ISSN: 2222-6990
Open access
Dividend policy is considered to be one of the most important financial decisions with implications on the share’s price and therefore on profitability or on financing investment projects that can generate an increase in the company’s value. In order to identify the correlation between dividend policy and corporate performance of 55 companies listed on the Bucharest Stock Exchange in 2010-2013, we have tested the relationship between dividend per share, dividend in the previous year, on the one hand and earnings per share, return on assets (ROA), return on equity (ROE), return on the share, Tobin Q, market to book ratio, free cash flow (FCF). The only variable influenced by the dividend per share, dividend in the previous year (DIVt-1) is the profit per share.
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Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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