Can dividend payoutsbased on
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hpSpring 2010Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsbased on
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hpSpring 2010Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsbased on
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hpSpring 2010Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsbased on
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hpSpring 2010Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsbased on
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hpSpring 2010Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsbased on stock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hp
Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hp
Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Master Thesis, 15 hp
Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Supervisor: Owe R. HedstrmAuthor: Aziz MirzabekovSeminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Supervisor: Owe R. Hedstrm
Seminar date: May 10, 2010
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
Supervisor: Owe R. Hedstrm
Can dividend payoutsstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
Nordic IT Companies dividend policy analysis
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure
and future earnings be predictedstock market liquidity and capital structure?
and future earnings be predicted?
and future earnings be predictedand future earnings be predicted
ii
I am far from underestimating the importance of dividends;but I rank dividends below human character
Theodore Roosevelt26th President of the United States
iii
ACKNOWLEDGMENT
I would like to thank my parents heartily for their invaluable countenance andheartening my studies, providing me necessary means and support in finishing myMaster programme and giving me wonderful opportunity of being a part of world classinstitute, my alma mater.
I would like to thank my study advisor, Owe R. Hedstrm, for his patience,understanding, practical assistance and knowledge he gave me through this MasterThesis. Without his great and tremendous support it would be impossible to finish mygraduation project.
I also would like to express my gratitude towards NASDAQ OMX team, especiallysales director Ulla Vanhakangas for their assistance in processing the financial data.
Special thanks go to Umea University Library staff for helping with access to thearticles, books and Thompson Reuters DataStream.
Furthermore, I want to thank Dzmitry Pechko, my fellow student in Master programme,who helped me with solutions for many complex issues in my thesis. He supported meand gave valuable comments on my thesis. Additionally, I thank my old friend, AkmalNiyazov, who helped me to collect my strength during my studies.
Finally, I express my thanks to Malika Azamova, who had been my muse and rousingpower trough my studies.
Aziz Mirzabekov
Ume, April 2010
iv
SUMMARY
Dividend policy has significant impact on the company's capital market, in particularthe dynamics of the price of its shares. Dividends represent cash income of shareholdersand to some extent, signal them about success of the firm they have invested. From thatpoint of view dividend policy has crucial impact on investment decisions.
Numbers of valuation models based on dividend payouts exist in the financial theoryand they imply importance of dividends in making investment decisions. Alternativelysome authors argue that role of the dividends is overestimated, as investors do notseparate dividends and capital earnings. I believe that dividend policy has broadinfluence not only on share valuation, but also on capital structure of the company andits stock market liquidity.
Study intended to discover if dividend payouts and future earnings can be predictedbased on stock market liquidity and capital structure. I have analysed 72 companiesassociated with Nordic information technologies market and tried to find maincharacteristics of dividend policy adopted in those companies. I have divided myresearch question into three parts and studied hypothesises which are associated withthe research question.
I found relationship of dividend policies with future earnings growth power, firm capitalstructure and market liquidity. As a result of my study I have observed financialstatements data and obtained the following outcome: (1) with valid and approveddividend policy, payout ratio is positively related to the future earnings growth rate (2)companies that have less liquid stock markets are more likely to pay dividends (3)companies with low leverage ratios have more probability of paying dividends. Also Ihave found that historically low payout ratio is harbinger of low or even negativeearnings growth rates.
I believe that based on findings mentioned above, effective investment policy could becreated. For the investor who favours to invest in company with high earnings growthperspectives and receive high dividends in the future, results of the study could beinteresting. According to the results of the research, for dividend preferring investor,funds should be invested in the company with constantly high payout ratio, low stockmarket liquidity and debt-to-equity ratio below 1. In that case the probability of meetinginvestment expectations would be much higher.
