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