Regulating Aspects of Dividend Policy in the Business Sector of Georgia (სადივიდენდო პოლიტიკის რეგულირების მექანიზმები საქართველოს ბიზნესსექტორში)
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The paper considers and analyses the dividend policy issues in the
business sector of the economy of Georgia where the role and importance of
dividend policy for business entities are discussed, the entrepreneural and
taxation asspects of dividend distribution are considered, the specificity of
profit utilization is underlined, the active and passive dividend policy directions
are analysed, the factors impacted on dividend policy of the business entities
are presented, the peculiarities of both private and state enterprises dividend
approaches are charachterised.
Among the financial decisions of any business entity a dividend policy
and the relevant decision is of utmost importance due to its cpecificity and
complexity as the dividend distribution mechanism impacts upon a market value
as well as future operation. A dividend policy depends on the financial results
of a company and reflects the process of financial results distribution. Therefore
the dividend distribution decision is a sphere of operating responsibility of
financial managers.
The process of the dividend distribution and utilization is regulated by
entreprenueral and taxation legislations in Georgia. Partly it is related to
an “Estonian” model of taxation. It should be undelined that the main form
of dividend payment remains the cash dividends and the key methods are
the percentage and the fixed ones that is determined of the lack of ecient
capital market operation in the country. Herewith, the specific rule is instituted
concerning the state enterprises dividend distribution. Accordingly, the proper
implementation of dividend policy in business sector requires analysis of factors
eected on dividend decisions, perfection of inner corporate approaches, taking
into consideration of entreprenueral-taxation aspects and correct usage of
analitycal instruments of dividends assessment.
Description
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Keywords
dividend; dividend policy, profit distribution, cash and non-cash dividends
Citation
Economics and Business, №2, 2020, pp. 147-151