Keywords: dividend policy, stock market liquidity, capital structure, earnings, Miller
and Modigliani, dividend signalling theory, Nordic IT Market, dividend payout.
v
TABLE OF CONTENTS
1. INTRODUCTION .................................................................... 1
1.1 BACKGROUND.................................................................................................................... 11.2 RESEARCH PROBLEM FORMULATION ................................................................................ 31.3 PURPOSE............................................................................................................................ 31.4 LIMITATIONS OF THE THESIS.............................................................................................. 41.5 DISPOSITION ...................................................................................................................... 5
2. THEORETICAL METHODOLOGY ............................................. 6
2.1 EPISTEMOLOGY.................................................................................................................. 62.2 THEORETICAL PERSPECTIVE ............................................................................................... 72.3 SCIENTIFIC METHODOLOGY............................................................................................... 82.4 METHODS .......................................................................................................................... 92.5 CRITIQUE OF SOURCES OF THE DATA ACCESSED ............................................................. 10
3. LITERATURE REVIEW........................................................... 11
3.1 DO DIVIDENDS ASSOCIATED WITH FUTURE EARNINGS? ................................................. 113.1.1 THEORETICAL EXPLANATIONS AND THEORIES.......................................................... 113.1.2 THE DIVIDEND IRRELEVANCE THEORY ...................................................................... 123.1.3 THE BIRD IN THE HAND THEORY............................................................................ 123.1.4 THE TAX-PREFERENCE EXPLANATION ....................................................................... 133.1.5 THE SIGNALLING EXPLANATION................................................................................ 143.1.6 THE AGENCY EXPLANATION...................................................................................... 163.1.7 FORMULATION OF THE HYPOTHESIS 1 ..................................................................... 18
3.2 DOES STOCK MARKET LIQUIDITY DETERMINE DIVIDEND PAYMENTS?............................ 183.2.1 THEORETICAL BACKGROUND AND STUDIES.............................................................. 183.2.2 FORMULATION OF THE HYPOTHESIS 2 ..................................................................... 20
3.3 IS THERE ANY CONNECTION BETWEEN CAPITAL STRUCTURE AND DIVIDENDS? ............. 203.3.1 THEORETICAL OVERVIEW.......................................................................................... 213.2.2 FORMULATION OF THE HYPOTHESIS 3 ..................................................................... 22
4. DATA COLLECTION AND VARIABLES.................................... 23
4.1 DATA COLLECTION ........................................................................................................... 23
4.2 BIASES .............................................................................................................................. 234.2.1 DATA MINING BIAS ................................................................................................... 234.2.2 SURVIVORSHIP BIAS .................................................................................................. 244.2.3 TIME-PERIOD BIAS .................................................................................................... 24
vi
4.2.4 LOOK-AHEAD BIAS .................................................................................................... 24
4.3 VARIABLES........................................................................................................................ 244.3.1 VARIABLES USED IN HYPOTHESIS 1 TESTING ............................................................ 254.3.2 VARIABLES USED IN HYPOTHESIS 2 TESTING ............................................................ 264.3.3 VARIABLES USED IN HYPOTHESIS 3 TESTING ............................................................ 27
5. DATA ANALYSIS AND HYPOTHESES TESTING....................... 29
5.1 HYPOTHESIS 1 TESTING.................................................................................................... 295.1.1 FORMULATION OF THE NULL HYPOTHESIS ............................................................... 305.1.2 DEFINITION OF TEST STATISTIC................................................................................. 315.1.3 SPECIFYING THE SIGNIFICANCE LEVEL ...................................................................... 325.1.4 ALTERNATIVE HYPOTHESIS ....................................................................................... 32
5.2 HYPOTHESIS 2 TESTING.................................................................................................... 335.2.1 FORMULATION OF THE NULL HYPOTHESIS. .............................................................. 345.2.2 DEFINITION OF TEST STATISTIC................................................................................. 345.2.3 SPECIFYING THE SIGNIFICANCE LEVEL ...................................................................... 355.2.4 ALTERNATIVE HYPOTHESIS ....................................................................................... 35
