Role of dividend signalling in corporate finance - Dissertation Example

Extract of sample
Role of dividend signalling in corporate finance

as a major role in corporate finance. The study also provides a detailed research on the impact of dividend announcement on shareholder. Dividend is an important parameter to evaluate investment decision by the investors. So, there is a substantial role of dividend signalling on corporate finance as companies share value of organization through dividend payment.Thus, annual dividend announcement by a company always remains the most awaited news for its shareholders. ...
Download paper

Summary

Role of dividend signalling in corporate finance Table of Content Abstract 5 Chapter 1: Introduction 5 Motivation 5 Objective 6 Significance of the study 7 Rationale of the study 7 Research question 8 Research method and data 8 Research structure 8 Chapter 2: Literature review 12 Dividend policy 12 Dividend signalling 14 Cash flow and dividend payment 18 Chapter 3: Research methodology 19 Data collection 19 Sample selection 20 Research Method 21 Permanent and temporary dividend payers 22 Chapter 4: Dividend signalling statistics 22 Dividend Initiation 22 Dividend sustainability and fare value of the firms 23 Firms propensity to dividend payment 23 Chapter 5: Dividend signalling and operating …
Author : hamillcarmine
Download 1

Related Essays

Institutional ownership and corporate value
Abstract Institutional investors are a significant financial market force. They are rapidly replacing individual investors in the capital market. Unlike individual investors, institutional investors invest large amounts of their company resources into various stocks and shares, thereby devoting many of their resources to monitoring their investment. This paper investigates whether a company’s dividend policy is affected by the level of institutional ownership. The paper focuses on Kuwaiti public companies that are listed on the Kuwait stock exchange (KSE). This study examines the...
11 pages (2761 words) Essay
The Effect of Dividend Policy: Investigate of Signaling Theory, Investors and Share Prices
P.8-10 2.2 Investigate of Signaling Theory, Investors and Share Prices…. P.10-23 3. Methodology ….….….… P.24-27 3.1 Research Hypothesis….… P.27-29 3.2 Descriptive Statistics of the determinants in efficient market…. P.29 4. Empirical Results…. P.30 4.1 Sample selection and the price effect… P.30 4.2 The application of using Regression and OLS Analysis… P.31 5. Finding and Conclusion…. P.31-32 5.1 Result of Research…. P.32 5.2 Challenge and Limitation… P.32 6. References ….…. P.34-38 7. Appendices …. P.39-40 1. Introduction In recent years, most of European...
20 pages (5020 words) Dissertation
Dividend Policy Corporate Finance Essay
Dividend policy are a very important and crucial decision for any firm and needs to be taken in a planned manner so as to have a positive impact on all stake holders. The dividend policy needs to be clearly defined and may change every year depending upon the dynamic nature of the business. The firm can choose to retain all the earnings or pay them out as dividends or even strike a balance in the two. The Traditional Theory: The traditional theory on dividend policy was established by Graham & Dodd. The traditional relationship stresses the fact that stock value is dependent on the dividends....
3 pages (753 words) Essay
Corporate Valuation, Capital Structure and Dividend policy.
News Corporation is one of the top television groups in the world. Its business includes the best broadcasting company of United States called Fox Broadcasting Company. News Corporation’s cable network programming segment produces and issues licenses for programming to be broadcast on satellite. In addition to this News Corporation is one of the best motion picture producers. Fox Filmed Entertainment is considered to be the market leader in the movie production and distribution (News Corporation, 2013). In this report, some of the strategic decisions made by the companies in the year 2012...
8 pages (2008 words) Essay
The Signalling theory
Similarly, human interactions rely on signals most of the time. The signals enable people to identify some hidden qualities of the other person. The theory focuses on providing comprehension of the varied signals as well as noting, which are dependable. For example, in making decisions, employers and managers rely on the information they obtain from the signals they receive. For instance, in making decisions about capital structures and payout policies, a manager would rely on the existing arrangement and try to evaluate its effectiveness before deciding on the next step (Chang & Hong 2000)....
7 pages (1757 words) Essay
Finance (Corporate)
This meant to give each proposal a chance to convince the capital budgeting committee for approval. The initial project concerned expanding an existing Match My Doll Clothing line, which had a demonstrated record of accomplishment in the earlier period. The subsequent project initiated a fresh initiative referred to as New Doll Film/DVD, which applied an online software permitting users to tailor a doll’s characteristic to the customers’ specifications. This required calculation of the Net Present Value (NPV) of both ventures to discover which project is more lucrative. Simulation Process...
6 pages (1506 words) Essay
Carry out your own research to find a non-financial firm that changed its dividend policy over the last few years. Assess the (p
One of the key theories that explain the relationship between dividend policy and stock price is the irrelevance of dividend policy, in which Miller and Modigliani (1961) suggest that dividend policy is immaterial when it comes to determination of the shareholders’ wealth. They specifically argued that, without considering market imperfection and taxes; the shareholders’ wealth is not affected in any way. Hakansson (1982) supported the views of Miller and Modigliani by maintaining that dividend do not play any role in the value of the firm, regardless of whether they are informative or...
14 pages (3514 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!