Answered You can hire a professional tutor to get the answer.
Hi, need to submit a 3250 words paper on the topic The Significance of Dividend Policies upon Shareholder Payments as to Whether This Has a Bearing Upon Shareholder Loyalty and Positive Behaviour.
Hi, need to submit a 3250 words paper on the topic The Significance of Dividend Policies upon Shareholder Payments as to Whether This Has a Bearing Upon Shareholder Loyalty and Positive Behaviour. Another school of thought believes that dividends are adverse for the average shareholder as they attract taxes and cause fiscal disadvantages. Last but not least the third group lauds large dividends as a positive signal to shareholders that all is well. So where does the modern shareholder satisfaction stand in relation to dividend policies This is the main issue which I will review in my paper below.
This question relates to a consideration of the corporate dividend policy as to whether shareholders should be paid sufficient dividends or whether or not they are making sizeable profits on the stock market. Over the last half-century, academics have spoken in great depth over this issue and suggested conflicting theoretical frameworks to explain their points of view. (Frankfurter 2002).The problem is that these assertions often lack the empirical depth to the criticism and stumble upon self-contradictions in an attempt to explain corporate dividend behavior. (Frankfurter 2002).Today academic opinion is divided as to whether dividends are attractive to shareholders and will have a positive impact in stock prices. (Frankfurter 2002 )Another school of thought contends that prices are negatively correlated with dividend payout levels. (Frankfurter 2002).The third view is that firm dividend policy is irrelevant in stock price valuation. (Frankfurter 2002).My paper will discuss and try to reconcile all these views towards a better theory and understanding of this issue. These views are best summed up as being based upon, the tax effect ( Litzenberger and Ramaswamy (1980),)Clientele effects explanations (Elton and Gruber, 1970), Agency theory explanations(Easterbrook 1984), Signalling models(John and Williams (1985), and psychological/sociological explanations (Frankfurter and Lane 1992). Frankfurter and Wood (2002) have even gone ahead to suggest that none of the dividend theories are unequivocally verified. .
