The Development of Company Dividend Policy in Respect of Profit Distribution Priorities
The Development of Company Dividend Policy in Respect of Profit Distribution Priorities

Summary/Abstract: The selection of optimal dividend policy is one of the main questions in the company’s financial management strategy as well as the indicator of investment attraction increase instruments and financial situation change. Although this subject has been discussed by scientists from various countries for more than 40 years, it has not been surveyed so far what decisions of company profit distribution are the most rational in respect of both the company itself and investors. There is no general opinion if it is worth for the company to pursue strategically formed dividend policy and if it is so, then what dividend policy should be selected by the company seeking its strategic aim – the maximization of the company value and shareholders’ benefit. Scientists from numerous countries usually deal with effective profit distribution problems in respect of distinct interest groups. Their works lack a systemic research on dividend policy development subject to the priorities of profit distribution. Therefore, the research object of this article is the formation of dividend policy in respect of profit distribution priorities. The aim of the research is to develop a model of company dividend policy estimating profit distribution priorities.

• Details
• Contents