How we are Going to Collect Data
We will go in the field with our made questionnaire and request the people to fill the data. Special focus would be given to the people who belongs to the finance department of a company and should belongs to upper management because they are the only one who can give a clear picture of the requirements of financial regulatory.
Limitation of the data
Time constrain is the biggest limitation according to my analysis because it relates to the personal belonging of a person. We think that 10% of the people fulfill their questionnaire without giving proper attention and study due to the time constrain factor. It is a small chance of error and would not impact the end result indeed.
CHAPTER-4
ANALYSIS AND DISCUSSION
Quantitative Analytical Framework
Before leap over the quantitative analysis section, there is a need to show the tools and techniques used to quantifying the analysis.
The relationship between ordinary stock price volatility and dividend policy has been analyzed utilizing multiple least square regressions.
Benchmarking to Lintner (1956)
There are two key results in Lintner (1956). First, corporate dividend decisions were made very conservatively. Second, the starting point for most payout decisions was the payout ratio (i.e., dividends as a proportion of earnings). Combining these two key features, Lintner’s empirical model of dividend policy is simple: dividends per share equal a coefficient times the difference between the target dividend payout and lagged dividends per share. The coefficient is less than one because it reflects a “partial adjustment” (dividend conservatism implies that dividends per share do not move.