Dividend policy

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Dividend policy

Standards by which a firm determines the amount of money it will pay as dividends.

Dividend Policy

The amount of a dividend that a publicly-traded company decides to pay out to shareholders. The dividend policy may change from time to time. Factors affecting a dividend policy include the company's earnings for the relevant period and its expected performance in the near future. Many companies, especially startups, have a rather stingy dividend policy because they plow back much of their earnings into further development. Established companies, such as blue chips, tend to have relatively liberal dividend policies. However, some research, notably Miller and Modigliani's irrelevance proposition, suggests that a company's dividend policy does not impact its performance in any way. See also: Dividend clientele, Signaling approach (on dividend policy).
References in periodicals archive ?
Taking these dividend policies and a strong balance sheet based on favorable strong business performance into considerations, the interim dividend forecast for the end of the second quarter of the fiscal year ending March 31, 2020, previously announced on May 13, 2019, is revised to JPY80 by increase of JPY10.
Many research attempts, within these mixed-banking markets, have been made to study the differences in dividend policies of IBs versus CBs.
Keywords: dividend policies, dividend compensation, cross-investing bind, managerial ownership, concentrated ownership, private benefits and family legacy
The agency conflicts dealt under the Agency Theory have been studied and some hypotheses on the link between such conflicts and dividend policies have been proposed.
Because of the reality of dealing with contending interests of different shareholders and the sort of dividend policies, companies embrace either immediate positive or negative consequences for the share prices of the organizations.
According to the existing literature these factors are considered to be positively related to dividend policies and hence the expected sign of this factor become negative.
Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative Analysis, 27(2), 247-263.
These responses lend further support to the conclusion cited above, which states that Omani firms followed active dividend policies rather than residual.
Therefore, many different dividend policies are exercised in companies.
Various tax burdens for dividends and capital yields create different groups of investors interested in various corporate dividend policies. If capital yields are taxed with a lower rate than dividend yields, then investors with higher profits will prefer capital yields.
Chemmanur, He, Hu, and Liu (2010) developed new insights about the dynamics of corporate dividend policy by performing the natural experiment of comparing corporate dividend policies in Hong Kong and the U.S.
The relationship between the ownership structure and liability policies and profit dividend Policies by Jensen and et al (1992) [7] studied.