Dividend
TABLE OF CONTENTS
List of Tables
i
List of Figures
iv
Abstract
v
Key Terms
ix
CHAPTER-1
Introduction
1.1 Introduction to Dividends
1
1.2 A Short History of Dividend Policy
6
1.3 Dividend Policy
9
1.4 Economic Rationale to Dividends
12
1.5 Dividend Policy and its Linkages with other Financial Policies
15
1.6 Pure Vs Smoothed Residual Dividend Policy
16
1.7 Dividend Declaration Process
17
1.8 Alternative Forms of Dividends
18
1.8.1 Stock Repurchases or Share buy Backs
19
1.8.2 Bonus Shares
19
1.8.3 Stock Splits
20
1.9 Declarations and Distribution of Dividends by a Company under Indian Law 20
1.9.1 Legal Regime
21
1.9.2 Mode of Declaration
21
1.9.3 Prohibition
22
1.9.4 Steps Involved in the Process of Declaration and
Distribution of Dividend
22
1.10 Dividend Payment Patterns across the Life Cycle of a Firm.
24
1.11 Dividend Distribution and its Impact on Shareholders Value
26
1.12 Dividend Payments: An Indian Scenario
29
1.13 Dividend Policy: The Global Perspective
36
1.13.1 Dividend Size and Frequency across the World
36
1.13.2 Institutional Features
37
1.13.3 Tax Differences
37
1.13.4 Dividend Payout Patterns around the World
39
1.14 Relevance and Scope of the Study
40
1.15 Chapter Plan
41
1.16 Conclusions
42
CHAPTER 2
Literature Review
2.1 Modigliani &Miller Approach (Dividend Irrelevance Proposition) (1961)
2.1.1. Conclusion
2.2 Dividend Policy and Agency Problems
44
46
47
2.2.1. Overview
47
2.2.2 Shareholders versus Debt Holders
47
2.2.3 The Differtial Impact of Dividends on Various Claimholders
49
2.2.4. Similar Conflicts
50
2.2.4.1 Shareholders versus Managers
51
2.2.4.2 Ownership versus Control
51
2.2.5 The Easterbrook Analysis (1984)
51
2.2.6 The Jensen Analysis (1986)
53
2.2.7 Other Empirical Studies on Agency
List of Tables
i
List of Figures
iv
Abstract
v
Key Terms
ix
CHAPTER-1
Introduction
1.1 Introduction to Dividends
1
1.2 A Short History of Dividend Policy
6
1.3 Dividend Policy
9
1.4 Economic Rationale to Dividends
12
1.5 Dividend Policy and its Linkages with other Financial Policies
15
1.6 Pure Vs Smoothed Residual Dividend Policy
16
1.7 Dividend Declaration Process
17
1.8 Alternative Forms of Dividends
18
1.8.1 Stock Repurchases or Share buy Backs
19
1.8.2 Bonus Shares
19
1.8.3 Stock Splits
20
1.9 Declarations and Distribution of Dividends by a Company under Indian Law 20
1.9.1 Legal Regime
21
1.9.2 Mode of Declaration
21
1.9.3 Prohibition
22
1.9.4 Steps Involved in the Process of Declaration and
Distribution of Dividend
22
1.10 Dividend Payment Patterns across the Life Cycle of a Firm.
24
1.11 Dividend Distribution and its Impact on Shareholders Value
26
1.12 Dividend Payments: An Indian Scenario
29
1.13 Dividend Policy: The Global Perspective
36
1.13.1 Dividend Size and Frequency across the World
36
1.13.2 Institutional Features
37
1.13.3 Tax Differences
37
1.13.4 Dividend Payout Patterns around the World
39
1.14 Relevance and Scope of the Study
40
1.15 Chapter Plan
41
1.16 Conclusions
42
CHAPTER 2
Literature Review
2.1 Modigliani &Miller Approach (Dividend Irrelevance Proposition) (1961)
2.1.1. Conclusion
2.2 Dividend Policy and Agency Problems
44
46
47
2.2.1. Overview
47
2.2.2 Shareholders versus Debt Holders
47
2.2.3 The Differtial Impact of Dividends on Various Claimholders
49
2.2.4. Similar Conflicts
50
2.2.4.1 Shareholders versus Managers
51
2.2.4.2 Ownership versus Control
51
2.2.5 The Easterbrook Analysis (1984)
51
2.2.6 The Jensen Analysis (1986)
53
2.2.7 Other Empirical Studies on Agency
References: 279 11. Publications 304 12. Appendix 305