Statement | 1 | 2 | 3 | 4 | 5 | Total | Mean | Rank |
Dividend policy is relevant to market price | 15 | 0 | 57 | 200 | 200 | 471 | 3.81 | 8 |
Dividends affect the common stock price | 10 | 10 | 45 | 236 | 175 | 476 | 3.84 | 7 |
Dividends provide signal to investors about company’s performance | 0 | 0 | 60 | 160 | 320 | 540 | 4.35 | 1 |
Investors are indifferent between returns from dividends and capital gains | 0 | 20 | 60 | 140 | 295 | 515 | 4.15 | 2 |
A firm should formulate its dividend policy to produce maximum value for its shareholders. | 5 | 20 | 45 | 156 | 275 | 501 | 4.04 | 3 |
Increasing dividends will reduce shareholders‘ control over management | 0 | 78 | 48 | 176 | 125 | 427 | 3.44 | 16 |
A firm’s investment, financing and dividend decisions are interrelated | 0 | 40 | 75 | 196 | 150 | 461 | 3.72 | 11.5 |
A company develops its dividend policy based on the dividend tax effect on shareholders | 0 | 20 | 87 | 260 | 100 | 467 | 3.77 | 9.5 |
A firm’s dividend policy generally affects its cost of capital | 10 | 48 | 45 | 160 | 175 | 438 | 3.53 | 15 |
Paying dividends forces a firm to seek more external financing | 0 | 28 | 75 | 240 | 125 | 468 | 3.77 | 9.5 |
The company takes a dividend decision, despite being under the control of external financiers | 0 | 80 | 75 | 180 | 70 | 405 | 3.27 | 17 |
Dividends encourage a firm’s manager to act in the interest of the firm’s outside shareholders | 0 | 60 | 42 | 220 | 125 | 447 | 3.60 | 14 |
Investors generally prefer cash dividends today due to uncertain future price appreciation | 0 | 10 | 75 | 256 | 150 | 491 | 3.96 | 4.5 |
A firm should review cash dividend as a residual after funding desired investments from earnings because dividend policy is less important than investment policy | 0 | 50 | 57 | 180 | 175 | 462 | 3.72 | 11.5 |
A firm’s expenditures on new capital investments generally affect its dividend policy | 0 | 40 | 27 | 200 | 225 | 492 | 3.96 | 4.5 |
Cash dividends are considered as fixed cost of equity | 0 | 40 | 30 | 200 | 220 | 490 | 3.95 | 6 |
Cash dividends weaken the company’s financial flexibility and liquidity | 0 | 20 | 105 | 240 | 95 | 460 | 3.71 | 13 |