2014
Jun
12
Korean Companies’ Cash Flows and Dividend Policy
Bull’s Hall, 3F, KOFIA Building
- Time 14:00~16:40
Program
Allocating profits to shareholders as dividends or holding them as reserves is not only one of the key financial decisions for a company, but also one of the most frequently discussed themes for academia.
Korean companies’ dividend policy is controversial in many ways. Some insist that many Korean firms accumulate cash reserves without dividends or investments, while others argue that high dividends in companies heavily invested by foreign shareholders may undermine growth potential and drain out the national wealth. And many types of treatment are being presented to address this. But accurate treatment requires accurate diagnosis. First of all, it is necessary to identify the exact level of Korean companies’ dividends, and the mechanism in play to determine dividends. After this, the direction for a reasonable, market-based solution can be discussed.
For this, the Korean Securities Association and Korea Capital Market Institute co-host this policy symposium to strictly diagnose the current shape of Korean companies’ dividend policy, and then seek the desirable direction.
Korean companies’ dividend policy is controversial in many ways. Some insist that many Korean firms accumulate cash reserves without dividends or investments, while others argue that high dividends in companies heavily invested by foreign shareholders may undermine growth potential and drain out the national wealth. And many types of treatment are being presented to address this. But accurate treatment requires accurate diagnosis. First of all, it is necessary to identify the exact level of Korean companies’ dividends, and the mechanism in play to determine dividends. After this, the direction for a reasonable, market-based solution can be discussed.
For this, the Korean Securities Association and Korea Capital Market Institute co-host this policy symposium to strictly diagnose the current shape of Korean companies’ dividend policy, and then seek the desirable direction.