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Record W7116974069 · doi:10.35808/ijeba/909

Are Dividends Signaling the Earnings Quality? Evidence from Canada

2025· article· W7116974069 on OpenAlexaboutno aff
Imen Mahfoudh

Bibliographic record

VenueInternational Journal of Economics and Business Administration · 2025
Typearticle
Language
FieldBusiness, Management and Accounting
TopicAuditing, Earnings Management, Governance
Canadian institutionsnot available
Fundersnot available
KeywordsEarningsDividendWork (physics)Debt

Abstract

fetched live from OpenAlex

Purpose:The purpose of this research is to investigate the informativeness of dividend payouts with respect to the earnings quality.Design/methodology/approach: A sample of 756 firm-year observations listed on the TSX 300 index during 14 years, from 2011 to 2024, was examined.The quality of earnings was estimated by the accrual-based earnings management and the real earnings management.Findings: Results show that dividend-paying Canadian firms and those with high dividend payouts exhibit higher quality in discretionary accruals but poorer quality in abnormal real earnings management.Neverthless, no significant association was found between increases in the dividend payout ratio and earnings quality. Research implications:The results confirm that dividend signaling theory exhibits certain weaknesses.They show that it is limited in its ability to detect sophisticated forms of earnings management, namely real earnings management.Consequently, while dividend distributions reassure the firm's stakeholders about the authenticity of the financial statements and the absence of accounting manipulations, they do not provide absolute assurance against hidden operational manipulations.Originality/value: This study adds to the empirical literature on the informativeness of dividend payouts by examining whether the dividend policy of a firm could be an indicator of its earnings quality.To the best of our knowledge, no previous study has examined the relationship between the dividend payouts and the real earnings management and this is the first study that examines, in the Canadian context, the effect of the dividend payouts on the earnings management quality.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.001
metaresearch head score (Gemma)0.011
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesMetaresearch, Meta-epidemiology (narrow), Scholarly communication
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.221
Threshold uncertainty score1.000

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0010.011
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0020.003
Open science0.0010.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.025
GPT teacher head0.259
Teacher spread0.234 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2025
Admission routes1
Has abstractyes

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