金融经济学dividendpolicy课件推荐.pptVIP

Dividend Policy The Questions What is dividend policy? How do companies pay dividends? How to evaluate a firm’s dividend policy? Does it matter at all? What is Dividend Policy? The choice of paying dividends now or in the future, or to pay dividends or repurchase shares, for a given investment policy Dividend policy tends to be stable: Regular cash dividend: the usual dividend Special dividend How do companies pay them? Declaration date: date when the board announces the dividend payment Holder-of-Record date: list of current shareholders is finalized and closed Shares are traded cum dividend till (normally) four days before the record date The first date the stock trades without dividend is the ex dividend date Payment date Measures of Dividend Policy Dividend per share Dividend payout: net profit/shares Dividend yield: dividend per share/dividend price (price per share) The Relevance of DP Assumptions: No taxes No financial distress costs Symmetric information on the firm’s investment opportunities CS (capital structure) and investment opportunities are independent Proposition: Under the assumptions above two firms with different dividend policies have the same market value (MM) Example All equity firm, 100 shares Liquidation in two years’ time The firm generates 10,000 a year in the next two years Discount rate = 10% Current policy: pay out all cash flow: Example Alternative Policy: Initial dividend = 110 (instead of 100) This requires additional financing 110 – 100 = 10 per share Assume new shares are issued New shareholders require still 10%, so they demand: 1,000 x 1.1 = 1,100 of date 2 cash flow This leaves 10,000 – 1,100 = 8,900 to the old ones Example For the old shareholders: Conclusion Dividend policy makes no difference because an early increase in dividends is offset by a future decrease in them. Considering the financing cost, the net effect is zero Check: you could also finance the dividend in the second scenario using debt (instead