5.3 HYPOTHESIS 3 TESTING.................................................................................................... 375.3.1 FORMULATION OF THE NULL HYPOTHESIS ............................................................... 375.3.2 DEFINITION OF TEST STATISTIC................................................................................. 385.3.3 SPECIFYING THE SIGNIFICANCE LEVEL ...................................................................... 385.3.4 ALTERNATIVE HYPOTHESIS ....................................................................................... 38
6. RESULTS DISCUSSION AND CONCLUSION............................ 40
6.1. POSITIVE RESULTS........................................................................................................... 406.2. SUGGESTIONS FOR FURTHER RESEARCH ........................................................................ 426.3. CONTRIBUTION TO THE SCIENCE FRAMEWORK ............................................................. 42
7. REFERENCES ....................................................................... 43
vii
LIST OF TABLES
TABLE 1: REPRESENTATIVE SAMPLING OF RESEARCH CATEGORIES 12
TABLE 2: GROUPS FORMATION BASED ON LIQUIDITY LEVEL, HYPOTHESIS 2 40
TABLE 3: GROUPS FORMATION BASED ON LEVERAGE RATIO, HYPOTHESIS 3 43
LIST OF FIGURES
FIGURE 1: PAYOUT RATIO AND SUBSEQUENT 10-YEAR EARNINGS GROWTH 20
FIGURE 2: SCATTERGRAM OF PAYOUT RATIO VS. SUBSEQUENT 10-YEAR REALEARNINGS GROWTH
21
FIGURE 3: DIVIDEND PAYING STOCKS OUTPERFORM NON-DIVIDEND PAYING STOCKS 22
FIGURE 4: LITERATURE REVIEW RESULTS ON DIVIDEND RELATED HYPOTHESISES 23
FIGURE 5: DIVIDEND PAYERS AND STOCK MARKET LIQUIDITY 25
FIGURE 6: SUMMARY OF RATIOS USED IN RESEARCH 34
FIGURE 7: NUMBER OF COMPANIES INCLUDED IN THE SAMPLE, HYPOTHESIS 1 35
FIGURE 8: 2-YEAR SUBSEQUENT EARNINGS GROWTH BY GROUPS 39
FIGURE 9: TRADE VOLUME, DIVIDEND PAYERS AND NON-DIVIDEND PAYERS 42
FIGURE 10: DIVIDEND PAYMENT BY GROUPS 42
FIGURE 11: AVERAGE DIVIDENDS BY GROUPS 45
FIGURE 12: DIVIDEND PAYMENT BY GROUPS, HYPOTHESIS 3 45
APPENDIX
APPENDIX 1: LIST OF COMPANIES INCLUDED IN THE STUDY 47
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchproblemoutlined and determined. The background of the research question will beresult main goal of the thesisquestion,
1.1
In 161661 the first dividends onpaying dividends on shares continues in our timesmajor studies andStatespublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constquestion which is still relevant in our times:the size, shapeby1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companiesviewtried to explain this puzzle as a result of uncertairelated matters
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Withoutthere cannotwhere
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchproblemoutlined and determined. The background of the research question will beresult main goal of the thesisquestion,
1.1
In 161661 the first dividends onpaying dividends on shares continues in our timesmajor studies andStatespublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constquestion which is still relevant in our times:the size, shapeby Miller1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companiesviewtried to explain this puzzle as a result of uncertairelated matters
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Withoutthere cannotwhere
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchproblemoutlined and determined. The background of the research question will beresult main goal of the thesisquestion,
1.1 Background
In 1613 the first joint1661 the first dividends onpaying dividends on shares continues in our timesmajor studies andStates. Intensive apublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constquestion which is still relevant in our times:the size, shape
Miller1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companiesview ittried to explain this puzzle as a result of uncertairelated matters
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Withoutthere cannotwhere stable extra dividends paid
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchproblem woutlined and determined. The background of the research question will beresult main goal of the thesisquestion, limitations
Background
13 the first joint1661 the first dividends onpaying dividends on shares continues in our timesmajor studies and
Intensive apublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constquestion which is still relevant in our times:the size, shape
Miller-Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
it should not mattertried to explain this puzzle as a result of uncertairelated matters
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Withoutthere cannot
stable extra dividends paid
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchwill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
limitations
Background
13 the first joint1661 the first dividends onpaying dividends on shares continues in our timesmajor studies and
Intensive apublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constquestion which is still relevant in our times:the size, shape
Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not mattertried to explain this puzzle as a result of uncertairelated matters
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Withoutthere cannot be a reasonable investment policy
stable extra dividends paid
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
limitations
Background
13 the first joint1661 the first dividends onpaying dividends on shares continues in our timesmajor studies and
Intensive apublished in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spentrelatively constant share of the profits to pay dividends.question which is still relevant in our times:the size, shape and timing of dividend payments?
Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not mattertried to explain this puzzle as a result of uncertairelated matters.
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
Aziz Mirzabekov
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
limitations
Background
13 the first joint1661 the first dividends onpaying dividends on shares continues in our timesmajor studies and
Intensive attempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not mattertried to explain this puzzle as a result of uncertai
Even half a centuryfactors which determine the choice of parameters ofstochastic influencethesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions oncapital structure, market liquidity
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
limitations of the results and
Background
13 the first joint1661 the first dividends onpaying dividends on shares continues in our times
formation of dividend policy rules were developed in the Uttempts to explain dividend policy began with the study of D. Lintner,
published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not mattertried to explain this puzzle as a result of uncertai
Even half a century passed,factors which determine the choice of parameters ofstochastic influence of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
of the results and
13 the first joint-stock shares of British East India Company were issued and in1661 the first dividends onpaying dividends on shares continues in our times
formation of dividend policy rules were developed in the Uttempts to explain dividend policy began with the study of D. Lintner,
published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not mattertried to explain this puzzle as a result of uncertai
passed,factors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity
Dynamically developingfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
of the results and
stock shares of British East India Company were issued and in1661 the first dividends onpaying dividends on shares continues in our times
formation of dividend policy rules were developed in the Uttempts to explain dividend policy began with the study of D. Lintner,
published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
should not matter for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
passed,factors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity
Dynamically developing companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis
of the results and
stock shares of British East India Company were issued and in1661 the first dividends on these shares were declared. Once begun, the tradition ofpaying dividends on shares continues in our times
formation of dividend policy rules were developed in the Uttempts to explain dividend policy began with the study of D. Lintner,
published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
passed, the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beresult main goal of the thesis is going to be formulated
of the results and
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
like a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
of the results and
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
, market liquidity.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment adividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
of the results and
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies shouldcontinue improving investment attractiveness.dividend policy plays a major role in achieving this goal. Without
be a reasonable investment policystable extra dividends paid in addition to
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
of the results and thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ttractiveness.dividend policy plays a major role in achieving this goal. Without
be a reasonable investment policyin addition to
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times:
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the mthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ttractiveness.dividend policy plays a major role in achieving this goal. Without
be a reasonable investment policyin addition to
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.question which is still relevant in our times: what
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affectinvestors prefer dividend paying companies even though
for investors (Cohen, 2002tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
of dividends on the market capitalizationthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ttractiveness.dividend policy plays a major role in achieving this goal. Without
be a reasonable investment policyin addition to
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our timesformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.what
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affect
even thoughfor investors (Cohen, 2002
tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ttractiveness.dividend policy plays a major role in achieving this goal. Without
be a reasonable investment policy; all isin addition to
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
paying dividends on shares continues in our times (Scott, 1formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.what choices made by managers do affect
and timing of dividend payments?Modigliani as a result dividend puzzle was introduced and evolved in 1959
1961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affect
even thoughfor investors (Cohen, 2002
tried to explain this puzzle as a result of uncertai
the question remains acute because offactors which determine the choice of parameters of
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
all isin addition to the
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated
thesis disposition
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
(Scott, 1formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.choices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affect
even thoughfor investors (Cohen, 2002, p. 93
tried to explain this puzzle as a result of uncertainties, behavioural finance,
the question remains acute because offactors which determine the choice of parameters of
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
all is equalthe
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beis going to be formulated. Reasons for choosing research
thesis disposition will be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
(Scott, 1formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.choices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend paymentdividend puzzle is the finance concept in which dividends do affect
even thoughp. 93
nties, behavioural finance,
the question remains acute because offactors which determine the choice of parameters of the
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policypoint the impact of dividend payment decisions on companies
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
equalthe capital gains
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
(Scott, 1951formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends.choices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 19591961. Authors scrutinized the effects of dividend payments on investors behaviour.dividend puzzle is the finance concept in which dividends do affect
even though from the theoretical point ofp. 93).
