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Signaling Approach on Dividend Policy |
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Signaling Approach on Dividend Policy The belief that the amount per share a company pays in dividends is a strong indication of what the management believes about future earnings. For example, if the company pays $5 per share when it had paid $8 per share the previous time dividends were disbursed, shareholders may take this as a signal that the management believes that earnings will soon decline. Some investors may use the signaling approach on dividend policy as a means to determine whether to buy or sell a stock. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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