IPASJ International Journal of Information Technology (IIJIT)

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm

Email:editoriijit@ipasj.org
ISSN 2321-5976

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

The dynamics of the gross dividend per share

and the absolute and relative size of the
intangibles
Paula-Angela Vidracu1, Cristina Burghelea2 , si Anca Cristea3
1

Academy of Economic Studies, Bucharest, Romania

Hyperion University, 169 Calea Calarasi, District 3, Bucharest, Romania

Hyperion University, 169 Calea Calarasi, District 3, Bucharest, Romania

ABSTRACT
The importance of intangible assets represents the distinctive feature of the new economy. In the knowledge-based economies
the intangible elements of the companies become fundamental determinants of the current and the competitiveness of the
future, the same way as the value and economic growth of the company. In the new economy, the competitive advantage and
organizational performance are represented by the transition to investment in physical assets to investment in intangible assets
based on knowledge. Management activity considered as part of intangible assets, the quality of decision-making and
involvement in the economic process, increases the economic and financial performance, respectively the increase mass profits
and financial and economic rate of return. This article highlights the econometric model of the dynamics gross dividend per
share based on the absolute and relative size of the intangibles, which will provide the opportunity to identify the role of
exogenous variables included in the study results of the activity of a company. On this basis the managerial policy measures
can be substantiated. The considerations set out can provide the opportunity for a study of such a nature as to prejudice useful
information with a view to the substantiation of decisions designed to favor a progress operational and financial performance
of the operator.

Keywords: econometric modeling, gross dividend per share, the absolute and relative size, intangible assets.

1. INTRODUCTION
Non-financial information related to intangible assets has an increased importance. There is an increase in managers'
efforts to identify and explain the role of intangible assets in the process of creating added value in the company's
strategy and the need for voluntary reporting on intangible assets in order to reduce information asymmetry of the
traditional financial statements [2].
The gross dividend per share is a relative indicator that summarizes the economic and financial performance of an
operator and thereby the managerial contribution to develop the economic process. The size of the gross dividend per
share is directly determined by the size of the turnover and the net profit, the total value of intangible assets and the
efficiency of such assets.
Gross dividend per share dynamics analysis through econometric modeling provides the ability to identify the role of
exogenous variables included in the study output of a company, and on this basis to substantiate the measures of the
management policy. The economic logic also highlights that:
gross dividend per share is a synthetic result of the efficiency of the total assets of a company, and therefore the
way of economic use of intangible assets;
the size and efficiency of intangible assets, promote an influence economic reasoned on the level and relative
profitability, they have a crucial role in achieving economic and competitive financial performance and therefore
the gross dividend returns to action;
how intangible assets are used give the measure the efficiency of the managerial decision;
the economic potential of a company materialized in fixed assets, tangible, intangible and financial as well as in
the current assets, provides the support material of operation and realization of an economic useful result.

Volume 4, Issue 10, October 2016

Page 1

IPASJ International Journal of Information Technology (IIJIT)

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm

Email:editoriijit@ipasj.org
ISSN 2321-5976

The considerations set out can provide the opportunity for a study of such a nature as to prejudice useful information
with a view to the substantiation of decisions designed to favor a progress operational and financial performance of the
operator.

2. METHODOLOGY
In a language familiar to all, econometrics studies the economic measurements. It is an accomplished mix between
economics, mathematics and statistics. According to experts, is the science of mathematical modeling of existing
interdependencies that have formed between social and economic phenomena, the evolution and the change trend over
time phenomena. This discipline is founded on the basis of rigorous application of a methodology grounded in order to
study and validate a specific theory as having pillar statistics.
Mathematical modeling is a methodology to develop an abstract system based on real data, reflecting the phenomenon
or group of phenomena subject to the inquiry expressed in a synthetic simplified form.
The main objective of econometrics is the provision relating to economic theory and empirical measurement of such
theories verification through testing. The estimates of econometric modeling can verify or demonstrate certain
presumptions and can quantify the magnitude of the studied phenomena.
According to professionals in the field studies, econometrics provides a methodology of analysis based on data for
processing mass phenomena with random event. It is characterized by stability or reflected better statistical regularly
when there are a large number of observations or components that make up the studied phenomenon.
Depending on the subject, econometrics can be divided into four areas of interest for studying the socio-economic
phenomena, namely: mathematical formalization extrapolation, simulation or forecast.
The literature highlights the fact that underlying econometric methodology has the basis on one of the following
methods of enforcement: Law of Large Numbers, Theory polls, least squares, Hypothesis testing or central limit
theorem [1].
Data accounting information that will be used to perform analysis and econometric modeling of the dynamics of the
gross dividend per share relates to the business of the Christian Dior SA company, reflected in Table 1. Also this
econometric study of the dynamics of the gross dividend per share will be implemented through the development of
four distinct models, but interoperable with the results confirming the viability related, to provide a management
reasoned and statistically significant solution.

