Internal Factors of Dividend Policy at the Firm Level: A Case Study of Lenovo Annual Report

DOI

10.2991/aebmr.k.210601.064How to use a DOI?

Keywords

Liquidity, profitability, dividend policy, ratios, efficiency

Abstract

This paper examines Lenovo’s 1617 Annual Report to analyze internal factors of the dividend policy. Dividend policy illustrates relevant events like whether corporations issue dividends, about what percentage of dividends would be issued and when would be the issuing date. Virtually, the main concept of dividend issuance is to distribute corporations’ net profit, which could affect both shareholder’s ownership and retained earnings. Now that dividends are vital to managers and investors, what factors can affect dividend payout? Previous studies have already shown that several external determinants matter in dividend payout. This paper mainly reports internal factors including short-term liquidity, long-term solvency, profitability and efficiency. Moreover, unlike previous articles which used experimental data analysis, this paper uses ratio analysis to present the relationship between each determinant and dividend payout. The paper illustrates that all these internal factors have positive relationships with the dividend payout ratio.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuhan Cao
PY  - 2021
DA  - 2021/06/02
TI  - Internal Factors of Dividend Policy at the Firm Level: A Case Study of Lenovo Annual Report
BT  - Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)
PB  - Atlantis Press
SP  - 363
EP  - 368
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210601.064
DO  - 10.2991/aebmr.k.210601.064
ID  - Cao2021
ER  -