Dividend irrelevancy theory and Microprudential: Difference between pages

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imported>Doug Williamson
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In financial theory dividend payments and policies should be irrelevant when financial markets are efficient.  
''Bank regulation''.  


But in practice decisions about dividend levels are important because of:
The part of the regulatory framework which is designed to enhance the safety and soundness of individual financial institutions, rather than the financial system as a whole.


#Their informational content. This informational content is known as ''signalling''.
#The potential to move closer to, or away from, a firm's optimal capital structure.


== See also ==
* [[Bank supervision]]
* [[Capital adequacy]]
* [[Macroprudential]]


== See also ==
[[Category:Accounting,_tax_and_regulation]]
* [[Lintner]]
[[Category:The_business_context]]
* [[Residual theory]]
* [[Rights issue]]
* [[Capital structure]]

Latest revision as of 07:33, 29 June 2022

Bank regulation.

The part of the regulatory framework which is designed to enhance the safety and soundness of individual financial institutions, rather than the financial system as a whole.


See also

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