The roots of the literature of determinants of dividend policy relate to the linter (1956) who conducted a traditional study on how U.S. managers formulate dividend decisions. He developed a compressed mathematical model supported on survey of 28 well recognized industrial U.S. firms which is measured to be a finance standard. In the perception of him the dividend imbursement model of a firm is prejudiced by the existing year earnings and year before dividends and after that the work was polished by the Fama and Babiak (1968) theory test of a number of alternate models for clearing up dividend behavior chains Lintner's position that managers increase dividends only after they are rationally certain that they be able to lastingly continue them at the new level. And after the both Linter and Fama and Babiak many researcher study the linter model.
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