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practitioners, researchers or anybody who are interested to explore more on dividends
may find the ideas and conduct a further research for several topics below:
•
The relationship between bond prices and dividends changes
Author
here
re-quotes research
result
of
Dhillon
and
Johnson
(1994)
which
said
that
bond
prices
decline
when
dividends
are
increased, whereas
bond
prices
increase when dividends decrease.
•
The share price response to straight debt issues
According to
Johnson
(1995)’s
research,
average
share
price
response
to
announcement
of
straight
debt
issues
is
significantly
positive
for
low
dividend
payout firms, and insignificantly different for high dividend payout firms.
•
The relationship between dividends payout and firms’ growth
Johnson
(1995)
classified sample
on
his
research
by
growth
because
firms
choosing to
pay
low dividends and
retain
their
internal
funds
may
be
more
likely
to be growth firms
•
The relationship
between
investment
rates and dividends;
future growth
opportunities and dividends; and debts constraints and dividends
These
are
remaining
three
of
four
fundamental
factors
expressed
by
Aivazian
et
al.
(2006) that
are
not
included
in
this
research paper.
Those
factors are
expected
to influence dividend decision.
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