Substantiation of the Dividend Policy as a Tool for Improving the Corporate Governance System

Abstract

The paper aims to study the theoretical and practical aspects of dividend policy as a significant indicator of the effectiveness of management decisions. Moreover, it aims to substantiate recommendations to optimize dividend payments to increase the company’s market value. The theoretical and methodological basis of the research includes the works, developments, and scientific recommendations of financial scientists who have made a significant contribution to the development of the theory and practice of dividend policy, the relationship of stock markets and joint-stock forms of ownership, and corporate management. The research basis is the methodology and tools of corporate finance. Practical implementation of the applied methods was carried out with the help of a package of applied programs of Microsoft Excel. The main scientific results include the systematization and critical analysis of the available experience in the development of dividend policy in the corporate management system and the possibility of their practical application. The main results, conclusions, and provisions can be useful to investors, investment agencies, and analysts for forecasting changes in the level of dividends paid by companies. The most significant signs of scientific novelty are the substantiation of the author’s vision of the category of dividend policy and the identification of characteristics and development of practical tools to improve the corporation’s dividend policy. To ensure the stability of the growth of dividend payments and their insignificant deviation from the target level, it was proposed to adjust them using Lintner’s model.