The impact of dividend policy on estimating the company value (illustrated by index of industrial and highly technological companies Nasdaq 100)
https://doi.org/10.21686/2413-2829-2018-5-139-148
Abstract
The dividend policy is one of the most important factors of investment appeal of securities and therefore, of making a relevant decision about their buying or selling. In case of choosing this strategy it is necessary to understand which factors influence the dividend policy and what impact it exerts on the company value. Studying sources showed that there are two points of view on this problem: that it influences the company value and that it does not. Followers of each of these views provided their arguments. Analysis demonstrated the growth in the number of publications, where on the basis of calculations it was proved that dividend policy does exert impact on the company value. The article by using the method of regressive analysis (simple regression) within the frames of three key approaches to estimation of the company value carries out empiric test of the relation between dividends being paid and the company value. Conclusions drawn by the author show both the fact of such impact and its positive nature and it can confirm conclusions made by F.Fam and K.French, which were published in 1998 about positive correlation between the dividend policy and the company value.
About the Author
E. O. Savchenko
Plekhanov Russian University of Economics.
Russian Federation
Russian Federation
Eugene O. Savchenko, PhD, Assistant Professor of the Department for Industrial Economics.
Moscow.
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Review
For citations:
Savchenko E.O. The impact of dividend policy on estimating the company value (illustrated by index of industrial and highly technological companies Nasdaq 100). Vestnik of the Plekhanov Russian University of Economics. 2018;(5):139-148. (In Russ.) https://doi.org/10.21686/2413-2829-2018-5-139-148
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