"Miller Modigliani Dividend Irrelevance Proposition" Essays and Research Papers

  • Miller Modigliani Dividend Irrelevance Proposition

    relevance of dividend policy-discuss these theories. In what situations might management decide to increase dividends? Dividend Irrelevance Theory Much like their work on the capital-structure irrelevance proposition, Modigliani and Miller also theorized that, with no taxes or bankruptcy costs, dividend policy is also irrelevant. This is known as the dividend-irrelevance theory, indicating that there is no effect from dividends on a company's capital structure or stock price. Modigliani and Miller's...

    Corporate finance, Dividend, Dividend yield 703  Words | 3  Pages

  • Modigliani and Miller

    ESSAY ON : CRITISM OF MODIGLIANI AND MILLER HYPOTHESIS For a firm, the most significant everlasting theme is getting the maximum profit is by minimising cost and taking the least risk. Capital Structure refers to the mix of sources from where the long term funds required in a business may be raised, i.e., what should be the proportions of equity share capital, preference share capital, internal sources, debentures, and other sources of funds in the total amount of capital which an undertaking...

    Capital structure, Corporate finance, Finance 2017  Words | 6  Pages

  • dividend

    Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Whether to issue dividends, and what amount, is determined mainly on the basis of the company's unappropriated profit (excess cash) and influenced by the company's long-term earning power. When cash surplus exists and is not needed by the firm, then management is expected to pay out some or all of those surplus earnings in the form of cash dividends...

    Dividend, Dividend yield, Finance 2052  Words | 7  Pages

  • Dividend Policy

    Dividend policy Dividend policy is concerned with taking a decision regarding paying cash dividend in the present or paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends which unlike cash dividends do not provide liquidity to the investors, however, it ensures capital gains to the stockholders. The expectations of dividends by shareholders helps them determine the share value, therefore, dividend policy is a significant decision taken by the financial...

    Dividend, Finance, Investment 1691  Words | 7  Pages

  • Does a dividend policy matter?

    INTRODUCTION That report is a detailed review of dividend policy and whether or not could affect the market value of the company. When companies make profits, managers have to decide either to reinvest those profits for the good of company or either they could pay out the owners (shareholders) of the firm in dividends. Once they decide to pay dividends they may possibly establish a permanent dividend policy, which is the set of guidelines a company uses in order to decide how much of its profits...

    Dividend, Dividend yield, Investment 1574  Words | 5  Pages

  • Dividends

    Deal with rational for dividend according to MM Relevance theory, Walter's Model, Gordon’s Growth Model, Graham Dodd Model Deal with rational for dividend according to MM Relevance theory, Walter's Model, Gordon’s Growth Model, Graham Dodd Model Financial Management Assignment 2 Topic: Rational for Dividends By Group 2:- 104 | Anshul Jain 105 | Bhaskar Jain 106 | Pranav Jain 154 | Parth Barot 155 | Subhashish Baruah 156 | Chaitanya Agrawal Financial Management Assignment 2 Topic: Rational...

    Dividend, Dividend reinvestment plan, Dividends 842  Words | 3  Pages

  • Dividend Irrelevance Theory

    Dividend irrelevance theoryRelevance or irrelevance of retention for dividend policy irrelevance Carlo Alberto Magni Department of Economics, University of Modena and Reggio Emilia viale Berengario 51, 41100 Modena, Italy Email: magni@unimo.it Abstract. In an interesting recent paper, DeAngelo and DeAngelo (2006) highlight that Miller and Modigliani’s (1961) proof of dividend irrelevance is based on the assumption that the amount of dividends distributed to shareholders is equal or greater than...

    Assumption of Mary, Capital structure, Cash flow 5931  Words | 22  Pages

  • Dividend Policies

    The dividend irrelevance theory is a concept that is based on the premise that the dividend policy of a given company should not be considered particularly important by investors. Further, the terms of that dividend policy should not have any bearing on the price of the shares of stock issued by that company. With this particular financial theory, the idea is that investors can always sell a portion of their shares if they want to generate some amount of cash flow. As with most investment theories...

    Corporate finance, Dividend, Finance 2067  Words | 6  Pages

  • Summary Modigliani & Miller

    L1 - Modigliani & Miller (1958) ‘The Cost of Capital, Corporation Finance and the Theory of Investment’ This article mainly discusses the cost of capital, the required return necessary to make a capital budgeting project worthwhile. Cost of capital includes the cost of debt and the cost of equity. Theorist conclude that the cost of capital to the owners of a firm is simply the rate of interest on bonds. In a world without uncertainty the rational approach would be (1) to maximize profits and (2)...