nties, behavioural finance,
the question remains acute because ofthe
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policy
companies
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
equal investor chooses a company,capital gains
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
951formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
ant share of the profits to pay dividends. J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
dividend puzzle is the finance concept in which dividends do affectfrom the theoretical point of). A great deal
nties, behavioural finance,
the question remains acute because ofthe dividend policy, and often
arket capitalizationthesis tries to explain the effects of manager decisions on dividend policy
companies
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
investor chooses a company,capital gains
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
951, pformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
dividend puzzle is the finance concept in which dividends do affectfrom the theoretical point of
A great dealnties, behavioural finance,
the question remains acute because ofdividend policy, and often
arket capitalization of the company.thesis tries to explain the effects of manager decisions on dividend policy
companies
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that odividend policy plays a major role in achieving this goal. Without
investor chooses a company,capital gains
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
, pp. 130formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
dividend puzzle is the finance concept in which dividends do affectfrom the theoretical point of
A great dealnties, behavioural finance,
the question remains acute because ofdividend policy, and often
of the company.thesis tries to explain the effects of manager decisions on dividend policy
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
I believe that optimization of thedividend policy plays a major role in achieving this goal. Without clear
investor chooses a company,capital gains
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
. 130formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
dividend puzzle is the finance concept in which dividends do affect on share price anfrom the theoretical point of
A great dealnties, behavioural finance,
the question remains acute because of adividend policy, and often
of the company.thesis tries to explain the effects of manager decisions on dividend policy
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of theclear
investor chooses a company,capital gains arising from
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will beReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
. 130-132formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
on share price anfrom the theoretical point of
A great dealnties, behavioural finance,
a large number ofdividend policy, and often
of the company.thesis tries to explain the effects of manager decisions on dividend policy
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of theclear dividend policy
investor chooses a company,arising from
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemslike a puzzle with pieces that just dont fit together
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
outlined and determined. The background of the research question will be reviled;Reasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
132)formation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
on share price anfrom the theoretical point of
of researchesnties, behavioural finance,
large number ofdividend policy, and often
of the company.thesis tries to explain the effects of manager decisions on dividend policy and in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,arising from
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seems Black, 1976
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
reviled;Reasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
). Howeverformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
on share price anfrom the theoretical point of
of researchesnties, behavioural finance,
large number ofdividend policy, and often
of the company.and in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,arising from
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemsBlack, 1976
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
reviled;Reasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
Howeverformation of dividend policy rules were developed in the U
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour.
on share price anfrom the theoretical point of
of researchesnties, behavioural finance, and tax
large number ofdividend policy, and often
of the company.and in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,arising from
Master Thesis, 15 hp
The harder we look at the dividend picture, the more it seemsBlack, 1976
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
reviled; as aReasons for choosing researchwill be closing the chapter.
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
Howeverformation of dividend policy rules were developed in the United
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959on investors behaviour. The
on share price anfrom the theoretical point of
of researchesand tax
large number ofdividend policy, and often
Thisand in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,price
Master Thesis, 15 hp
1
The harder we look at the dividend picture, the more it seemsBlack, 1976
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
as aReasons for choosing research
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
Howevernited
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Modigliani as a result dividend puzzle was introduced and evolved in 1959-The
on share price andfrom the theoretical point of
of researchesand tax
large number ofdividend policy, and often
Thisand in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,price
The harder we look at the dividend picture, the more it seems
In this chapter empirical, practical and theoretical background of the chosen researchill be introduced. As well as gaps in understanding the problem will be
as aReasons for choosing research
stock shares of British East India Company were issued and inthese shares were declared. Once begun, the tradition of
Howevernited
ttempts to explain dividend policy began with the study of D. Lintner,published in 1956. In his research he examined 28 US companies in the period from1947 to 1953 and identified the pattern according to which the studied companies spent
J. Lintner tried to ask thechoices made by managers do affectLater analogous research was made
Thed
from the theoretical point ofof researches
large number ofdividend policy, and often
Thisand in some
financial figures e.g.
companies require a constant inflow of investments needed forfurther development, expansion and modernization of production, development of newtechnologies and products. In order to attract new investments companies should
ptimization of thedividend policy
investor chooses a company,price
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object ofcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capiDividendsof the company.involves two key questions
Most practitioners consider the problem of optimizing the dividend policyimportant. However,depindividual needsof selecting the optimal dividend policy
These tasks are the keystone in the consideration of all the mpolicy
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends thdividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object ofcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capiDividendsof the company.involves two key questions
Most practitioners consider the problem of optimizing the dividend policyimportant. However,depends on many factors. Thereforeindividual needsof selecting the optimal dividend policy
These tasks are the keystone in the consideration of all the mpolicy
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends thdividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object ofcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capiDividendsof the company.involves two key questions
Does the magnitude of dividendshareholders?
