Author : Dr. Yoser Gadhoum 1
Date of Publication :11th December 2021
Abstract: Cash distribution of an organization has helped to develop the organizational market position. In the marketplace, the business organizations provide dividend payment to improve organizational performance. Along with that, Canadian business organizations have taken the approach of dividend payment to develop organizational revenue. Moreover, dividend payment of the business organization has provided advantages and disadvantages to the business organization in the marketplace. The advantage of dividend payment is establishing a positive reaction about the business organization in the marketplace. Moreover, dividend payment has helped to make an appropriate framework of ownership in the business firm. On the other hand, the disadvantage of dividend payment in the marketplace is that it negatively affects the management process of the organization. Along with that, this research paper has included theories to analyze the importance of dividend payment in the business organization. Moreover, hypothetical analysis has helped to understand effectiveness of cash flow distribution in a business organization of a Canadian firm. As per the result of this research paper has indicated dividend payment has helped to establish proper ownership of the organization to develop organizational performance.
Reference :
-
- ADJAOUD, F., 1984, «The Information Content of Dividends: A Canadian Test», Revue canadienne des sciences administratives2 16, 338-351
- AHARONY, J. et I. SWARY, 1980, «Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An empirical Analysis», Journal of Finance, mars 1-12.
- BHATTACHARYA, S., 1979, "Imperfect Information, Dividend Policy, and the 'Bird in the Hand' Fallacy", Bell Journal of Economics 10, 259-270.
- CHAREST, G., 1978, «Dividend Information, Stock Returns and Market Efficiency», Journal of Financial Economics 6, juin, 297-330.
- CHAREST, G., 1980, «Returns to Dividend Changing Stock on the Toronto Stock Exchange», Journal of Business Administration 12, 1-18.
- EASTERBOOK, F. H., 1984, "Two Agency-Cost Explanations of Dividends", American Economic Review 74, 650-659.
- ECKBO, B.E. and S. Verma, 1994, "Managerial Shareownership, Voting Power and Cash Dividend Policy", Journal of Corporate Finance l, 33-62.
- GADHOUM, Y., 1995, «Concentration de la propriete et politique de dividendes», Administration Science Association of Canada Proceedings, Vol. 16, N° 1.
- HIGGINS, R.C., 1972, "The Corporate Dividend Saving Decision", Journal of Financial and Quantitative Analysis 7, March, 1527-1541.
- JENSEN, M.C., 1986, "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers", American Economic Review 76, Papers and Proceedings, May, 323-329.
- JOHN, K. and J. WILLIAMS, 1985, "Dividends, Dilution and Taxes: A Signalling Equilibrium", Journal of Finance 40, 1053-1070.
- MILLER, M. and F. MODIGLIANI, 1961, "Dividend Policy, Growth, and the Valuation of Shares", Journal of Business, 411-443. [13] MILLER, M. and K. ROCK, 1985, "Dividend Policy Under Asymmetric Information", Journal of Finance, September, 1031-1051.