“the Test Of A Good Theory Is How Well It Stands Up In The Real World.

Finance theory concurs with the argument that the investors want to be commensurateness with higher risks of doing business . Miller asserted that it is the investment command and not the finance strategy . Having concluded that dividend polity to be irrelevant , he recommend that it should not seriously as an effective management tools . His support is clearer for the aim of investment decisions insteadIs the incorporate structure theory empirically confirmed Frankfurtera and Wood Jr . showcase to agree with Miller as they imbed irrelevance of the dividend form _or_ system of government . The authors purpose in conducting their research is the determination of method active , data frequency and sample period on whether these could break the inconsistency of report and they imbed that there is no dividend ideal t hat is supported consistently hence , dividend policy does not sick stock price . It should be noted that the authors were just nerve-racking to verify the work of others and not making their own research2 .2 What do persons who oppose the theory say on the other sideNot everybody in time agree with the claim of Miller . In a by Johnsona , et .

al they found relevance of dividend policy when they tested predictions of dividend signalling models by the function of close-end equity which possessed clear policies that guarantee dividends . They found that said policies were aimed to reduce share price under rating in relation to net ass et value (NAV ) and that respondents compani! es use or adopt minimum dividend policies has undergone reduced price discounts or that price are higher than used as compared to othersOther authors anyways found some validity of the relevance of dividend policy . Ang et . al , who investigated the capital structure and dividend policies of a sample of large in public traded companies in Indonesia found respondent companies to have faithful opening to...If you want to get a full essay, lodge it on our website: BestEssayCheap.com

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