Project Dissertation: Analysis of Dividend Policy and Firm Valuation

This project dissertation proposal explores the impact of dividend policy on firm valuation, with a focus on firms listed on the Australian Securities Exchange. The research aims to understand how dividend decisions, along with financing and investment decisions, affect firm value and shareholder wealth. The report includes a preliminary literature review, research aim, and research question, along with a detailed research plan outlining data collection methods (secondary data), data analysis techniques (qualitative content analysis), and a Gantt chart for project management. The study will utilize journals, books, and online sources to gather information, emphasizing the importance of dividend policy in signaling financial strength and influencing investor behavior. The project seeks to provide insights into how dividend strategies can maximize firm value and returns for shareholders, offering suggestions for increasing dividends within a firm. The report also includes an analysis of the data analysis method, and the Gantt chart for the project.

Running Head: PROJECT DISSERTATION
Impact of divined policy on the firm value

PROJECT DISSERTATION 2
Table of Contents
Introduction................................................................................................................................3
Research aim..........................................................................................................................3
Research question...................................................................................................................3
Preliminary literature review......................................................................................................3
Research plan.............................................................................................................................5
Data collection method...........................................................................................................5
Data analysis method..............................................................................................................6
Gantt chart..................................................................................................................................7
References..................................................................................................................................9
Appendix..................................................................................................................................11
Gantt chart................................................................................................................................11

PROJECT DISSERTATION 3
Introduction
This section could lead to a researcher for getting theoretical data with respect to the research
issue. It could also be imperative for the accomplishment aim and objectives of the research
in the least time and cost. Furthermore, it is evaluated that there are certain sources that are
considered by named books, journals, offline and online sources, and magazines. It could
lead to the firm to get the data with respect to the research issue and meet the desired aim.
Research aim
This research study is emphasized on evaluating the impact of dividend policy on firm
valuation. The following objectives will be accomplished by the researcher to meet the aim of
the research:
 To explore the concept of the dividend policy and firm value
 To examine the impact of dividend policy on firm value
 To suggested approaches for increasing dividend in the firm
Research question
 What is the impact of dividend policy on the firm value?
Preliminary literature review
Travlos, Trigeorgis, & Vafeas, (2015) stated that dividend policy is defined as rules and
regulation that might be followed by the organization to determine the amount of profit after
tax that will pay out to the specified shareholders. It is also stated that the selection of
payment amount of dividend could be ultimately decided by the top management of the firm.
Further, once the dividends could be declared then it cannot be simply overturned. In
addition, it is examined that there are many ways by which dividends could be paid in form
of cash.
In support of this, Masum (2014) examined that dividend could support the organization to
improve their value and get higher profit. Cash dividends could be determined as the

PROJECT DISSERTATION 4
payments of cash from the organization ’s profit after tax to their stakeholder. Furthermore, it
is evaluated that payment of dividends cannot exceed the fixed earnings of the individuals.
Moreover, it is evaluated that organizations many have their authorization that could make
rules and regulation for the payment of the dividends. Moreover, private organizations do not
have the same requirements of disclosure.
On the other side, Renneboog & Szilagyi, (2015) illustrated that the financial strength of the
firm could also be improved by the dividends. It could be a sign of financial strengths. It
demonstrates that the dividend-paying organization is self-assured to create the cash flow in
the upcoming period for returning of their shareholders. The organization cannot make a
decision in the context of payment decision. Investigators expect to the dividend paying firm
to increase dividend payments as it could be effective for making a reliable decision in the
context of investment. The top management of the organization could effectively decide the
amount of dividend for increasing the investors towards the organizational task.
Apart from this, Oyinlola & Ajeigbe, (2014) stated that dividends could demonstrate the
mature organization with reliable profits and sales. Mature organizations have their own
dominant market conditions that tend to create free cash. It is stated that a start-up
organization may not create a higher amount of money and free to tend to cash flow whatever
amount it creates could reorganize it back into their business. It is evaluated that a
multinational organization could use different or attractive investment options and determine
the methods as it facilitates to increase investment in the organization. It could be effective
for making a positive image of the firm in the marketplace.
In support of this, Priya & Mohanasundari, (2016) examined that a dividend payment might
be a sign of the return on investment. The organization who has the higher share price could
more influence the level of return of shareholders. Sometimes, the organization could get
higher profit but they did not share the amount of profit to their shareholder that could create

