Open AccessThe impact of dividend policy on estimating the company value (illustrated by index of industrial and highly technological companies Nasdaq 100)
Author(s) -
Савченко Евгений Олегович
Publication year - 2018
Publication title -
vestnik rossijskogo èkonomičeskogo universiteta imeni g. v. plehanova
Language(s) - English
Resource type - Journals
eISSN - 2587-9251
pISSN - 2413-2829
DOI - 10.21686/2413-2829-2018-5-139-148
Subject(s) - dividend policy , dividend , value (mathematics) , appeal , financial economics , economics , investment (military) , index (typography) , enterprise value , business , econometrics , actuarial science , accounting , finance , statistics , mathematics , politics , computer science , political science , law , world wide web
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.