Here is the synopsis of our sample research paper on The Reasons for Higher Levels of Dividend Signalling in Market Based Systems when Compared to Bank Based Systems. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 8 page paper considers the reasons why dividend signalling is more influential on the market and more demanded by the market in market based systems rather than bank based systems. The writer considers the way signalling may be seen as a mechanism that overcomes the problems of asymmetry of information in a more broadly based share ownership society. The bibliography cites 10 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEdivsg1.rtf
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Unformatted sample text from the term paper:
including that of market expectations regarding the future performance of the company. The role of signalling regarding future dividends is argued to be an effective methods of management communicating
to the market, as well as the shareholders, how optimistic they are regarding the future of the company, and as such this has a knock on effect on the price
of the share (Lippert et al, 2000). In effect a tool to overcome the asymmetry of information that is endemic in the environment.
However, when we look at the signally that emanates form the different companies there are some distinct patterns. In the countries where there is a market-based system, rather than
a bank based system, this is often seen as more prevalent, with higher levels of abnormal announcements and greater reactions to the announcements in the market based systems.
If we look at the system in the UK, this is a market based system, however, if we look at Germany, and other European countries
such as Italy and France, these are more bank based, with funding originating with debt rather than share or bond issues through the market place.
The system that operate in Germany may be seen as one that is reflects a different style of corporate governance. In Germany there is a wider stakeholder
approach, where long term profits as well as other stakeholder issues have a greater degree of balance. Capitalism in Germany is also known as the social model of capitalism or
sessile marthektwirtscharft (Edye et al, 1996). Capitalism in Germany into relatively new, especially in East Germany riches only shared his communist roots in the last decade. State intervention in the
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