Dividend Policy Objective

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OBJECTIVES OF THE STUDY The division of net earnings of a firm between dividend payments and retained earnings is a major financial decision. If the principal objective of a corporate financial management is to maximize the market value of equity shares, the question that naturally arises is: what is the relationship between dividend policy and market price of equity shares? This is one of the most controversial and unresolved questions in corporate finance. The present study is basically focused on the following: Nature and types of dividend polices Determinants of dividend policy Implementation of Dividend Models in the units concerned Analytical study of the units Impact of dividend policies on the share prices of the units concerned

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Dividend Policy Objective

Transcript of Dividend Policy Objective

OBJECTIVES OF THE STUDY

The division of net earnings of a firm between dividend payments and retained earnings is a major financial decision. If the principal objective of a corporate financial management is to maximize the market value of equity shares, the question that naturally arises is: what is the relationship between dividend policy and market price of equity shares? This is one of the most controversial and unresolved questions in corporate finance.

The present study is basically focused on the following: Nature and types of dividend polices Determinants of dividend policy Implementation of Dividend Models in the units concerned Analytical study of the units Impact of dividend policies on the share prices of the units concerned