    Capital structure, Corporate finance, Cost of capital 1323  Words | 5  Pages

  • Dividend Policy

    University of Hong Kong Dividend Policy Bank distributed a $6.30 dividend per share in 2008. If you purchased shares in Hang Seng Bank at $87 per share, the company’s dividend yield was 7.2% ($6.30/$87) which is much higher than the bank deposit rate. Dividend payout ratio is another important indicator: Dividend payout ratio = Dividend per share ÷ Earnings per share Dividend policy is the policy used by a company to decide how much it will pay out to shareholders in dividends. In your financial...

    Cash flow, Dividend, Dividend yield 1334  Words | 4  Pages

  • Dividend Policy Link Bewteen Theory & Practice

    capitalization on the dividend rate. The study reveals that as per dividend irrelevance theory dividend policy has no influence on value of the firm for the reason of homemade dividend according to dividend relevance theory, value of the firm is influenced by dividend policy because of certainty, information content and clientele effect; liquidity, availability of worthwhile projects, availability of alternative funds, profitability, growth, leverage, reaction of market to dividend reduction, ownership...

    Dividend, Dividend yield, Dividends 1072  Words | 4  Pages

  • Effect of Dividend Policies

    Introduction The optimal dividend policy of a firm depends on investor’s desire for capital gains as opposed to income, their willingness to forgo dividend now for future returns, and their perception of the risk associated with postponement of returns. However any normative approach to dividend policy intended to be operative under real world conditions should consider the firms investment opportunities, any preferences that investors have for dividends as opposed to capital gains and vice...

    Bond, Dividend, Dividend yield 1970  Words | 6  Pages

  • Summary of Literature Review on Dividends

    review article The article is called Dividend policy: A review of Theories and Empirical Evidence. In this article, the main theories on dividend policy are described and their credibility is evaluated. Connection between the reviewed paper and my research proposal According to my research proposal, the master thesis topic will be “Comparative analysis of companies’ dividend policy: international perspective”. Therefore, the literature review on dividend policy has a direct connection to my...

    Cash flow, Corporate finance, Dividend 2161  Words | 7  Pages

  • Dividend Decision

    15.3  Dividend Relevance Model  15.3.1  15.3.2  Walter Model  Gordon’s Dividend Capitalization Model  Dividend Decision  15.4  Dividend Irrelevance Theory:  Miller and Modigliani Model  15.5  Stability of Dividends  15.6  Forms of Dividends  15.7  Stock Split  15.8  Summary  Terminal Questions  Answers to SAQs and TQs  15.1 Introduction  Dividends are that portion of a firm’s net earnings paid to the shareholders. Preference shareholders  are  entitled  to a fixed  rate of  dividend  irrespective ...

    Dividend, Dividend yield, Dividends 2110  Words | 5  Pages

  • Theories of Dividend

    OF THE THREE DIVIDEND POLICY THEORIES Figure 13A-1 illustrates the three alternative dividend policy theories: (1) Miller and Modigliani’s dividend irrelevance theory, (2) Gordon and Lintner’s bird-in-thehand theory, and (3) the tax preference theory. To understand the three theories, consider the case of Hardin Electronics, which has from its inception plowed all earnings back into the business and thus has never paid a dividend. Hardin’s management is now reconsidering its dividend policy, and...

    Consumer theory, Dividend, Dividend yield 1063  Words | 6  Pages

  • An Example of Dividend Policy Irrelevance

    AN EXAMPLE OF DIVIDEND POLICY IRRELEVANCE An example provides insight into the dividend irrelevance proposition. Suppose that now is time 0, and one year from now is time 1. Carter Company just paid its time 0 dividend (assume dividends are paid once per year), and plans to publicly announce its dividend policy for the next year. It is considering the following two policies (all dollar amounts in $millions). Policy I: At time 1, dividends = $110, new share sales = 0, treasury stock purchases...

