Payout policy is at the core of many key questions in corporate finance. In a world in which financial markets are not frictionless, how much firms pay out and which vehicle they choose to distribute cash to their shareholders may affect their valuation, has a potential impact on how much taxes investors pay, may affect management's investment decisions, and may inform the market about how good the firm is relative to its peers. In this paper the authors review the academic literature on payout policy, with a particular emphasis on developments in the past two decades. Scholarship on payout policy has made significant advancements in the last 20 years, and we now know much more about the importance of taxes, agency, and signaling motives for payout policy. Perhaps the most important change in corporate payout policy in the last two decades has been the secular increase of stock repurchases and the apparent triumph of buybacks over dividends as the dominant form of corporate payouts. Looking at the bigger picture, the authors observe that, until recently, most scholarship has analyzed payout policy in isolation. An important recent development in the payout literature has been to consider the interaction between payout and other corporate policies, such as compensation or investment. The fact that payouts are not simply residual free cash flows underlines the importance of taking seriously the interdependence of financing, investment, and payout decisions. Key concepts include: Studies centered on the 2003 dividend tax cut confirm that differences in the taxation of dividends and capital gains have only a second order impact on payout policy. Signaling theories have found only weak support, both empirically and in survey evidence, which likely explains why the notion of dividends as costly signals of firm quality to the market has become less popular. Agency has often prevailed as the alternative explanation in the horse race against signaling theories. A number of factors other than the level of free cash flow determine the level and form of payouts. More research is needed to understand even the basic elements of the corporate financial 'ecosystem', which includes financing, investment, and payout policies. Analyzing these interactions can play a key role in advancing the payout literature in the years to come. Closed for comment; 0 Comment(s) posted.
A profound accounting research papers require a great deal of work with literature sources, figures, statistics and financial accounting working papers. This task may seem to be overwhelming at first glance but being familiar with the structure of such papers, basic principle, and their purpose, you will be aimed at the highest grade and promising results. Research papers are the most formal format of academic papers that you are supposed to write at school. That is why the structure and the rules of completing such papers is a backbone of the success.
Accounting was one called “the language of business” and this definition completely serves the core function of accountancy nowadays. Accountancy is the science of measurement and interpretation of economics figures that is transmitted to the variety of economics users like investors, managers, regulators etc. Accountancy is an interdisciplinary field that has close connections with such fields of science as economics, mathematics etc. Within accounting itself can be named several sub-fields: auditing, management accounting, financial accounting, tax accounting. The topic of your research paper will depend on the sub-field your studies are concentrated.
Before setting out to write your paper, choose the topic that is narrow enough to investigate it inside and out and that is not too narrow for you to find enough information to cover and explain its essence. Next, make an outline for the paper that will encompass its preliminary structure, ideas you want to express in it, basic concepts concerning your topic, the way you will make a research, possible methods you are going to use.
Choose only reliable sources. Official websites, websites of governmental institutions, verified statistics, primary literature sources, accounting working papers, articles. Go to libraries, order articles, and previous research via the Internet if needed. By the way, a lot of students ask what are working papers in accounting. These are additional supporting reports fulfilled by accountants and analysts.
Like all the other research papers, your research paper in accounting needs to have three main components: introduction, body, and conclusion. Unless, you are required to include some other parts by the professor. The introduction part may sometimes be preceded by the abstract section. Moreover, the conclusion may be either combined or separated with the discussion paragraph. The beginning and the end of your paper is like an essential frame for your research paper. Most of the readers will read abstract and conclusion first to decide whether they are interested in your work or not. These sections are brief and provide very concise information about your paper. You may skim through other papers like chemistry papers, economics papers to have a basic idea of the structure of the research paper.
The core of the introduction is the thesis statement. This is a sentence or two that focus on the primary aspect and idea of your paper. It states a hypothesis/ proves or disproves some thought or statement. Do not forget to include aims of the research and your motivation.
The body encompasses literature part where you go into detail explaining what types of sources you used and how they are relevant to your research. Draw lines between different authors, their basic concepts, and outcomes. The methodology will help your readers to trust your research because all the methods you discuss in this section will back up your research and its results. In the body, you need to outline the results paragraph that will present just pure results without their analysis and interpretation.
The discussion and conclusion will explain all the subtleties of the research: its weaknesses, strong sides, the connection with previous surveys. This part will completely interpret results you got and will explain whether they are relevant or not. State future possibilities for the further investigation of the topic.
Common mistakes to avoid!
- The usage of the colloquial style.
- A simple description of the topic without necessary interpretation and an analysis.
- Inserting irrelevant sources (anecdotes, information from blog websites etc.).
- Subjectivity (overestimating and underestimating your outcomes, using too many adjectives especially in superlative degree).
- Grammar, spelling, stylistic mistakes.
- Digression from the topic.
Possible topic for your research paper
“Internal audit activities of commercial health care organizations”
“Methodology in statistical research of the quality of life in rural areas”
“Analytical procedures in audit of value added tax”
“Formation of commercial organizations in accounting policies”