Research Papers Dividend Policy Theories

Tags: Treaty Of Versailles Research PaperHomework StudiesDoing Your Literature ReviewFormal Outline Research PapersM.Tech Thesis In Digital Image ProcessingCar Insurance Research PaperBaz Luhrmann And Franco Zeffirelli EssayBusiness Link Business Plan

We find that size, profitability, and interest coverage ratios have a significant positive relation to dividend policy.

Furthermore, business risk and debt reveal a significantly negative relation with dividends.

This longitudinal study uses balanced data consisting of companies listed on the National Stock Exchange (NSE) of India for 12 years—from 2006 to 2017.

Pooled ordinary least squares (POLSs) and fixed effects panel models are used in our estimation.

All investors expect a certain amount of return on their investment for the risk taken.

Firms can allocate profits to their stockholders either through dividends or share repurchases.Dividends can be distributed out of profits, and require the existence of free cash flows; hence, the payment of dividends provides a positive signal to investors (Bhattacharya 1979; Miller and Rock 1985).According to Jensen (1986), the agency cost of the free cash flow model predicts that companies with larger free cash flows tend to distribute higher dividends rather than investing in projects with a lower net present value (NPV).It is referred to as the “bird-in-hand” argument, as investors prefer current income rather than future income (Gordon 1963).Also, the tax treatment of dividends and capital gains is different.Investors can get a return on their investment through dividends (current income).Alternatively, if a company has a lucrative investment opportunity available, it may not distribute its profits.The results of this study can be used by financial managers and policymakers in order to make appropriate dividend decisions.They can also help investors make portfolio selection decisions based on sectoral dividend paying behavior.Thus, as concluded by Miller and Modigliani (1961), investors should not differentiate among dividends and retaining profits.However, Miller and Modigliani’s assumptions of a perfect capital market, no taxes, certainty, and fixed investment strategy does not really exist.

SHOW COMMENTS

Comments Research Papers Dividend Policy Theories

  • Dividend Policy Research Proposal Essays -
    Reply

    Dividend Policy Research Proposal Essay Dividend policy is the complex of decisions aimed at the payment of the dividends to the investors of a company. It is natural that every investor expects to receive his own part of the dividend and this sum should be calculated objectively in order to satisfy both the investor and the owners of the corporation.…

  • Theories of Dividend Walter’s model, Gordon’s model and.
    Reply

    Some of the major different theories of dividend in financial management are as follows 1. Walter’s model 2. Gordon’s model 3. Modigliani and Miller’s hypothesis. On the relationship between dividend and the value of the firm different theories have been advanced. They are as follows…

  • DIVIDEND POLICY AND THE STOCK MARKET. - pro-
    Reply

    REFERENCES. Testing for Market Efficiency in Emerging Markets A Case Study of the Karachi Stock Market. The Lahore Journal of Economics, 12 1, 119-140 Naeem, S. and Nasr, M. 2007. Dividend policy of Pakistani Firms; Trends and Determinants. International Review of Business Research Papers, 3 3, 242-254.…

  • A Theory of Dividends Dissertation Example Topics and Well.
    Reply

    This research paper “A Theory of Dividends” examines the strong relationship existing between the dividend and share prices in relation Our website is a unique platform where students can share their papers in a matter of giving an example of the work to be done.…

  • Dividend policy research papers - Trustworthy Writing Help.
    Reply

    Dividend policy research papers Baird January 08, 2016 Dividend policy, and business research in developed markets, the probability of the carrier tells you need for economic research assistance available empirical research network working paper is working paper is on their.…

  • Dividend policy decision Essay Example - Research Papers ᐈ.
    Reply

    Dividend policy decision is one of the important decisions of corporate finance. A dividend policy should be such that it maximizes the shareholders wealth and provides adequate financing to the firm. A firm with fluctuation dividend policy is considered risky by the investors.…

  • Dividend Policy on Financial Performance A Case Study of.
    Reply

    Between dividend policy and Earning per Share of Companies. From the research objective above, the following hypotheses formulated in their null form will be tested. Ho1 There is no significant relationship between Investment of the firm and dividend policy. Ho2 There is no significant relationship between firm’s profitability and dividend.…

  • Financial Theories And Strategies Business Finance.
    Reply

    Research Papers 1239 words 3.5 pages Essay on Motivation and Management Theories - Motivation and Management Theories Management Theory of Douglas McGregor - Theory X and Theory Y McGregor's theories define about the attitudes of managers and workers, as well as how workers are perceived by management, and how workers perceive their role in.…

  • The Effect of Dividend Policy on Share Price. - IOSR Journals
    Reply

    Dividend policy and its market value. Debates have centered on whether 100% dividend payout ratio or 100%. retention ratio or the mix of dividend payout and retention is optimal dividend decision that affect the value of. the firm and shareholder’s return.…

The Latest from domug.ru ©