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Dividend Policy

  • F. V. Meyer
  • D. C. Corner
  • J. E. S. Parker

Abstract

Distribution policy is part of the finance function. Managements make explicit decisions about the level of dividends to be paid to shareholders. These decisions have a direct influence on the liquidity of companies and the quantity of finance available for expansion. It has been said that ‘pay-out, under an ideal dividend policy in a growth situation, should not exceed the minimum amount necessary to maintain the market position and integrity of existing debt and equity issues and of issues contemplated in the near future’. (1) Companies concerned to grow must respect shareholders, preserve the market position of their shares, service existing debt and adjust dividend policy to potential issues of capital.

Keywords

Capital Gain Share Price Dividend Payment Dividend Policy Distribution Policy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© F. V. Meyer, D. C. Corner and J. E. S. Parker 1970

Authors and Affiliations

  • F. V. Meyer
  • D. C. Corner
  • J. E. S. Parker

There are no affiliations available

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