DIVIDEND POLICY AS AN INTEGRAL PART OF FINANCIAL MANAGEMENT IN THE JOINT-STOCK COMPANY MTELA. D. BANJA LUKA
DIVIDEND POLICY AS AN INTEGRAL PART OF FINANCIAL MANAGEMENT IN THE JOINT-STOCK COMPANY MTELA. D. BANJA LUKA

Summary/Abstract: Dividend policy is an integral part of the company’s financing decisions. The dividend policy represents the company’s position on determining the amount and method of paying out dividends to shareholders, as well as defining the degree of dividend stability. The essence of the dividend policy of a corporate company refers to the distribution of net profit to dividends and accumulated profit. Shareholders expect to be paid out a dividend, that is, a part of the annual profit of the joint-stock company, which they receive in proportion to their participation in the capital. Shareholders have the right to a dividend, unless the decision of a shareholders assembly, in accordance with the law and other regulations, determines that the profit will remain undistributed and be transferred to the next period, in which case the undistributed profit is recorded according to the accounting regulations. Companies adopt the dividend policy that currently best suits their life cycle stage. Dividend policies differ from country to country, from the tax system, company control, etc. The number of companies that regularly pay out dividends on the financial market of Bosnia and Herzegovina is small, in proportion to the number of joint-stock companies. The company that has been paying out dividends since 2003, year after year, is the joint-stock company Mtel a.d. Banja Luka. It is evident that the management of the company, through a strategically guided business policy, makes quality decisions and provides shareholders security for two decades, through the one hundred percent payout of dividends.

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