“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 eternal sleep with higher risks of doing business . Miller asserted that it is the investment rule 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 coordinated structure theory empirically confirmed Frankfurtera and Wood Jr . tone to agree with Miller as they imbed irrelevance of the dividend insurance . The authors purpose in conducting their research is the determination of method sedulous , data frequency and sample period on whether these could chew over the inconsistency of report and they assemble that there is no dividend instance that is supported con sistently hence , dividend policy does not function stock price . It should be noted that the authors were just disagreeable 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 barely 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 rehearse of close-end equity which possessed clear policies that guarantee dividends . They found that said policies were aimed to reduce share price under valuation in relation to net asset value (NAV ) and that responden! ts companies use or adopt minimum dividend policies has undergone reduced price discounts or that price are higher than used as compared to othersOther authors in any case 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 honourable opening to...If you want to get a full essay, ready it on our website: BestEssayCheap.com

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