    Corporate finance, Dividend, Dividend yield 416  Words | 2  Pages

  • Dividend Policy Determinants

    review of dividend theories along with the major empirical evidence for and against the dividend theories, a brief summary of the results of empirical analysis of determinants of dividend policy by country. Theoretical and empirical backgrounds of the article cover the last fifty years research outcomes on firm value and dividend policy of the firm. Summarizing all these works, there are three dominating views. The first, Gordon (1963), and Lintner (1962) suggest that an increase in dividend payout...

    Agency cost, Dividend, Dividend yield 1747  Words | 5  Pages

  • Dividend

    Abstract v Key Terms ix CHAPTER-1 Introduction 1.1 Introduction to Dividends 1 1.2 A Short History of Dividend Policy 6 1.3 Dividend Policy 9 1.4 Economic Rationale to Dividends 12 1.5 Dividend Policy and its Linkages with other Financial Policies 15 1.6 Pure Vs Smoothed Residual Dividend Policy 16 1.7 Dividend Declaration Process 17 1.8 Alternative Forms of Dividends 18 1.8.1 Stock Repurchases or Share buy Backs 19 1.8.2 Bonus Shares ...

    Dividend, Dividend yield, Dividends 1891  Words | 29  Pages

  • journal critque on dividend policy

    Individual Assignment Journal Critique on Dividend Policy Executive Master in Business Administration 2014 Prepared by: MOHAMAD NOR BIN ANNUAR (2013467872) The first report entitled “Dividend Policy Decisions” by Dr. Gurdeep Chawla is a report based on past research that seeks to describe dividend theories, dividend policies and the factors that managers consider important in formulating those policies. While the second report is entitled “Dividend policy and payout ratio: evidence from the...

    Dividend, Dividend yield, Dividends 1736  Words | 3  Pages

  • Dividend Policy at Fpl

    1) Miller and Modigliani, the middle-of-the-roaders, opined that dividend policy has no effect on a firm’s value in a perfect and efficient capital market. The rightist believed that dividend payout increases the value of a firm; the leftist said that if taxes on dividend are higher than capital gains then companies should pay the lowest dividend policy and concentrate on capital appreciation; also that companies should use instead those monies to invest for growth and development that appreciate...

    Dividend, Dividend yield, Dividends 1497  Words | 4  Pages

  • Dividend Policy

    Dividend Theory 1. Discuss the factors which may impact on a firm’s dividend policy? .Industry and Company Variations Payout ratios vary amongst different industries e.g. firms within the telecoms and utilities sectors may typically payout around 60% of earnings in dividends, whilst retailers and computer software companies may typically payout around 20% of earnings in dividends Legal Constraints 1. Legal constraints can be viewed in the context of three broad areas; ...

    Dividend, Dividend yield, Finance 1959  Words | 7  Pages

  • 505 Quiz 1

    my research, I found some dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: either it can be re-invested in the business, or it can be paid to the shareholders as a dividend. Dividend policy has been an issue of interest in financial literature since Joint Stock Companies came into existence. Dividends are defined as the distribution...

    Dividend, Finance, Joint stock company 852  Words | 6  Pages

  • Dividend Policy at Fpl Group

    Dividend Policy at FPL Group FPL Group Overview: The FPL Group was Florida’s largest electric utility group and the fourth largest in America. The FPL Group had annual revenues of exceeding $5 billion. Florida Power & Light Company, the main subsidiary of the FPL Group had 3.9 million customer accounts and covered a service area that included six of America’s ten fastest growing metropolitan areas. a. Summarize the key elements of FPL’s financial policy and compare it with other relevant...

    Dividend, Dividend yield, Dividends 1134  Words | 4  Pages

  • Paper Presentation on Dividend Policy

    Paper Presentation on Dividend Theory (a theoretical review) 9 Presented by: |ABDULMUMIN, Biliqees Ayoola |UIL/PG2012/105873 | |ADEJARE, Rukayat Bukola |UIL/PG2012/104601 | |AMUJO, Emmanuel Temitope |UIL/PG2012/103958 ...

    Corporate finance, Dividend, Dividend yield 6421  Words | 30  Pages

  • Dividend

    cash to its shareholders by issuing a dividend or undertaking a stock repurchase. To issue a dividend, the firm’s board of directors must authorize the amount per share that will be paid on the declaration date. The firm pays the dividend to all shareholders of record on the record date. Because it takes three business days for shares to be registered, only shareholders who purchase the stock at least three days prior to the record date receive the dividend. As a result, the date two business days...

