Payout Policy and Choice of Payout in UK Firms

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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Table of contents

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 01: INTRODUCTION1

Background of the Study1

Research Questions1

Aims and Objectives2

Significance of the Study2

CHAPTER 02: LITERATURE REVIEW4

Types of Dividend Policies5

Objective of Dividend Policies6

Legal Restrictions7

Internal Restrictions8

Owners Considerations9

Market Considerations9

New Capital through the New Issues10

CHAPTER 03: METHODOLOGY12

Search Technique13

Literature Search13

Ethical Consideration15

Suggestions16

CHAPTER 04: ANTICIPATED RESULTS18

CHAPTER 01: INTRODUCTION

Background of the Study

Dividends are the profits that are paid to shareholders in return for their investment. The most important objective of any company is to promote economic and social welfare of the country through appropriate capital investment. These capital investments are undertaken by the companies in order to deliver the best performance. All the companies, whether public or private, require financial resources to carry out their activities. These activities are adopted either to develop new projects or expand their existing roles. The initiation and development of new projects involves investments. Whatever the case, the means by which individuals or companies to get financial resources are in the process of operation, creation or expansion in the internal or external, short, medium and long term is known as funding sources. Domestic financing is often necessary to start very early in the development of the company when the employer is still implemented the product or business concept as most of the firm's assets are intangible.

Research Questions

How the stock prices are relate to the level of dividends?

What reasons justify the use of liquids such as dividend payments means of returning value to shareholders at the expense of other possible forms of retribution?

What are the determinants of the amount of dividends?

What are the variables or factors that predict the dividend policy followed by UK firms?

Aims and Objectives

This study aims to explain the dividend policy followed by UK firms. In recent decades the dividend policy followed by UK firms has been an issue that has aroused much interest among theorists and financial analysts. In the last few years many researchers have tried to answer a series of questions related to such decisions, which will discussed in this study.

Significance of the Study

The significance of the study can be seen through the fact that there are many changes in the dividend patterns of the UK firms over time. The UK firms have undergone many changes since past few years in the dividends pattern. The study shows that system of profit distribution has been significantly changed that has raised the investor's trust on the firms. Currently, the corporations also invite their valuable shareholders ...