“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 parallelism with higher risks of doing business . Miller asserted that it is the investment formula 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 incorporated structure theory empirically confirmed Frankfurtera and Wood Jr . vitrine to agree with Miller as they imbed irrelevance of the dividend constitution . The authors purpose in conducting their research is the determination of method diligent , data frequency and sample period on whether these could originate the inconsistency of report and they set in motion that there is no dividend typification that is supported consistently hence , dividend policy does not run 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 only 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 aim of close-end equity which possessed clear policies that guarantee dividends . They found that said policies were aimed to reduce share price under military rank in relation to net asset value (NAV ) and that ! respondents companies use or adopt minimum dividend policies has undergone reduced price discounts or that price are higher than used as compared to othersOther authors similarly 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 superb opening to...If you want to get a full essay, swan it on our website: BestEssayCheap.com

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