Some of the most important determinants of dividend policy are: (i) type of industry (ii) age of corporation (iii) extent of share distribution (iv) need for additional capital (v) business cycles (vi) changes in government policies (vii) trends of profits (vii) trends of profits (viii) taxation policy (ix) future requirements and (x) cash balance. Dividend payout ratio refers to the percentage share of the net earnings distributed to the shareholders as dividends dividend policy involves the decision to pay out earnings or to retain them for reinvestment in the firm.
The objective of this paper is to (1 ) critically review some of the factors that influences dividend policy of firms from a theoretical perspective (2) analyze the last five-year dividend policy of apple inc nd dell inc. Dividend policy of a company sets the guidelines to be followed while deciding the amount of dividend to be paid out to the shareholders the company needs to adhere to the dividend policy while deciding the proportion of earnings to be distributed and the frequency of the distribution.
Dividend policy is an unsolved mystery in the field of finance even after decades of investigations, scholars still disagree on the factors that influence dividend decisions of companies hence, this paper explored the determinants of dividend policy of companies listed on the stock exchange of mauritius.
The determinants of corporate dividend policy 71 similarly, liquidity ( 341) shows a positive relation with the dividend rate at 1 % level of significance the ownership structure of a firm representing institutional owners has a positive coefficient (0 091) but is statistically not significant. Analysis of apple and dell dividend policy (section 2) apple inc according to apple annual report (2009, 201 0, 2011) in the year 2009 to 2011 the company did not declare dividend the company anticipates that it will retain any earnings for use in the operation of the business.
Theories and determinants of dividend policy (section 1) tax and clienteles theory clientele theory attributes diversity in dividend policy according to the preference of investor.
Determinants of dividend policy in financial management - determinants of dividend policy in financial management courses with reference manuals and examples home financial management tutorial. Determinants of dividends among indian firms—an empirical study b rajesh kumar1 and ks sujit2 apple started paying dividends only in the year 2012 and zhang (2013) suggests that risk and liquidity are important determinants of the dividend policy in developed markets of us and europe the study by louis and urcan (2015) find that. About apple the latest press, contact info, jobs, and more home apple investor relations financial information dividend history. The amount and trend of earnings is an important aspect of dividend policy it is rather the starting point of the dividend policy as dividends can be paid only out of present or past year’s profits, earnings of a company fix the upper limits on dividends.