英语论文网

to statutory surplus reserve ; ③ Net profit: the cumulative net profit for the year must be positive , previous years' losses full cover ; ④ excess accumulated profits : Over many countries prohibit a company from accumulated profits , our country has not yet made restrictive provisions .

① surplus Stability: earnings ratio of long-term stability of the company will pay a higher unstable company dividends , and earnings instability company will generally take a low dividend policy. ② the liquidity of assets : cash dividends and pay more to maintain a certain liquidity of assets should be combined into account. ③ debt capacity : borrowing ability of the company to adopt a more liberal dividend policy , and bad debt capacity of the company should adopt a more tight dividend policy. ④ investment opportunities : the company has a good investment opportunity less its dividend payout , and the lack of good investment opportunities, the company will pay a higher dividend . ⑤ Capital Costs: If the company has expanded capital needs , capital costs from the point of view should be taken to lower dividend policy. ⑥ debt need: new debt initiative debt can also use internal accumulation , that the latter is appropriate if the company will reduce dividend payments .

① stable income and tax avoidance : to rely on dividend income subsistence shareholders want the company to pay stable dividends , rather than hope that the company retained more profits ; while some high-income shareholders do not want the company to pay higher dividends to avoid paying more more taxes. ② dilution of control : the company to pay higher dividends , it means that retained reduced, leading to increase the possibility of future issuance of new shares , thus diluting control of the company , which is the right of the existing shareholders have control unwilling to accept of

① contractual restrictions that the company 's loan agreements or bond indentures relating to restrict dividend payments terms . To prevent the large number of companies paid dividends to reduce the amount of shareholders' equity , increasing the risk of creditors , the creditors will usually require debt covenants bind the company by adding the terms of dividend , dividends per share as specified ceiling ; requirement only when a company some important financial ratios exceed the agreed minimum standards in order to dividends Paid ; dividends only from profits generated after signing a contract to pay , before signing for the payment of dividends can not be accumulated profits , and so on. ② In addition, the issuance of preference shares in the contract , usually specified in the settlement of preferred stock dividends before common stock dividends can not be paid . Provisions such as these will affect the company's dividend policy. The purpose of these contracts is to encourage enterprises as part of their profits to the requirements of the relevant provisions reinvested to enhance the economic strength to ensure the timely repayment of debt .