Theory and practice of dividend payment policy in public joint stock companies (Part II). The impact of operating and investment activities on dividend payment policy

The dividend payment policy is a consequence of its adoption by the general shareholders’ meeting. It is the result of the interaction of many different factors, of which the past performance of the company should have a significant impact. The payment of dividends is an action of the company which leads to a reduction in the value of the company’s self-financing capital and results from the adopted strategy for increasing the company’s market value, which should be based on a sustained increase in the efficiency of the company’s operating and investment activities. Operating efficiency should be considered as an essential basis and condition for the functioning and development of the company. It is a resultant of a number of variables, dependent and independent of the enterprise, which influence the formation of the value of sales revenue, sales profitability, operating profitability. The success of activities in the operational sphere of the enterprise makes it possible to undertake and implement an investment policy, the formation of the size and structure of capital and the distribution of net profit.