A Theory for Payout Policy
5
Issued Date
2009
Resource Type
Language
eng
Rights
Mahidol University
Suggested Citation
Jiang, Jun (2009). A Theory for Payout Policy. Retrieved from: https://repository.li.mahidol.ac.th/handle/123456789/9964
Title
A Theory for Payout Policy
Author(s)
Other Contributor(s)
Abstract
The study looks for the theoretical dividend policy, considering firms cash flows maximization under transaction cost and capital structure, executive utility maximization implied in the performance of operation, investors’ utility maximization influenced by marginal tax and information asymmetry by allowing wealth transferring between current and future periods. It results an optimal dividend choice including 6 major factors. These are financial strategy or say capital structure of firm that reflected in level of equity and debt, scheduled constant growth of dividend by firm, market rate of return, tax shield due to debt financing, marginal personal income tax for principals and investment strategy of principals.
Description
The 4th International Conference on Regional Cooperation and Innovation in Asia for Reform and Development of Post-Crisis Era Symposium, Jinan University, Guangzhou, China, 2009 December 3-8