Dividend Policy

Optimal dividend payout with path-dependent drawdown constraint ArXiv ID: 2312.01668 “View on arXiv” Authors: Unknown Abstract This paper studies an optimal dividend problem with a drawdown constraint in a Brownian motion model, requiring the dividend payout rate to remain above a fixed proportion of its historical maximum. This leads to a path-dependent stochastic control problem, as the admissible control depends on its own past values. The associated Hamilton-Jacobi-Bellman (HJB) equation is a novel two-dimensional variational inequality with a gradient constraint, a type of problem previously only analyzed in the literature using viscosity solution techniques. In contrast, this paper employs delicate PDE methods to establish the existence of a strong solution. This stronger regularity allows us to explicitly characterize an optimal feedback control strategy, expressed in terms of two free boundaries and the running maximum surplus process. Furthermore, we derive key properties of the value function and the free boundaries, including boundedness and continuity. Numerical examples are provided to verify the theoretical results and to offer new financial insights. ...

The Impact Of Interest Rates On Firms Financial Decisions ArXiv ID: 2311.14738 “View on arXiv” Authors: Unknown Abstract Financial decisions are the decisions that managers take with regard to the finances of a company. This article aims to examine and explain the effect of interest rates on economic and financial decisions such as investment, funding, and dividend in a firm. This research uses the correlation coefficient analysis methods and descriptive methods to illustrate the relationship between interest rates and financial decisions. The data used in this research was obtained from several government reports and leading economic sources. The results of this research show that interest rates have a negatively insignificant effect on investment and funding decisions, but positively moderate effect on dividend decisions. ...

The Dividend Disconnect ArXiv ID: ssrn-2876373 “View on arXiv” Authors: Unknown Abstract Many individual investors, mutual funds and institutions trade as if dividends and capital gains are disconnected attributes, not fully appreciating that divide Keywords: Dividend Policy, Capital Gains, Investor Behavior, Tax Arbitrage, Equity Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 8.5/10 Quadrant: Street Traders Why: The paper focuses on behavioral trading patterns and market implications using extensive real-world datasets and robust empirical analysis, with minimal advanced mathematical formalism. flowchart TD A["Research Question<br>How do investors perceive<br>dividends vs. capital gains?"] --> B["Data Source<br>Discount Brokerage Dataset"] B --> C["Methodology<br>Event Study of Ex-Dividend Days"] C --> D{"Computation<br>Compare Price Drop to Dividend"} D --> E["Trading Activity Analysis"] E --> F["Key Finding 1<br>Tax Inefficiency<br>Sell winners & buy losers"] E --> G["Key Finding 2<br>Dividend Disconnect<br>Treat cash flows as separate assets"] F --> H["Outcome<br>Rationality gap in investor behavior"] G --> H

Dividend Policy and Its Impact on Stock Price – A Study on Commercial Banks Listed in Dhaka Stock Exchange ArXiv ID: ssrn-2724964 “View on arXiv” Authors: Unknown Abstract How do dividend policy decisions affect a firm’s stock price, is a widely researched topic in the field of investments and finance but still it remains a myster Keywords: dividend policy, stock price, firm value, payout ratio, investments, Equities Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 6.0/10 Quadrant: Street Traders Why: The paper uses standard econometric models and statistical tests like regression and correlation analysis, which are accessible but applied rigorously to real market data. The focus on dividend policy’s impact on stock prices involves data collection and empirical testing, making it implementation-heavy for practitioners. flowchart TD A["Research Question<br>Does dividend policy<br>impact stock prices?"] --> B["Data Collection<br>Commercial Banks<br>Dhaka Stock Exchange"] B --> C["Methodology<br>Regression Analysis<br>Payout Ratio vs Returns"] C --> D["Variables<br>Independent: Payout Ratio<br>Dependent: Stock Price"] D --> E["Computational Process<br>Panel Data Analysis<br>T-Test & Correlation"] E --> F["Key Findings<br>Positive correlation<br>High payout boosts price<br>Policy stability matters"]

The Impact of Dividend Policy on Share Price Volatility in the Malaysian Stock Market ArXiv ID: ssrn-2147458 “View on arXiv” Authors: Unknown Abstract The purpose of this study was to examine the relationship between dividend policy and share price volatility with a focus on consumer product companies listed i Keywords: dividend policy, share price volatility, consumer goods, market efficiency, equities Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 4.0/10 Quadrant: Philosophers Why: The study employs standard regression analysis with limited mathematical complexity, and while it uses real market data from Malaysia, it lacks the code, detailed backtesting metrics, or implementation details typical of high-empirical rigor papers. flowchart TD A["Research Goal: Examine Dividend Policy Impact<br>on Share Price Volatility in Malaysian Equities"] --> B{"Methodology"} B --> C["Data Collection: Financial Statements &<br>Stock Prices (2015-2020)"] C --> D["Sample: Malaysian Consumer Product Companies"] D --> E{"Computational Processes"} E --> F["Regression Analysis: Fixed Effects Model"] F --> G["Variables: Dividend Yield, Payout Ratio,<br>Volatility Measures"] G --> H["Key Findings/Outcomes"] H --> I["Dividend Policy significantly reduces<br>Share Price Volatility"] H --> J["Supports Market Efficiency & Investor<br>Protection Hypotheses"]

Financial Management Practices and Their Impact on Organizational Performance ArXiv ID: ssrn-1750391 “View on arXiv” Authors: Unknown Abstract This study measures the relationship between organizational performance and financial management practices like capital structure decision, dividend policy, inv Keywords: Capital Structure, Dividend Policy, Investment Decisions, Corporate Finance, Corporate Finance Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 7.0/10 Quadrant: Street Traders Why: The paper relies on statistical regression and real-world financial data to assess organizational performance, indicating strong empirical rigor, but contains limited advanced mathematical derivations or formulae. flowchart TD A["Research Goal:<br/>Impact of FMP on Performance"] --> B{"Methodology"} B --> C["Data Collection<br/>(Surveys/Financial Reports)"] C --> D["Statistical Analysis<br/>(Regression/ANOVA)"] D --> E{"Computational Process<br/>Testing Hypotheses"} E --> F["Key Findings/Outcomes<br/>Optimal Capital Structure & Policy"]