Corporate Finance Lectures - Lecture 76: What are the Internal Factors affecting the Dividend Policy?

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Keywords

internal internal factors affecting dividend policy dividend policy stability size of earnings liquidity ability to borrow need to repay debt investment

Full Transcript

this video explains the various internal factors which affect the dividend policy of a business such as the following: 1) Stability and size of earnings 2) Liquidity of funds 3) Investment opportunities and shareholders’ preference 4) Attitude of management towards control 5) Past dividend rates(in a new concern the rate of dividend being declared by rivals 6) Ability to borrow 7) Need to repay debt