    Corporate finance, Dividend, Dividend tax 5167  Words | 17  Pages

  • Two Agency Cost Explanations of Dividend Policy

    The economic literature about dividends usually assumes that managers are perfect agents of investors, and it seeks to determine why these agents pay dividends. Other literature about the firm assumes that managers are imperfect agents and inquires how managers’ interests may be aligned with shareholders’ interests. These two lines of inquiry rarely meet. Yet logically any dividend policy (or any other corporate policy) should be designed to minimize the sum of capital, agency, and taxation costs...

    Dividend, Finance, Franco Modigliani 501  Words | 2  Pages

  • Miller

    does Miller fit the profile of the average fraud perpetrator? How does he differ? How did these characteristics make him difficult to detect? Miller fit the profile of the average fraud perpetrator is that he has seem to look like everyone else in the business world who is well liked and seem to be an ideal employee. Purpose of Miller is trying to gain the trust of his employer and colleagues. That’s why Miller works so hard on the constant energetic attempt to conceal his fraud. Miller differed...

    Concealment, Criminal law, Embezzlement 745  Words | 3  Pages

  • Dividend Relevance

    How accurate is the statement that “The dividend policy of a firm is irrelevant”. By Mr. George Ekegey Ekeha (MBA – Finance, MBA & BCom) (Lecturer in Corporate Finance & International Finance @ Regent University College of Science & Technology) Email: ekegey24ge@yahoo.co.uk March 2009 THIS PAPER IS PREPARED IN RESPONSE TO A RELEVANT QUESTION TO HELP STUDENTS TAKING CORPORATE FINANCE COURSE. No Part of This Thesis Is To Be Used For Any Purposes, Other Than Academic REFERENCE...

    Corporate finance, Dividend, Dividend tax 5565  Words | 18  Pages

  • Dividends and Dividend Policy

    Running Head: DIVIDENDS AND DIVIDEND POLICY: DOES DIVIDEND Dividends and Dividend Policy: Does Dividend Policy Matter Ronald Jones University of Phoenix August 21, 2011 Dividends and Dividend Policy: Does Dividend Policy Matter According to Investor Dictionary, corporate finance is the specific area of finance dealing with the financial decisions corporations make, and the tools and analysis used to make the decisions. It may be divided as a whole between long term, capital...

    Dividend, Dividend reinvestment plan, Dividends 1197  Words | 4  Pages

  • Dividend Policy

    Effects of Dividends on Stock Prices in Nepal Rabindra Joshi* Abstract This paper examines the impact of dividends on stock price in the context of Nepal. A majority of earlier studies conducted in developed countries show that dividend has a strong effect than retained earnings. The study examines whether this is consistent in the context of Nepal (or not) and the implication particularly to the banking and non-banking sector. To achieve the objective of the study, a descriptive and analytical research...

    Dividend, Dividend yield, Financial ratio 6456  Words | 17  Pages

  • Dividend Policy

    DIVIDEND POLICY * Under dividend policy you should be ale to explain the following: * Dividend and types of dividend * Dividend policies and factors that affect dividend policy * Theories of dividend policy * It is a proportion of annual accounting profit or accumulated profit paid out to shareholders either in the form of cash or shares. * Dividend is recommended by the Board of directors for the approval of shareholders at Annual General Meeting (AGM). Shareholders can...

    Dividend, Dividend reinvestment plan, Dividend yield 661  Words | 3  Pages

  • Dividend Policy (Good )

    Dividend Policy Vinod Kothari Corporations earn profits – they do not distribute all of it. Part of profit is ploughed back or held back as retained earnings. Part of the profit gets distributed to the shareholders. The part that is distributed is the dividend. The ratio of the actual distribution or dividend, and the total distributable profits, is called dividend payout ratio. How much of its profits should a corporation distribute? There are several considerations that apply in answering this...

    Basic financial concepts, Dividend, Dividend yield 3583  Words | 12  Pages

  • Effect of Dividend Payment on Stock Prices Case Study of Nairobi Stock Exchange 20 Share Index

    EFFECT OF DIVIDEND PAYMENT ON STOCK PRICES CASE STUDY OF NAIROBI STOCK EXCHANGE 20 SHARE INDEX GROUP PRESENTATION Submitted by Submitted to the Department of Finance in partial fulfillment of the Financial Seminar Course; University Of Nairobi. October, 2010. COURSE INSTRUCTOR: DR. JOSIAH ADUDA 1 CHAPTER ONE INTRODUCTION 1.1 Background of the study In finance, there are some areas, which have puzzled researchers. One of them is the dividend behaviour of firms. Along with...

