Does it matter whether or not firms pay dividends Essay

Does it matter whether or not firms pay dividends - Essay Example This research will begin with the statement that one of the essential parts of a company investment return is a dividend. Being paid on an annual or quarterly basis, a majority of companies pay dividends to the shareholders while others retain their entire profit and reinvest. Even though reinvesting back the profit is vital for the future expansion of the company, it significantly matters whether firms pay dividends. Based on the importance of shareholders in the capital growth of any company, it is fundamental for the management to rewards the shareholders by giving them a portion of the company profits so that they can use it for their own investment or education of their children among other personal use. A company that regularly pays dividends to its shareholders indicates fundamentals. In the 1930s before firms were under legal obligation to pay a dividend, their financial health was indicated by their ability to pay a dividend. Notwithstanding the laws and legislation such as the securities and exchange act of 1934 that brought about a significant level of transparency in the financial management of firms, dividends are still a notable yardstick of the company performance. Â  Mature companies pay dividends and still retain more profits for reinvesting. A good example of a company that has benefited from giving its shareholders dividends is Microsoft. During the early years of the company operations, the company did not pay dividends but it reinvested a significant portion of its profit for future growth.

Low-Cost Leadership Training Program Essay Example | Topics and Well Written Essays - 500 words

Low-Cost Leadership Training Program - Essay Example Developing an efficient leadership development program is crucial to the performance of an organization. The paper will analyze the best approach to developing a leadership development program outlining the pros and cons associated with it. The development of a leadership training program should be based on three stages. The first stage is where the company plans for the development of a leadership development program (Fairley, 2015). The organization has to examine what it currently has in place so that they can gauge the efforts needed to train their employees. At this point, the organization needs to analyze the benefits of training their employees and the costs to be incurred. The organizational leadership training program should produce benefits that exceed the costs. The benefits should not be determined at the inception stage as the training achieves both short-term and long-term benefits. The next step in developing a low-cost leadership training program is the identification of employee characteristics. Since not all employees can make great leaders, the organization should provide the employees an opportunity to form teams and through these groups employees with the potential to become leaders get identified (Johnson, 2013). Once the groups are formed, the organization should provide them with adequate infrastructural support to ensure the objectives they seek get accomplished. The employee morale is increased through achieving goals and objectives, and leadership qualities improved (Johnson, 2013). Once the outline has been achieved, the next stage in developing a low-cost leadership training is practicing leadership development (Fairley, 2015). The training should include elements such as providing the leader with opportunities to achieve effective communication, conflict resolution, and time management (Fairley, 2015). Development of leadership abilities can be through