Us Dividend Policy Analyses

Authors

  • Michael Wijaya Bina Nusantara University

DOI:

https://doi.org/10.21512/bbr.v4i1.1414

Keywords:

dividend policy, factors of dividend policy, stock values, investor satisfaction, shareholder welfare

Abstract

The main issue writer examines in this writing is to analyze whether or not dividend policy is a determinant to maintain stock values or firm values as a whole.  It is essential that dividend policy is managed properly to enhance the satisfaction of the investors at any level of characteristics. At the end, investors are the key that determines the stock value movement. Some investors are looking for capital gain and some do care about dividend payout.  Thus, the decision of dividend policy becomes crucial. It needs to understand that a firm's dividend policy may have effects on shareholder welfare. The answers can be found out by analyzing different factors of dividend policy. Taken as a whole, to see if there are other alternatives if dividend policy that can maintain or even boost up firm values. Different dividend policy has some upsides and downsides that a corporation needs to consider. One of the alternatives that is common and has become a key is stock repurchase plan.

Author Biography

Michael Wijaya, Bina Nusantara University

Accounting and Finance Department

References

Baker, H. K. (2009). Dividends and Dividend Policy. Kolb Series in Finance.

Dielman, T. E., and Oppenheimer, H. R. (1984). The Information Content of Large Dividend Changes. Financial Review.

Healy, P. M., and Palepu, K. G. (2001). Information Asymmetry, Corporate Disclosure and the Capital Markets: A Review of the Empirical Disclosure Literature. Journal of Accounting and Economics.

Kalay, A. (1982). The Ex-Dividend Day Behavior of Stock Prices: A Re-Examination of the Clientele Effect. The Journal of Finance.

Miller, M. H. (1988). The Modigliani-Miller Proposition after Thirty Years. The Journal of Economic Perspectives.

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Published

2013-05-31
Abstract 371  .
PDF downloaded 240  .