Abstract

The article treats a concept of the formalized modeling of the dividend policy scores and company marketing performance scores derived (stock market position) within neutral dividend policy implementation approach conditions as an instrument of the scores analysis and forecasting. The methodology of the research consists of the Dividend Irrelevance theory, Dividend Policy Significance theory and sustainable company development concept. It has been stated that a formalized approach of the dividend policy implementation presumes a construction of the basic relevent scores models characterizing the company dividend policy and its marketing performance as Dividend Payout, Dividend Cover, expected Share Price, Dividend Yield, Price / Earnings Ratio (common stock price/earnings ratio). The formalized models of the scores mentioned are applicable for a forecast-analytical scores evaluation and their variances as well by estimating an impact of the models defining factors exercised by the appropriate factoring analysis method within the neutral dividend policy implementation approach conditions. The conclusion is drawn, that the formalized models of the dividend policy scores and company marketing performance scores derived, having been developed, are an effective instrument for their forecasting and analysis so that proactive decisions to manage the company dividend policy implementation within neutral approach conditions are ensured. Keywords : dividend policy, neutral approach, analysis, forecasting, modeling, companyJEL codes: G32, G34, G35 DOI : 10.7176/RJFA/11-14-16 Publication date :July 31st 2020

Highlights

  • In present-day environment a selection of the dividend policy as a complex of decisions dealing with the Dividend Payout to shareholders is an essential aspect of the Public Limited Company (PLC) operation

  • The formalized models of the most significant dividend policy scores and company marketing performance scores derived developed within the neutral dividend policy implementation approach reflect the score dependence upon a great number of the defining factors;

  • The factoring analysis execution of the most significant dividend policy scores and company marketing performance scores derived by corresponding methods due to the formalized models principles permits finding out the basic reasons of their changes within the neutral dividend policy implementation approach;

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Summary

Introduction

In present-day environment a selection of the dividend policy as a complex of decisions dealing with the Dividend Payout to shareholders is an essential aspect of the Public Limited Company (PLC) operation. The Dividend payout decisions are generally referred to financial decisions as dividend payables reduce the company retained earnings and thereby affect the company financial position. The dividend policy significance for the company performance occurs through a few reasons. The dividend policy makes an impact on the relationship with prospect and actual investors in equity capital (share capital, first and foremost). The reason is that investors are reluctant to invest in companies reducing its Dividends Payout associating the latter with the company’s financial difficulties. Certain investors rely on their dividends as a permanent income

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