3. RESULTS
3.1Defining econometric models looking at the Systems of interdependent variables that influence the dynamics
of the gross dividend per share
Model no. 1
The correlation analysis dynamics gross dividend per share based on the net profit, the total value of intangible assets,
the net turnover will be made based on the data presented in Table 1, which refers to the period from 2002 to 2010.

Volume 4, Issue 10, October 2016

Page 2

IPASJ International Journal of Information Technology (IIJIT)

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm
Email:editoriijit@ipasj.org
ISSN 2321-5976

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

Table 1: The dynamics of economic indicators registered trader, Christian Dior S.A., needed for the econometric study
of the gross dividend per share [7]
The net
The efficiency of the use
Net profit
turnover
of the assets intangible
Gross dividend
Total intangible
(Million
accounting
assets calculated in the
per share (Euro)
net-assets
euro)
Year
(Million euro)
light of the net profit
(Million euro)
accounting
Ser01= y
Ser03 = x2
Ser02= x1
(x1/x2)
Ser04 = x3
Ser05 = x4
2002
0.78
637.00
9,006.00
13,168.00
0.070731
2003
2004
2005
2006
2007
2008
2009
2010

0.87
0.97
1.16
1.41
1.61

837.00
1,246.00
1,646.00
2,125.00
2,321.00

8,705.00
8,624.00
11,186.00
10,885.00
10,654.00

12,466.00
13,201.00
14,556.00
16,016.00
17,245.00

0.096152
0.144481
0.147148
0.195223
0.217852

1.61
1.66

2,216.00
1,900.00

11,212.00
11,370.00

17,933.00
17,745.00

0.197645
0.167106

2.11

3,262.00

11,772.00

21,123.00

0.277098

Infographics formalizing correlations between variables system under study, presented in Figure 1, Figure 2 and Figure
3 provides information suggestive, by the arrangement of the point cloud, the shape of interdependence both among Ser
01= y cu Ser 02= x1, between Ser 01= y cu Ser 03= x2, and between Ser 01= y cu Ser 04= x3.
In these circumstances opt for an equation multiple regression linear which has the general form (1):

y a bx1 cx 2 dx 3 [4].

(1)

Determination of the equation is performed using least squares and will be analytical form lawfulness statistical
dependence dynamics gross dividend per share based on the net profit, the total value of the intangible assets and the
net turnover, according to equation (2):
y -0,725240 0,000155 x1 0,00000834324 x2 0,0001075 x3 .

(2)

Figure 1 Correlogram dynamics gross dividend per share by the net profit

Volume 4, Issue 10, October 2016

Page 3

IPASJ International Journal of Information Technology (IIJIT)

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm

Email:editoriijit@ipasj.org
ISSN 2321-5976

Figure 2 Correlogram dynamics gross dividend per share based on the total amount of intangible net assets

Figure 3 Correlogram dynamics gross dividend per share based on net turnover
Estimates of multifactor model parameters defining gross dividend linear dynamics and other information econometric
results are presented in "The synoptic picture of econometric indicators representation" through the table 2, to evaluate
its level of sustainability certification econometric model.
Note: The econometric indicators representation of synoptic picture was obtained using the software Eviews
Table 2: Synoptic picture of the indicator system of representation multifactor econometric model of the dynamics of
the gross dividend per share based on the net profit, net of intangible assets and total net turnover
Dependent variable: Ser 01: y = Gross dividend per share
The method of least squares
The period of the analysis: 2002 2010; Number of observations: 9
The equation for the regression:
y a b x1 c x 2 d x3 y -0,725240 0,000155 x1 0,00000834324 x2 0,0001075 x3

Variables
Ser02: x1 = Net profit accounting b
Ser03: x2 = Total intangible net-assets

Volume 4, Issue 10, October 2016

The
standard T-Statistical
Coefficient
error of the Summary
coefficient
0,000155
9,17E-05
1,689488
8,34E-06
3,77E-05
0,221211

Probability
0,1519
0,8337

Page 4

IPASJ International Journal of Information Technology (IIJIT)

