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.
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.
Relationship of Managerial Economics with other disciplines,Difference betwee...Pooja Kadiyan
Introduction to Managerial Economics- Relationship of Managerial Economics with other disciplines,
- Difference between Micro and Macroeconomics and
- Economic concepts/Principles Used in Decision Making
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. Dividend and market price of shares are interrelated. However, there are two schools of thought: while one school of thought opines that dividend has an impact on the value of the firm, another school argues that the amount of dividend paid has no effect on the valuation of firm.
The first school of thought refers to the Relevance of dividend while the other one relates to the Irrelevance of dividend.
Relevance includes: 1. Walter Valuation Model 2.GORDON’S MODEL.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Mohammad Abadullah
Dilruba Jahan Popi
Rabiul Islam
Effat Ara Saima
MD. Rajib Mojumder (Captain)
Relationship of Managerial Economics with other disciplines,Difference betwee...Pooja Kadiyan
Introduction to Managerial Economics- Relationship of Managerial Economics with other disciplines,
- Difference between Micro and Macroeconomics and
- Economic concepts/Principles Used in Decision Making
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends are important for more than income generation: they also provide a way for investors to assess a company as an investment prospect. Dividend and market price of shares are interrelated. However, there are two schools of thought: while one school of thought opines that dividend has an impact on the value of the firm, another school argues that the amount of dividend paid has no effect on the valuation of firm.
The first school of thought refers to the Relevance of dividend while the other one relates to the Irrelevance of dividend.
Relevance includes: 1. Walter Valuation Model 2.GORDON’S MODEL.
Macro Economics
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Mohammad Abadullah
Dilruba Jahan Popi
Rabiul Islam
Effat Ara Saima
MD. Rajib Mojumder (Captain)
what is dividend policy
theory of dividend policy
dividend irrelevance theory
Modigliani and miller approach
MM formula
assumption
dividend relevant theory
Walters model
formula
assumption
Effect of Dividend Policy on Value Creation for Shareholders of Companies Lis...iosrjce
Several theories have been documented on the relevance and irrelevance of dividend policy. Many
authors continue to come up with different findings from their studies on the relevance of dividend policy. A
company’s management is dealing with competing interests of various shareholders, the kind of dividend policy
they adopt may have either positive or negative effects on the share prices of the company. The effect of a firm’s
dividend policy on the current price of its shares is a matter of considerable importance, not only to
management, who must set the policy, but also to investors planning portfolios and to economists seeking to
understand and appraise the functioning of the capital market. It is on this basis that the study sought to
establish the effect of dividend policy on value creation for shareholders of companies listed in the Nairobi
Securities Exchange. The objectives of the study were to establish the effect of dividend announcement on value
creation for shareholders of companies listed in Nairobi Securities Exchange, to establish the effect of dividend
payout on value creation for shareholders of companies listed in Nairobi Securities Exchange, to determine how
tax incentives influence value creation for shareholders of companies listed in Nairobi Securities Exchange and
to identify how free cash flows influence value creation for shareholders of companies listed in theNairobi
Securities Exchange. A questionnaire was used to collect primary data from the Finance Managers of the public
companies. The data wasanalysed using Regression Analysis, and descriptive statistics through the use of SPSS.
The findings indicated that all the variables contributed positively to value creation of shareholders of
companies listed in the NSE
What is Dividend ?
What is Dividend Decision ?
Factors affecting Dividend Decision.
Concepts of Dividend Decision.
The Irrelevance Concept.
The Relevance Concept.
References.
Dividend is that portion of net profits which is distributed among the shareholders. The dividend decision of the firm is of crucial importance for the finance manager since it determines the amount to be distributed among shareholders and the amount of profit to be retained in the business.
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