FINANCE

Finance



Finance

Dividend Policy

The dividend policy is the formal action of the company which determines the form and amount by which profits are distributed through payments made to shareholders and gains that reinvest in the company. Consequently, dividend policy should consider and analyze the relationship between the distribution of profits as dividends and retained earnings. Results of several studies on the companies listed on Stock Exchange suggest that dividends can influence the share price and, therefore, the dividend policy reflects upon the strategic issues of a company. In addition to this, the stock prices determine as the present value of a ...