Determinants of dividend policy

Thus, a 10% stock dividend would give a holder of ICQ shares, as additional 10 shares, whereas a 250% stock dividend would give him 250 additional shares.The declaration of dividends involves some legal as well as financial considerations.

The company can postpone the distribution of dividend in cash, which may be conserved for strengthening the financial condition of the company by declaring stock dividend or bonus shares.A stable dividend policy should not be taken to mean an inflexible or rigid policy.Reduction in dividends can be affected but not without the co-operation of shareholders. (iv) Need for additional Capital: The extent to which the profits are ploughed back into the business has got a considerable influence on the dividend policy.This paper seeks to examine the determinants of dividends payout policy.

Determinants of dividend payout policy: Evidence from

Higher rates of dividend are used as a tool for marketing the securities in an otherwise depressed market. (vi) Changes in Government Policies: Sometimes government limits the rate of dividend declared by companies in a particular industry or in all spheres of business activity.The confidence of shareholders in the corporate management is also strengthened.We will write a custom essay sample on The Determinants of Corporate Dividend Policy or any similar topic specifically for you.

Determinants of Dividend Policy: evidence from Portugal

At present, the amount of dividend declared is tax free in the hands of shareholders. (ix) Future Requirements: Accumulation of profits becomes necessary to provide against contingencies (or hazards) of the business, to finance future- expansion of the business and to modernise or replace equipments of the enterprise.

Basically the dividend laws were intended to protect creditors and therefore prohibit payment of a dividend if a corporation is insolvent or if the dividend payment will cause insolvency.Sometimes, a stock dividend is declared to protect the interests of old stock holders when a company is about to sell a new issue of stock (so that new shareholders should not share the accumulated surplus).This is a case study of emerging stock exchanges, where the determinants of dividend policy have received little attention.

Liquidity, Profitability and the Dividends Payout Policy

An Empirical Study on the Determinants of Dividend Policy

It presents empirical effort to the area of dividend policy determinants.In this study, an attempt is made to investigate dividend policies of non-financial companies.The regularity of dividend payment and the stability of its rate are the two main objectives aimed at by the corporate management.

Dynamics and determinants of dividend policy - UK Essays

The objective of research is to delve into the dividend policy in the FMCG sector of Pakistan.

Read Microsoft Word - Determinants of Dividend Policy

Factors Influencing Dividend Policy Decisions in Banking Sector: An Indian Evidence.Determinants of Dividend Payout Policy: Regulated Versus Unregulated Firms. by Atul K.This study used a panel dataset of non-financial firms listed on the GCC country stock exchanges between the years of 1999 and 2003.

Determinants of Dividend Policy: A study of selected

This is not an example of the work written by our professional.The models considered the impact of government ownership, free cash flow, firm size, growth rate, growth opportunity, business risk, and firm profitability on dividend payout ratios.If depression is approaching, only a conservative dividend policy can be regarded as prudent. (viii) Taxation policy: Corporate taxes affect dividends directly and indirectly— directly, in as much as they reduce the residual profits after tax available for shareholders and indirectly, as the distribution of dividends beyond a certain limit is itself subject to tax.Determinants of Dividend Payout Policy of listed Financial Institutions in Ghana.Dividend Yield and Stock Return in Different Economic Environment: Evidence from Malaysia.

Determinants of Dividend Policy in Nigerian Manufacturing Firms Sanyaolu, Wasiu Abiodun Department of Accounting, Crescent University Abeokuta, Ogun State, Nigeria.Dividend has to take the form of bonus shares issued to the members in lieu of cash payment.

Dividend Behaviour of Indian Companies Under Monetary Policy Restrictions.Before publishing your articles on this site, please read the following pages: 1.In other words, the reserves are capitalised and their ownership is formally transferred to the shareholders.It results in a transfer of an amount from the accumulated earnings or surplus account to the share capital account.This means that firms generally prefer not to change dividends, particularly.The Case Of The Japanese Electrical Appliances Industry. proved that dividend policy is irrelevant to share value in.On the other hand, it entails the payment of a fair rate of return, taking into account the normal growth of business and the gradual impact of external events.

Determinants of Dividend Payout Policy of listed Financial

The average earnings should be subjected to the trends of general economic conditions.Proceedings of the Fifth Asia-Pacific Conference on Global Business, Economics, Finance and Social Sciences (AP16Mauritius Conference) ISBN - 978-1-943579-38-9.If the stock holders prefer cash to additional stock in the company, they can sell the stock received as dividend.


Determinants of Corporate Dividends Policy: Evidence from

ADVERTISEMENTS: A stable dividend record makes future financing easier.

Al-Kuwari, Duha, Determinants of the Dividend Policy of Companies Listed on Emerging Stock Exchanges: The Case of the Gulf Cooperation Council (GCC) Countries (September 23, 2009).EBSCOhost serves thousands of libraries with premium essays, articles and other content including An Empirical Study on the Determinants of Dividend Policy in the UK.Subscribe to this fee journal for more curated articles on this topic.