    Dividend, Dividend yield, Dividends 5628  Words | 18  Pages

  • dividend payout

    Introduction A dividend is termed as a portion of a firm’s earnings that is returned to its shareholders. Dividends offer a further motif for investors to hold or even increase their investments. A lot of companies, mature or young, large or small, pay stable dividend. It is true that high dividend yield is important for current investors because it indicates, to some degree, a firm’s financial well being, but paying 100% of its earnings as dividend is not financially wise. Instead of paying dividends, fluid...

    Corporate finance, Dividend, Dividend yield 813  Words | 3  Pages

  • Chapter 17 Payout Policy

    Objectives 1. Describe how dividends are paid out and how corporations decide how much to pay. 2. Explain how stock repurchases are used to distribute cash to investors. 3. Explain why dividend increases and repurchases are good news for investors and why dividend cuts are bad news. 4. Explain why payout policy would not affect shareholder value in perfect and efficient financial markets. 5. Show how market imperfections, especially the different tax treatment of dividends and capital gains, can...

    Corporate finance, Dividend, Fundamental analysis 1567  Words | 7  Pages

  • Miller

    Number of documents delivered: 1 Sweet & Maxwell is part of Thomson Reuters. © 2012 Thomson Reuters (Professional) UK Limited Page1 Status: Positive or Neutral Judicial Treatment R. v Paris (Anthony) R. v Abdullahi (Yusuf) R. v Miller (Stephen Wayne) Court of Appeal (Criminal Division) 16 December 1992 Case Analysis Where Reported (1993) 97 Cr. App. R. 99; [1994] Crim. L.R. 361; Times, December 24, 1992; Independent, December 17, 1992 Case Digest Subject: Criminal...

    1911, 1913, 1918 987  Words | 6  Pages

  • Dividend Policy

    An Empirical Analysis of Dividend Payout Policy Indian Corporate ABSTRACT In the present paper an attempt has been made to assess the dividend payout policies of Indian Companies. For the purpose of study BSE Sensex -30 companies have been selected as sample for the study. To study impact of profitability, liquidity and size of business on dividend payout regression analysis were carried out. An attempt has also been made to calculate estimated dividend payout based on regression results...

    BSE Sensex, Corporate finance, Dividend 5103  Words | 16  Pages

  • Dividend Irrevance Theory

    ONE 1 INTRODUCTION The term dividend refers to that part of profits of a company which is distributed by the company among its shareholders. It is the reward of the shareholders for investments made by them in the shares of the company. The investors are interested in earning the maximum return on their investments and to maximize their wealth. A company, on the other hand, needs to provide funds to finance its long-term growth. If a company pays out as dividend most of what it earns, then for...

    Corporate finance, Dividend, Dividend yield 7017  Words | 26  Pages

  • Dividend Policy

    A: Description of dividend policy Dividend policy is an important issue for all top management in every year because company need to make decision about paying the dividend or not and how much of the dividend per share. It means that company may not pay the dividend because it wants to keep more capital to develop the new plans or hope company can have enough money to handle the future problems. On the other hand, company may think that it need to pay the dividend to the shareholders every year...

    Dividend, Dividend payout ratio, Dividend yield 2184  Words | 6  Pages

  • Dividend Theories and Their Arguments

    eurojournals.com Dividend Policy: A Review of Theories and Empirical Evidence Husam-Aldin Nizar Al-Malkawi Corresponding Author, Faculty of Business, ALHOSN University P.O. Box 38772 - Abu Dhabi, UAE E-mail: h.almalkawi@alhosnu.ae Michael Rafferty Senior Research Analyst, WRC, University of Sydney, Australia E-mail: m.rafferty@econ.usyd.edu.au Rekha Pillai Faculty of Business, ALHOSN University, Abu Dhabi, UAE E-mail: r.pillai@alhosnu.ae Abstract The literature on dividend policy has produced...

    Dividend, Dividend yield, Dividends 19059  Words | 53  Pages

  • Miller

    (Miller, Hill, Quester, & Hiller, 2011) studied an approach to assess the significance of graphic health warnings (GHW) on cigarette packets, on smoker’s beliefs and attitudes and smoking behavior and intentions. In 2006 Australia announced graphic health warnings (GHW) on cigarette packets, illustrating a range of tobacco associated pathology. This intervention, monitoring the attractiveness of a consumer product, was designed to raise consumers’ awareness of the ills of tobacco use, motivate quitting...