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm
Email:editoriijit@ipasj.org
ISSN 2321-5976

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

c
Ser04: x3 = The net turnover d
a

0,0001075
-0,725240

R2 = The coefficient of determination

0,985718

The corrected coefficient of determination

0,977148

Estimated standard error of the linear

regression equation
The sum of the square of the residues
Log likelihood
The statistical coefficient Durbin-Watson

0,066501
0,022112
14,26941
2,624961

2,75E-05
3,915551
0,335817
-2,159631
The average value of the
variable dependent
Estimated standard
deviation of dependent
variable
The criterion for statistical
information Akaike
The Schwarz criterion
F-Statistical Summary
Prob. (F- Statistical
Summary)

0,0112
0,0832
1,353333
0,439915
-2,282092
-2,194437
115,0270
0,000049

Model no. 2
The second econometric model expresses interdependence gross dividend per share of the net profit [5], with net
turnover and the intangible assets respectively efficiency calculated through the net accounting profit.
The mathematical configuration of Model No. 2 is suggested by the graphical representations of Figure 1, Figure 3 and
Figure 4 and has the following general form shown by the equation (3):

y -0,822976 0,00000605 x1 0,000119 x3 1,586106 x 4

(3)

In Table 3 are listed the indicators of the second econometric model representation that provides the necessary
information to assess its viability.
Table 3: Synoptic picture of the system of representation indicators multifactor econometric model of the dynamics of
the gross dividend per share based on the net profit, the net turnover and net intangible assets calculated efficiency
through the net accounting profit
The dependent variable: Ser 01: y = Gross dividend per share
Least squares
The period of the analysis: 2002 2010; Number of observations: 9
The equation for the regression:
y a b x1 c x3 d x 4 y -0,822976 0,00000605 x1 0,000119 x3 1,586106 x 4

Variables

6,05E-06

The standard
error of the
coefficient
0,000305

TStatistical
Summary
0,019827

0,000119
1,586106

3,11E-05
3,034013

3,832516
0,522775

Coefficient

Ser02: x1 = Net profit accounting

b
Ser04: x3 = The net turnover c
Ser05: x4 = The efficiency of the
intangible net assets calculated through
the net profit accounting
d
a
2
R = The coefficient of determination

-0,822976
0,986325

The corrected coefficient of determination

0,978120

Estimated standard error of the regression

equation

0,065071

Volume 4, Issue 10, October 2016

0,376861
-2,183768
The average value of the
variable dependent
Estimated standard deviation
of dependent variable
The criterion for statistical
information Akaike

Probability
0,9849
0,0122
0,6235

0,0807
1,353333
0,439915
-2,325570

Page 5

IPASJ International Journal of Information Technology (IIJIT)

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm
Email:editoriijit@ipasj.org
ISSN 2321-5976

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

The sum of the square of the residues
Log likelihood
The statistical coefficient Durbin-Watson

0,021171
14,46507
2,758517

The Schwarz criterion

F-Statistical Summary
Prob. (F- Statistical
Summary)

-2,237915
120,2125
0,000044

4. DISCUSSIONS/ANALYSIS
From research undertaken at the company Christian Dior S.A., on the dynamics of the gross dividend distribution per
share and configuration of four econometric modeling expressed by the equation for the regression, three multiple type
and a model linear, resulted in exposed indicators in table no. 4.
Table 4: The comparative results for the two models to assess their viability
The representation of the econometric
Model no. 1 Model no. 2
indicators
The coefficient of determination
0,985718
0,986325
The ratio of the correlation
0,992833
0,993139
F-Statistical Summary
Prob. (F- Statistical Summary)
Estimated standard error of the regression
equation
The relative expression standard error of
regression equation in relation to the
average endogenous variable (gross
dividend per share)
The criterion for statistical information
Akaike
The Schwarz criterion
The statistical coefficient Durbin-Watson

115,0270
0,000049
0,066501

120,2125
0,000044
0,065071

4,91%

4,81%

-2,282092

-2,325570

-2,194437
2,624961

-2,237915
2,758517

The comparative table of the results of the two econometric models offers possibility to delineate the following
conclusions:
The models developed have the following forms: mathematical model 1, the equation (1) and model 2, equation
(2).
The size of the coefficient of regression variable attached to the efficiency of the use of the net assets calculated in
the light of the net profit accounting year (x4) provides a solution better than the variable represented by the total
amount of the assets of the net intangible assets.

