Dividends and Profit: Logic of Correlation
Abstract
Dividends are considered as one of the most important indicator of successful business activity. To some extent, dividend policy is regulated by corresponding federal legislation. According to the first draft of the law, the level of dividends was restricted from above by the level of net income for the reporting year. Currently, the law says about net income, i.e. it does not mention about reporting year. The logic of this change is discussed in the paper.
Keywords:
financial management
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Articles of the St Petersburg University Journal of Economic Studies are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.