question archive The main reason for having a dividend policy is to protect the company that there is a clear guideline of what is expected from the company from the Shareholder but also protects the expectation of the Shareholder would like to receive on an annual basis
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The main reason for having a dividend policy is to protect the company that there is a clear guideline of what is expected from the company from the Shareholder but also protects the expectation of the Shareholder would like to receive on an annual basis.From my point of view multinational companies are driven by profits thus there main aim is to generate profits and receive it immediately whereas local companies would focus on longevity and the development of the country.this would impact companies where multinationals would get financial backing from the parent company and all profits would be transferred to parent multinational whereas for us we will keep funds and strengthen our balance sheet and declare minimal dividends but grow our shareholder fundsDo you agree with this difference between a local and international company? What possible solution could you provide to such situation in saving local companies and helping them grow as well?