Journal of Applied Economic Research
ISSN 2712-7435
Modeling Parameters of Dividend Policy in the Context-Neutral Approach to its Implementation
Krylov S.I.
Abstract
The article is devoted to the consideration of the conceptual foundations of the formalized modeling of dividend policy indicators and derived indicators of market activity (position on the securities market) of a company as part of a neutral approach to the implementation of its dividend policy as a tool for analysis and forecasting of these indicators. The methodological basis of the study was the dividend irrelevance theory, the theory of dividend policy materiality and the concept of sustainable development of a company. It is shown that the formalization of the idea of a neutral approach to the implementation of dividend policy involves the construction of appropriate models of such important indicators characterizing the dividend policy and market activity of the company as the dividend yield coefficient, dividend coverage ratio, the expected price of an ordinary share, dividend yield of an ordinary share and the coefficient of quotation of an ordinary share (the ratio of price and profit per ordinary share). The constructed formalized models of the above indicators can be used in predictive and analytical estimates of the values of these indicators, and also allow one to identify the reasons for their deviation by calculating the impact on it of the determining factors contained in these models, performed by appropriate methods of factor analysis, as part of a neutral approach to the implementation of the dividend policy of the company. The author comes to a conclusion that the developed formal models of the most important indicators of dividend policy and derived indicators of market activity of the company are an effective tool for their analysis and forecasting, providing effective decisions on the management of dividend policy of the company choosing a neutral approach to its implementation.
Keywords
dividend policy; neutral approach; analysis; management modeling; company.
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About Authors
Krylov Sergey Ivanovich – Doctor of Economics, Professor, Department of Accounting, Analysis and Audit, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: zali6770@yandex.ru.
For citation
: Krylov S.I. Modeling Parameters of Dividend Policy in the Context-Neutral Approach to its Implementation. Bulletin of Ural Federal University. Series Economics and Management, 2019, Vol. 18, No. 3, 394–411. DOI: 10.15826/vestnik.2019.18.3.020.
Article info
Received May 20, 2019; Accepted June 3, 2019.
DOI: http://dx.doi.org/10.15826/vestnik.2018.17.3.020
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