PROJECT DISSERTATION 5
a problem for shareholder for investing in the same organization in the upcoming period. In
addition, it is also examined that most of the organization believed that dividend payments
could be signal of making a higher profit for the long term. It could also enhance the
possibilities of organization sustainability in the marketplace.
Hunjra, Ijaz, Chani, & Mustafa, (2014) suggested that shareholder could invest their
property, cash, and imperative assent any particular business hence organization should need
to increase the paid capital and make an opportunity to retain their shareholder for long-term.
It can also be imperative for the accomplishment of the organizational task. Apart from this,
it is evaluated that the organization could decrease liabilities for making higher competitive
benefits. Further, the equity of shareholders could be equal to the amount that is come from
the completion of total liabilities to the available total assets. If an organization has lower
liabilities and expenses and higher total assets, which means there are possibilities of getting
higher dividends.
Baker & Weigand, (2015) recommend that if the organization could consider some others
methods then they could also improve the dividend interest level in the least time named
enhancement in the net income, enhancement in outstanding shares, and enhancement in the
retained earnings. These methods could play an imperative role in the accomplishment of the
organizational task.
Research plan
A research plan could be crucial for making a decision about research tools and techniques
that will be considered by the investigator to conduct research and make a reliable decision in
the context of current matter (Lashgari & Ahmadi, 2014). Moreover, it is examined that
research methodology could consider many tools to perform research named data analysis
method and data collection method as it is described below:
Data collection method

PROJECT DISSERTATION 6
The data collection tool is crucial from the perspective of the investigator to meet the aim of
the research. Furthermore, it is evaluated that once the investigator is failed to select suitable
data gathering tool then it could influence the overall outcome. Finally, it could be imperative
to obtain a reliable result (Yegon Cheruiyot, & Sang, 2014). Furthermore, the information
gathering tool could be determined on the basis of the research subject. If the research is
emphasized on the qualitative data then the researcher could select the secondary data
collection method for conducting the research. Apart from this, it is evaluated that the
secondary data collection tool could not be considered if the research is exploratory in nature.
Moreover, it is evaluated that if the research scholar has selected the quantitative research
they the primary data collection method will be practiced as it could be imperative for getting
positive responses (Breuer, Rieger, & Soypak, 2014). Furthermore, data collection technique
could be imperative for obtaining the data by different tools named primary fathering
information and secondary gathering technique. For performing this study, the researcher will
choose the secondary data collection tool as it facilitates to get the reliable data as compared
to the primary information gathering tool. This tool is more appropriate this method could
secure the cost and time of the research in getting reliable information. The main reason of
not section o the primary data collection that as it offers an opportunity to conduct a direct
interview and make a favorable decision in the context of the current issue (Fairchild, Guney,
& Thanatawee, 2014). This process could take a huge amount of cost and time consuming
hence the secondary data collection tool could be more effective in performing the research
and met the research issue. Apart from this, it is evaluated that researcher will consider
secondary data collection tool for investigator as it permits to get a favorable outcome in the
context of the impact of dividend policy on the firm value (Kumaresan, 2014). Furthermore,
it is examined that there are many methods, which are included by the investigator such as
journals, books, academic, and online and offline sources. It could also be imperative for

PROJECT DISSERTATION 7
getting a positive result. It could be effective for the completion of the research task. In
addition, it is examined that there are certainly effective for the accomplishment of the
organizational task (Barakat, 2014). Furthermore, it is examined that the secondary data
collection tool could be crucial in enhancing the trustworthiness of the research result. It
could be related to the depth understanding of the research result. Thus, it is evaluated that
secondary data collecting method could be more liable as compared to the primary data
collection tool (Maldajian & El Khoury, 2014).
Data analysis method
The data evaluation could be imperative for evaluating the gathered information and conduct
the study and make a favorable decision with respect to the research matter. Further, it is
evaluated that the data evaluation tool entails creation techniques to evaluate the data named
quantitative and qualitative data analysis method. For this study, the investigator will
consider the qualitative data analysis technique wherein the researcher will consider certain
sources named content analysis method (Barakat, 2014). This method will assist the
investigator to critically examine the collected data and research at the valid conclusion.
From the application of this method, it could be crucial for examining the impact of dividend
policy on the organizational value. In addition, it is also examined that the data analysis tool
could lead to obtain feasible information and reach at the reliable conclusion (Maldajian & El
Khoury, 2014).
Gantt chart
Gantt chart is an imperative tool for determining the time for the accomplishment of the
research activity in the upcoming period (Kumaresan, 2014). It could be effective in
reaching a reliable conclusion. In this study, the timing of the research activity is
demonstrated by the following table and chart:

PROJECT DISSERTATION 8
Research milestone Initial Day Last Day
Duration
(months)
Identification of research
issue 19-12-2018
20-01-
2019 31
Literature Review 21-01-2019
23-02-
2019 32
Data collection form the
secondary data collection
tool 24-02-2019
25-04-
2019 61
evaluation of collected
data by a qualitative data
analysis method 26-04-2019
26-05-
2019 30
Final submission of report 27-05-2019
28-06-
2019 31
Identification of research issue
Literature Review
Data collection form the secondary data collection
tool
evaluation of collected data by qualitative data
analysis method
Final submission of report
4/10/2018 10/27/2018 5/15/2019 12/1/2019
12/19/2018
1/21/2019
2/24/2019
4/26/2019
5/27/2019
31
32
61
30
31
Gantt chart
Initial Day Duration (months)

