Why companies pay dividend Essay Example | Topics and Well Written Essays - 1500 words

Why companies pay dividend - Essay Example The different tax treatment between dividends and capital gains however generally work against the former. A number of companies pay dividends and in some, it is a given in the way their organizations are run. This paper will explore why anyone cares about it at all. Specifically, this paper will address the questions why companies pay dividends; why investors pay attention to it; do dividends affect an organization’s value and how do managers use dividends in the organizational financial management; among others. The idea is to identify whether dividends have any bearing or effect on an organization particularly in terms of equity and firm value. The review on the current dividend literature provided in the following section is particularly focused on the areas related to the positive and negative characteristics of dividends to business organizations. Such outline of studies was aimed at determining how other scholars answered the question posed by this paper. The review summarizes the current studies and research on dividends policy, particularly. An important dimension to the review, however, which would have a pivotal effect on this paper as a whole was the passage of the Jobs and Growth Tax Relief Reconciliation Act. The corpus of literature available in regard to corporate payout policy and dividends is extensive. However, this review would focus on two major areas: why do dividends matter for corporations and does it matter how business organizations distribute cash to its shareholders. Miller and Modigliani are considered to be the authorities in regard to framing dividend questions in their finance research. They, particularly focused on how dividend policy is considered a choice between financing with internal equity or financing with external equity. In their study, Miller and Modigliani offered proof that dividends do not matter in a world that is characterized by

Social Psychology Assignment Example | Topics and Well Written Essays - 500 words - 1

Social Psychology - Assignment Example Second, when I was in my college, my mother once asked me to clean up my cupboards and bookshelves and I would delay the task out of my laziness. After some days, when I finally decided to obey, I emptied my cupboards only to find out that my favorite T-shirt, which I had bought with my own pocket money for the farewell party, had been eaten up by insects! How I wished I had listened to my mom. Third, on a serious note, my mother stopped me from being too submissive to my fiancà ©, but I did not listen to her. I would listen to my fiancà ©Ã¢â‚¬â„¢s crappy things he talked about my parents but could not do anything because I was too much involved. He took advantage and defeated me psychologically. After months, I found out that a person does not get respect from anybody if he does not respect himself. By definition, â€Å"counterfactuals are mental representations of alternatives to the past and produce consequences that are both beneficial and aversive to the individual† (Roese, 1997, p. 133). The three events I mentioned relate to upward counterfactual thinking. I could have said no to my friend who asked me for combined study and that would have led to my staying at home and studying properly for a high grade. Here, I am thinking about a better consequence that would have resulted if I had altered my action and had come up with a better decision. Again, if I had listened to my mom about cleaning up my cupboard, I could have saved my favorite T-shirt. Once again, a better result could have achieved by altering my action. Also, if I had listened to my mom about not letting my fiancà © say abusive things about my family, I could have succeeded in gaining a respectful place in my his eyes and could have made him respect me. I could have saved the relationship by pondering deeply upon the facts of life. The regrets I described are â€Å"feelings† while these counterfactuals are