publicationethics.org

DIVIDEND POLICY AS AN INTEGRAL PART OF THE DECISION-MAKING ON FINANCING OF THE COMPANIES

10.15660/AUOFMTE.2015-3.3180

Ismet DERDEMEZ, Radoje CVEJIĆ, Zoran KALIČANIN

fakultet.tutin@live.com

Volume XXIV (XIV), 2015/3

Strong by investment and strategically well-positioned companies at the end of the business year should make a decision in which amount will refund the amount of cash to its shareholders in the form of dividends or the decision on how they plan to withdraw funds from the business, and how much to invest. Decisions are similar and it is called the dividend resolutions. The main aspect of the dividend policy is to determine the appropriate allocation of profits between dividend payments and an increase in retained earnings of enterprises.

Keywords— dividend policy, cash, profit, irrelevance, empirical testing.

ISSN 1583-0691, CNCSIS "Clasa B+"