THE ROLE OF DIVIDEND POLICY IN STOCK PRICE DEDICATION IN TELECOMMUNICATION INDUSTRY: THE TRUTH OF PLDT AND GLOBE
FATIMA KAYE A. DE CHAVEZ, LORELLA A. ESPELETA and LESLIE JOY A. PATIO College of Organization and Accountancy
University of Batangas
The issue of how much a company should pay their stockholders, since dividend is one that has become of concern to managers for years. The optimal dividend policy of a firm can be defined as the best dividend payout ratio the firm can easily adopt. But , what does " best" mean in this idea? This paper is an effort to explain the result of Dividend Policy around the Stock Rates by taking the best two Telecommunications Company namely Philippine Long Distance Telephone Company and Globe Telecommunications. Other numerous websites had been reviewed to find the significance of those dividend policies on the determination of stock prices. Chart, tables and other significant data of these two telecommunication businesses which have been assessed served since the strategy used by the researchers. The research identified why these top two telecommunication companies have different gross policies becoming implemented. This kind of difference among the two firms does not have a significant impact as long as stock cost determination is concerned. The study also showed that an increase or a positive difference in the company's gross ratio gives a higher dividend among stockholders, yet several minor savings to payouts have occurred due to capital obtain during the years subject to statement, specifically about PLDT Firm. Taken as a whole, the analysis revealed many other things that since the dividend payout rate increases and dividends, their particular corresponding inventory prices react directly. On this note the analysis recommended Telecommunication Companies to take care of their current standing of pay-out percentage. This is to ensure the sufficient of gross payments to stockholders that may lead to higher stock rates in the market, which in turn eventually draws in prospective investors. Keywords: dividend policies; share price; telecommunication companies; payout ratio; traders
Gross policy can be described as widely researched topic that is certainly commonly used in neuro-scientific financial managing and investment since it is definitely equally important intended for managers and investors, as managers have to decide regarding the amount and timing of dividends plus the investors need to plan their very own return on investment collection. Dividend coverage, being an essential aspect for corporate and business finance managers of the firms (Khan, 2011), is used in knowing if to spread profits and determine what percentage of income is to be sent out to the investors by way of payouts, or to generate investment available and what proportion must be ploughed back for reinvestment purposes. And so selecting a appropriate dividend policy for a company becomes probably the most important decisions for the management and investors.
Considering that the investors are mostly concerned for the dividends that they can get out of their particular investments, one of the industries that they may consider is a telecommunication sector. It has cultivated and advanced at an incredible pace the past 20 years, considerably changing the way in which people talk and transforming everyday life along the way. Mobile phone transmission is approaching 50% throughout the world, with some older markets exceeding 100% transmission. Mobile broadband subscribership has topped 200 million globally. And the rollout of 3-G networks in emerging market segments means you will find the potential for mobile broadband subscribers to outnumber wireline broadband members within the next 10 years. This quick growth has created a dynamic and competitive industry weather with continuously evolving technology and overpowering financial buy-ins (Nielsen Market, 2009).
That is why with this environment, it is very crucial to deal with the growth of the share whilst ensuring an important return with your...
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