5. CONCLUSIONS
According to the research it is established as a variable expressing the efficiency of the use of the intangible net assets
has a decisive influence on the dynamics of the gross dividend distribution per share, in comparison with other
variables, because the coefficient of regression attached to this variable, at both models, is more than a unit and is
confirmed statistically as significantly different from the zero on the basis of the "t" Criterion, which follows a law
student distribution. Thus, by means of the statistical is shown to the satisfaction of the role of the efficiency of the use
of the intangible assets into a process, i.e. to the increase of the gross dividend per share.
The report of the correlation attests a correlation of intensity very strong between the variables considered in the
system, for the models studied, because the size of this indicator exceeds the threshold of 0.90.
The use of the F" Criterion, which follows a law of distribution Fisher, allows us to see the confirmation of statistical
indicators expressing the intensity of the correlation (the ratio of the correlation), at each of the models studied.
The size of the coefficient of determination allows as to indicate the following:
more than 98% from the amendment of the gross dividend distribution per share is determined by altering
variables exogenous considered and the difference up to 100% is caused by residual variable or influence of other
factors which are not included in the model;
the expression of the relative size of the standard error of the linear regression equation in relation to the average
value of the variable endogenous (gross dividend per share), has a height which is positioned below a threshold

Volume 4, Issue 10, October 2016

Page 6

IPASJ International Journal of Information Technology (IIJIT)

A Publisher for Research Motivation ........

Volume 4, Issue 10, October 2016

Web Site: http://www.ipasj.org/IIJIT/IIJIT.htm

Email:editoriijit@ipasj.org
ISSN 2321-5976

very restrictive of 5%, confirming the viability of their statistical if they are used in the calculation of predictable
levels for future periods of time.
"The criterion for statistical information Akaike" and "The Schwarz criterion" utility shows when they have
developed several variants of models which are subject to a decision of the optional choice of one of the most viable
[3]. The two indicators have close sizes and confirm a correct decision, or the better, the recorded values lower. In
the case of the study undertaken, models concerned may be considered comparable.
At both models The statistical coefficient Durbin-Watson " has a size which prove non-existent phenomenon of
autocorrelation of variable waste water.
In conclusion we can express with sufficient confidence and statistical support that the second model is preferably, with
viability relatively similar to the first model. By increasing the priority to the turnover of the business that settled the
economic power and the size of the economic operator and efficiency in the use of the assets of the net assets calculated
on the basis of the net profit accounting officer will get the most favorable to the dynamics of the gross dividend per
share [6].
The role of the economic impact of the intangible assets for a financial performance top is demonstrated statistically
and constitutes a safe support and founded for decision-makers in order to implement the best measures, the reason for
which the activity (managerial decision-making level) is still considered/assessed as an active asset essential for any
economic entity.

References
[1] Andrei, T., Statistic i econometrie, Economic Publishing House, Bucharest, 2003. (book style)
[2] Arvidsson, S., "Disclosure of non-financial information in the annual report: A management-team perspective", in
Journal of Intellectual Capital, Vol. 12, Issue: 2, United Kingdom, 277-300, ISSN: 1469-1930, 2011 (journal
style).
[3] Mihilescu, N., Statistic i Bazele statistice ale econometriei, Edi ia a III a, Transversal Publishing House,
Bucharest, 2015. (book style)
[4] Mihilescu, N., Statistica i bazele statistice ale econometriei, Bren Publishing House, Bucharest, 2012. (book
style)
[5] Popescu, G., H., Ciurlu, C., F., Macroeconomie, Economic Publishing House, Bucharest, 2013. (book style)
[6] Stiglitz, J., Economie, Economic Publishing House, Bucharest, 2005. (book style)
[7] www.tradeville.eu, Tradeville (2011), "Raportul companiei Christian Dior S.A. (CDI)", 17 octombrie 2011,
Reuters Knowledge, [Accessed: Nov. 2015]. (General Internet site)

AUTHOR
Paula Angela Vidracu, in 2008, I obtained a degree in The Economy of Commerce, Tourism and
Services, at the "Hyperion" University in Bucharest, Romania. Two years later, I obtained Master
degree in Accounting, in Financial Audit and Accounting Advisory specialization, at the same
university mentioned above. In 2012, I became a full professor on the Economic, administrative and
mail in High School "Hyperion" in Bucharest, Romania. Since 2011, I am a PhD student at the
Academy of Economic Studies of Bucharest, Romania, in the Accounting specialization.

Volume 4, Issue 10, October 2016

Page 7