EF4313 - Samsung's Financial Policy: Analysis of Long-Term Capital

This presentation examines Samsung's financial policies, particularly focusing on its long-term capital use. It highlights Samsung's distribution policies, noting the increased shareholder dividends since 2014 and positive market validation. The presentation also discusses important investment policies, such as the acquisition of Harman, which resulted in significant earnings per share for shareholders, and the capital raised through the launch of flagship products like the Galaxy S7. The analysis references various sources to support its evaluation of Samsung's financial strategies in light of industry competition and economic conditions.

Long Term Capital Use of
Samsung
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Distribution Policies
• Samsung pays shareholders dividends
• Since the year 2014, the company has been paying
increased shareholder dividends.
• Dividend per share increased by 28,500 (US$25) in
2017 after 8,000 won (US$7) in 2012, 14,300 won
(US$12) in 2013, 20,000 won (US$17) in 2014 and
21,000 won (US$11) in 2016 (Choi, 2016). Market
response indicated positive validation from
shareholders approval to continue long term value
creation.

Distribution Policies
• Samsung must continue distributing dividends
to its shareholders as it is anticipated to
experience larger earnings in upcoming years
through increasing demand of its advanced
display panels and memory chips (Janeczko,
2017).

Important Investment Policies
• Investment of Samsung is observed in its
acquisition strategy Harman. Through this
acquisition investment it’s shareholders will
earn $112.00 each share in cash (Iakovleva,
2014).
• This acquisition investment attained positive
market response as it attained approval from
Harman’s shareholders.

Important Investment Policies
• Samsung raises it’s capital from increasing its
revenue through launching its flagship product
Galaxy S7 (Lew, 2015).
• New editions of phones and Smartphone chips
are launched by Samsung for capitalizing on
changing consumer trend. The gathered fund
raised from sale of its competitive products are
facilitating success of its Harman acquisition
strategy.

References
• Choi, P. P. (2016). Evolution of Samsung group and its central
office: Imperfect market and capacity-building. Asian Business
& Management, 15(5), 370-398.
• Janeczko, S. (2017). Samsung Technical and Fundamental
Analysis.
• Lew, S. H. (2015). A Study on the Relationship between a Firm's
Cash Dividend Policy and Its Value in Korean Stock Market.
• Iakovleva, E. K. E. (2014). The Company’s Shareholders Award
According To Optimal Capital Structure And Dividend
Policy. Innovation Management and Company
Sustainability, 26, 89.