“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 end with higher risks of doing business . Miller asserted that it is the investment jurisprudence 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 merged structure theory empirically confirmed Frankfurtera and Wood Jr . brass instrument to agree with Miller as they imbed irrelevance of the dividend indemnity . The authors purpose in conducting their research is the determination of method diligent , data frequency and sample period on whether these could excogitate the inconsistency of report and they build that there is no dividend ensample that is supporte d consistently hence , dividend policy does not sick stock price . It should be noted that the authors were just stressful 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 but 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 drug abuse 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 asset value (NAV ) and that respondents com! panies use or adopt minimum dividend policies has undergone reduced price discounts or that price are higher than used as compared to othersOther authors alike 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 favourable opening to...If you want to get a full essay, battle array it on our website: BestEssayCheap.com

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