    Cigarette, Cigarette pack, Cigarettes 2202  Words | 8  Pages

  • Finance

    COMM370 – Alejandra Medina Practice for Lecture 12-13: Modigliani-Miller Propositions Question 1. Prove Modigliani-Miller proposition 1 with corporate taxes. As part of your answer, clearly state the underlying assumptions, explain the intuition underlying the proof, and conceptually interpret the meaning of the proposition. Note: you should be able to formally prove MM 1 & MM2 as we did in class. Question 2. Levered Inc. and Unlevered Inc. are identical in every respect except for capital ...

    Debt, Finance, Leverage 642  Words | 2  Pages

  • Mb0045 2nd Sem Smude

    occurring at different periods of time. • Compounding and discounting are two methods used to calculate the time value of money. Q. 4. XYZ India Ltd’s share is expected to touch Rs. 450 one year from now. The company is expected to declare a dividend of Rs. 25 per share. What is the price at which an investor would be willing to buy if his or herrequired rate of return is 15%? Solution: P0 = D1/(1+Ke) + P1/(1+Ke) = {25/(1+0.15)} + {450/(1+0.15)} = 21.74 + 391.30 = Rs. 413.04 ...

    Capital structure, Corporate finance, Economics 1412  Words | 6  Pages

  • Financial management

    Question The dividend discount model tells us that the value of a firm is equal to the present value of its expected dividend payments. Some firms have never paid dividends and have no intention of doing so. Does this mean that these firms are worth nothing? Discuss with reference to academic research and theory. Answer 719 words Two schools about dividend policy: relevant dividend theory and irrelevant dividend theory The dividend discount model tells us the value of a firm is...

    Capital structure, Dividend, Dividend yield 754  Words | 4  Pages

  • Dividends

    financing) was so-closely tied to the dividend decision. In essence, capital structure policy affects the dividend decision and vice versa. This chapter, however, focuses on the dividend decision. Realize that the decisions are not independent. Does Dividend Policy Really Matter? Theory Dividend Irrelevance, Modigliani & Miller (1961): Just when you thought you heard enough of M&M, we have another irrelevancy result. This one deals with dividends. Assume that the economic environment...

    Corporate finance, Dividend, Dividend yield 2221  Words | 13  Pages

  • How Taxes Affect Dividends and Share Repurchases

    REVIEW OF ‘HOW TAXES AFFECT THE DIVIDEND POLICY AND SHARE REPURCHASES’ Review of ‘How Taxes affect the Dividend Policy and Share Repurchases’ • Dividends and share repurchases are both used by firms as part of their payout policy • According to the Miller-Modigliani dividend irrelevance theory, in the absence of taxes and transaction costs, a share repurchase will result in the same return for shareholders via capital gains as the return that a cash dividend would yield. Hence shareholders...

    Dividend, Dividend tax, Finance 627  Words | 2  Pages

  • Dividend Decision

    DIVIDEND DECISION  The dividend decision is one of the 3 basic decisions which a financial manager maybe required to take, the other two being the investment decisions and the financing decisions. In each period any earnings that remain after satisfying obligations to the creditors, the government and the preference sh.hol can either be retained or paid out as dividends or bifurcated between retained earnings and dividends. The retained earnings can be invested in assets which will help...

    Dividend, Dividend yield, Dividends 1540  Words | 6  Pages

  • DIVIDEND POLICY AND FIRM PERFORMANCE A STUDY OF LISTED FIRMS IN NIGERIA

    442–454, 2012 DIVIDEND POLICY AND FIRM PERFORMANCE: A STUDY OF LISTED FIRMS IN NIGERIA Uwalomwa UWUIGBE1 Covenant University, Ogun State, Nigeria Jimoh JAFARU Auchi Polytechnic, Edo State, Nigeria Anijesushola AJAYI Covenant University, Ogun State, Nigeria ABSTRACT This study basically investigates the relationship between the financial performance and dividend payout among listed firms’ in Nigeria. It also looks at the relationship between ownership structure, size of firms and the dividend payouts....

