:05 PDT

This study provides further evidence on the rates realized by the shareholders of multinational firms relative to those of purely domestic firms. The results indicate that the risk-adjusted returns realized by the shareholders are identical across the two groups except where the MNC operates in competitive foreign markets. In that case, MNC shareholders experience negative abnormal returns. The study also provides further evidence on the risk-reduction effect of international diversification. The results fail to support the hypothesis that the beta is a convex function of the degree of international involvement. Finally, the paper provides some preliminary evidence on the effect of corporate international diversification on shareholders’ returns. It is found that abnormal returns rise by some 18 percent during the 14 months preceding the initial foreign diversification.

A Model of Forecasting Foreign Exchange Controls

Ali M. Fatemi et al. — Thu, 26 Mar 2009 14:39:31 PDT

The Yen and the Dollar: Their Purchasing Power Parity in Efficient Markets

Ali M. Fatemi — Thu, 26 Mar 2009 14:37:30 PDT