Download file to see previous pages...
The dividend policies to be undertaken are based on the present and future financial attitudes of the company. The inclination and direction of the investors are also considered. A company may select any of the following three types of dividend policies;
The disbursement and amount of dividends are factors for debate for quiet a long time now. Black (1976) states that, “Under conditions of symmetric information and taxes, dividends have been dubbed a puzzle”. A number of authors model dividend policy based on the assumption that info is dealt out asymmetrically between managers and capitalists. Bhattacharya (1979, 1980) indicates that firms pay dividends since dividends indicate the private information of directors and thus it assists market players evaluate about the firm accordingly.
Some of the major oil producing companies in the UK and those listed in the stock exchanges is taken as sample for the research work. Their dividend policies and the percentage of pay out in these firms of the oil sector are considered for the research analysis.
The study will follow the ‘Research Process’. Collis and Hussey explain, ‘Research is a process of enquiry and investigation that is conducted in a systematic and methodical way with a view to increasing knowledge’ (Collis and Hussey, 2009). In simple terms the research process can be understood in four steps, a) Plan Search, b) do the research, c) Collect info, and d) Evaluate and reflect. The research will be based on a secondary research.
The rationale of the research is to analyse the dividend policy of the oil sector for the last five years. Based on the analysis, a conclusion of the dividend policy of the company will be figured out. The Lintners model on dividend policy will be surveyed to identify and explain the dividend policy of the oil sector.
The analysis of the research would be to examine the number of firms which had
...Download file to see next pagesRead More
DIVIDEND POLICY Name Professor’s name Course Date Dividend is the payments that are given to the shareholders from the profits or reserves of a company. In the case of Associated British food company plc, the shareholders have experienced increasing dividends in the last four years.
Dividends can be paid either in cash or through stocks themselves. The Preferred stock holders are given a fixed dividend every year irrespective of the firms’ profitability whereas the common stock holders are paid from the company’s profitability and hence the dividends change every year.
Basic facilities like water, electricity, food and shelter should be sufficient. Real estates prices will increase when the land is in the center of the city, or in industrial areas, or in residential areas. Infrastructure of the city or town plays an important role because those are the basic amenities that an investor would look into, before buying the land.
The existing shareholders of the company received a mixture of new ordinary shares and redeemable "B" shares. Marks & Spencer also reduced its share capital by 17:21 - or 17 new ordinary shares for every 21 old ordinary shares. The "B" shares, on the other hand, are redeemable for cash plus interest in the future.
The dividend policy of the firm is determined by the fact that the manager's depression to influence the capital structure of the firm by leveraging would allow him to independently act by increasing debt thus reducing equity. Therefore the basis of the dividend policy itself is determined by the manager's ability to manipulate the capital structure of the firm.
The author states that providing dividends to the share holders in the form of cash is dragging out the money available in the firm and therefore the market capitalization of the firm should reduce by the same amount as the total dividends given, because the market capitalization is directly related to the share price.
Stockholders have certain requirements that need to be taken into consideration in determining dividend policy or formulation of an appropriate dividend structure.
Arriva is the one of the biggest names in the transport service business in the
EU corporate response is underlined by a similar strategic response to the current global economic crisis. However the real significance of this policy shift in the EU corporate context is marked by a dichotomy of
Dividend is the amount that a company pays annually or semi-annually to the shareholders out of its profit (Michaely and Roberts, 2012). However, there are certain guidelines which decide the payment of the earning to the shareholders, these set of guidelines is known as dividend policy.
10 Pages(2500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic M Sc Dissertation Proposal ( Dividend policy) for FREE!