Plekhanov Russian Economic Academy, Детальна інформація

. to increase EPS by reducing the number of shares related to an unchanging level of profit, and hopefully, therefore, the value of each remaining share;

. to purchase the shares of a large shareholders.

Summary

In this report we have explored an important and long-standing issue in financial research: how do corporations finance themselves, the shares issuing in the Stock Market Exchange and dividend policy of the companies.

And the situation is that the rapidly expanding companies suffer from the retained profit insufficiency and one of the solutions of this financial problem is going public.

But it is not surprising that existing shareholders dig more deeply into company’s pocket by claiming dividends. And of course the public company is subject to more scrutiny than a private one.

Thus I think only when all other sources are exhausted your can dilute already existing shareholders’ control over the company. However corporations willingly make issues of shares and pay dividends. So how are their dividend, financial and investment policy reconciled? This question has exercised the minds of academics and financial managers in recent years without any completely satisfactory answer being produced.

References

1. Anjolein Schmeits, ‘Essay on Corporate Finance and Financial

Intermediation’, Thesis publishers, 1999, 225-246.

2. Geoffrey Knott, ‘Financial Management’, Creative Print and Design, Third edition, 1998,

300-337.

3. Kovtun L.G., ‘English for Bankers and Brokers, Managers and Market

Specialists’, Moscow NIP“2”, 1994, 340-350.