If yes,dividends
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. Thereforeindividual needsof selecting the optimal dividend policy
These tasks are the keystone in the consideration of all the mpolicy, e.g.
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends thdividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object ofcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capiDividendsof the company.involves two key questions
Does the magnitude of dividendshareholders?
If yes,dividends
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. Thereforeindividual needsof selecting the optimal dividend policy
Maximize
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the m, e.g.
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends thdividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object ofcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capiDividends could beof the company.involves two key questions
Does the magnitude of dividendshareholders?
If yes,dividends
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. Thereforeindividual needsof selecting the optimal dividend policy
Maximize
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the m, e.g. finding
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends thdividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
The object of mycompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capi
could beof the company.involves two key questions
Does the magnitude of dividendshareholders?
If yes, what is the best way of maximising shareholders wealth in terms ofdividends
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. Thereforeindividual needsof selecting the optimal dividend policy
Maximize
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the mfinding
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the coif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches madedividends through recession perioddividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
Aziz Mirzabekov
differences of the shares.be conducted in close connection with the dividend policy.
mycompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capi
could beof the company.involves two key questions
Does the magnitude of dividendshareholders?
what is the best way of maximising shareholders wealth in terms ofdividends?
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. Thereforeindividual needs. On the other hand in the theoryof selecting the optimal dividend policy
Maximize the total wealth of the shareholders;
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the mfinding
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements ofbusiness of the company, for example, if high dividends harmful for future earnings orif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Researchresearches made,
ough recession perioddividend payments (period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
differences of the shares.be conducted in close connection with the dividend policy.
research is tcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capi
could be certainof the company. From a theoretical point of view, the choice of diinvolves two key questions
Does the magnitude of dividendshareholders?
what is the best way of maximising shareholders wealth in terms of
Most practitioners consider the problem of optimizing the dividend policyimportant. However,
ends on many factors. ThereforeOn the other hand in the theory
of selecting the optimal dividend policy
the total wealth of the shareholders;
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the mfinding sources of dividends, the order of payment
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements of
mpany, for example, if high dividends harmful for future earnings orif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Research
Information Technology sector remained as a source of steadyough recession period
dividend payments (Calahong, 2009,period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
differences of the shares.be conducted in close connection with the dividend policy.
research is tcompanys activities, dimensions, shape, nature and its determinants.research object is relevant because management of capital structure has a significantimpact on the company's capi
certainFrom a theoretical point of view, the choice of di
involves two key questions
Does the magnitude of dividendshareholders?
what is the best way of maximising shareholders wealth in terms of
Most practitioners consider the problem of optimizing the dividend policyimportant. However, there is no
ends on many factors. ThereforeOn the other hand in the theory
of selecting the optimal dividend policy
the total wealth of the shareholders;
Sufficiently finance investment projects
These tasks are the keystone in the consideration of all the msources of dividends, the order of payment
All important factors mentioned above determined the research question of the thesis.Thesis intends to describe the influence of dividend payments on other key elements of
mpany, for example, if high dividends harmful for future earnings orif dividend payments somehow determine the capital structure of the company.choice of the theme of this study was influenced by the increased interest in theproblems of formation an
In order to study the effects of dividend policyresults could differ for various industries,industry, and results Iconsidered as one of the world largest IT spending countries thus IT Market isinteresting to examine (Research
Information Technology sector remained as a source of steadyough recession period
Calahong, 2009,period without recessionary impact.
After reading number of articles, discussions and books on dividend policy and howcompany should establish payout ratio, I have discovered that most of the studiesconcentrate on single effect of
differences of the shares. Developbe conducted in close connection with the dividend policy.
research is tcompanys activities, dimensions, shape, nature and
Top Related