콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Financial Policy

Print

A thought on Korean corporate dividend policy

Related Document
Frame of Image
  • A thought on Korean corporate dividend policy
  • Kim, Joon-Seok
  • Korea Capital Market Institute


link
Title A thought on Korean corporate dividend policy
Similar Titles
Material Type Reports
Author(English)

Kim, Joon-Seok

Publisher

[Seoul]:Korea Capital Market Institute

Date 2013-11
Series Title; No Capital Market Opinion
Pages 4
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding KCMI

Abstract

Korea’s stock market provides low dividend yields. But in terms of determinants of dividend payout policy, Korea’s listed companies do not exhibit an abnormal propensity in dividend payout. Because returns from stock investments are the sum of dividends and capital gains, the dividend size should not be the sole factor for evaluating a firm’s dividend policy. It is more appropriate to compare the total returns including both dividends and capital gains to investment risk. More importantly, optimal dividend policy should reflect a company’s business conditions, future outlook, market position, and demand for dividends. In doing so, management transparency and sound corporate governance are essential.