    Corporate finance, Dividend, Dividend yield 5157  Words | 14  Pages

  • Amedeo Modigliani

    Amadeo Modigliani was born in Livorno, Italy on July 12, 1884. He was a famous Jewish-Italian painter and sculptor. Modigliani was influenced heavily by African masks and primitivism. His paintings are characteristic of quick and precise brush strokes, deformations to the human figure and simplicity of shapes. Modigliani led a very self-destructive and eccentric lifestyle in which he frequently drank and smoked. He was constantly in poverty, however women found him incredibly attractive and later...

    Amedeo Modigliani, Drawing, Face 839  Words | 3  Pages

  • Dividend Policy

     Dividend Policy: Clientele Effects and Signalling Model Literature Review Sharon Theresia 17132233 Corporate Finance 307 Singapore Campus Abstract Two of the most influential dividend policies are being reviewed and compared. in this paper, clientele effects and signalling model are two chosen policies. Findings implied that clientele is shaped by tax preferences of shareholders which in the end will determine companies’ ideal dividend policies. It is also believed that amount of paid dividend...

    Discounted cash flow, Dividend, Dividend yield 3895  Words | 14  Pages

  • Dividends Policy and Common Stock Prices

    how much a company should pay its stockholders, as dividend is one that has been of concern to managers for a long time. The optimal dividend policy of a firm may be defined as the one that increases shareholders wealth by the greatest amount. It is therefore necessary, to understand the nature of the relationship between dividend and value of the firm. It is in the light of this that the study examines the possible effects of a firm’s dividend policy on the market price of its common stock with...

    Cash flow statement, Dividend, Dividend yield 9323  Words | 27  Pages

  • Impact of Dividend Policy on Shareholders Wealth

    IMPACT OF DIVIDEND POLICY ON THE MAXIMIZATION OF SHAREHOLDERS WEALTH. BY LASISI TIRIMISIYU KUNLE REG NO: U08AC1128 Being A Research Project Submitted To The Department Of Accounting, Faculty Of Administration, Ahmadu Bello University Zaria, In Partial Fulfillment Of The Requirements For The Award Of Bachelor Of Science (B.Sc) In Accounting DEPARTMENT OF ACCOUNTING FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY, ZARIA JULY, 2012 TABLE OF CONTENT CHAPTER ONE: INTRODUCTION 1.1 Background...

    Cash flow, Cash flow statement, Dividend 11527  Words | 35  Pages

  • dividend policy

    CHAPTER 13 DIVIDEND POLICY L E A R N I N G LG1 LG2 LG3 Understand cash dividend payment procedures and the role of dividend reinvestment plans. Describe the residual theory of dividends and the key arguments with regard to dividend irrelevance and relevance. Discuss the key factors involved in formulating a dividend policy. G O A L S LG4 Review and evaluate the three basic types of dividend policies. LG5 Evaluate stock dividends from accounting, shareholder...

    Corporate finance, Dividend, Dividend reinvestment plan 14319  Words | 93  Pages

  • Law, Ownership, Corporate Governance , and Dividend Payout Policy: Evidence from 33 Countries

    Miller and Modigiliani (1961) prove that dividend policy is irrelevant to share value in perfect and efficient capital markets. In this setup, no rational investor has a preference between dividends and capital gains. However, dividend payout policy is still discussed extensively until now. In this proposal, I use a sample of companies from 33 countries around the world to shed light on the relationship among legal origin, insider holdings, corporate governance, and dividend payout policy. This idea...

    Cash flow, Corporate finance, Dividend 1780  Words | 5  Pages

  • Impact of Tax Consideration and Transitory Earnings on Dividend Inside a Firm.

    IMPACT OF TAX CONSIDERATION AND TRANSITORY EARNINGS ON DIVIDEND INSIDE A FIRM. By ADARAMOLA A. O. (Ph.D.) ABSTRACT The purpose of this paper is to discuss the Dividend Relevance Theory and to determine whether a relationship exists between dividend payment and transitory earnings; given the impact of tax and other economic conditions with the objective of maximizing the present discounted value of after tax dividend. To achieve this, the Lintner’s models were specified to which the...

    Dividend, Dividend yield, Finance 4237  Words | 14  Pages

  • dividend policy

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  • Determinates of Dividend Policy Apple

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  • 1how Does Dividend Policy Affect Performance Of The Firm On Ghana Stock Exchange

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    Dividend, Dividend yield, Stock market 5744  Words | 10  Pages

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