PROJECT DISSERTATION 9
From the above table and chart, it is examined that researcher has considered many research
activities named Identification of research issue, Literature Review, Data collection form the
secondary data collection too, evaluation of collected data by qualitative data analysis
method, and Final submission of the report. It is also evaluated that the data collection
method could take more time as compared to the others research activity that could influence
the overall outcome of the research. Hence, the researcher should need to comprehend this
research activity for the accomplishment of the task in limited time and cost.

PROJECT DISSERTATION 10
References
Baker, H. K., & Weigand, R. (2015). Corporate dividend policy revisited. Managerial
Finance, 41(2), 126-144.
Barakat, A. (2014). The impact of financial structure, financial leverage, and profitability on
industrial companies shares value (Applied study on a sample of Saudi
industrial companies). Research Journal of Finance and Accounting, 5(1), 55-
66.
Breuer, W., Rieger, M. O., & Soypak, K. C. (2014). The behavioral foundations of corporate
dividend policy a cross-country analysis. Journal of Banking & Finance, 42,
247-265.
Fairchild, R., Guney, Y., & Thanatawee, Y. (2014). Corporate dividend policy in Thailand:
Theory and evidence. International Review of Financial Analysis, 31, 129-151.
Hunjra, A. I., Ijaz, M. S., Chani, M. I., & Mustafa, U. (2014). Impact of Dividend Policy,
Earning per Share, Return on Equity, Profit after Tax on Stock Prices.
Kumaresan, S. (2014). Impact of Dividend Policy on Share Holders’ Wealth. International
Journal of Technological Exploration and Learning, 3(1), 349-352.
Lashgari, Z., & Ahmadi, M. (2014). The impact of dividend policy on stock price volatility in
the Tehran stock exchange. Kuwait Chapter of the Arabian Journal of Business
and Management Review, 3(10), 273.
Maldajian, C., & El Khoury, R. (2014). Determinants of the dividend policy: An empirical
study on the Lebanese listed banks. International Journal of Economics and
Finance, 6(4), 240.
Masum, A. (2014). Dividend policy and its impact on stock price–A study on commercial
banks listed in Dhaka stock exchange.

PROJECT DISSERTATION 11
Oyinlola, O. M., & Ajeigbe, K. B. (2014). The impact of dividend policy on stock prices of
quoted firms in Nigeria. International Journal of Economics, Commerce and
Management, 11(9), 1-17.
Priya, P. V., & Mohanasundari, M. (2016). Dividend Policy and Its Impact on Firm Value: A
Review of Theories and Empirical Evidence. Journal of Management Sciences
and Technology, 3 (3).
Renneboog, L., & Szilagyi, P. G. (2015). How relevant is dividend policy under low
shareholder protection?. Journal of International Financial Markets,
Institutions, and Money.
Travlos, N. G., Trigeorgis, L., & Vafeas, N. (2015). Shareholder wealth effects of dividend
policy changes in an emerging stock market: The case of Cyprus.
Yegon, C., Cheruiyot, J., & Sang, J. (2014). Effects of dividend policy on the firm’s financial
performance: Econometric analysis of listed manufacturing firms in
Kenya. Research Journal of Finance and Accounting, 5(12), 136-144.

PROJECT DISSERTATION 12
Appendix
Gantt chart
Gantt chart is an imperative tool for determining a time for the accomplishment of the
research activity in the upcoming period (Kumaresan, 2014). It could be effective in
reaching a reliable conclusion. In this study, the timing of the research activity is
demonstrated by the following table and chart:
Research milestone Initial Day Last Day
Duration
(months)
Identification of research
issue 19-12-2018
20-01-
2019 31
Literature Review 21-01-2019
23-02-
2019 32
Data collection form the
secondary data collection
tool 24-02-2019
25-04-
2019 61
evaluation of collected
data by a qualitative data
analysis method 26-04-2019
26-05-
2019 30
Final submission of report 27-05-2019
28-06-
2019 31

PROJECT DISSERTATION 13
Identification of research issue
Literature Review
Data collection form the secondary data collection
tool
evaluation of collected data by qualitative data
analysis method
Final submission of report
4/10/2018 10/27/2018 5/15/2019 12/1/2019
12/19/2018
1/21/2019
2/24/2019
4/26/2019
5/27/2019
31
32
61
30
31
Gantt chart
Initial Day Duration (months)