Management of Capital and Dividend Policy in Corporate Finance of Large Corporations

Abstract

Effective allocation and management of capital resources are crucial for sustaining and growing large corporations in the modern business environment. Among the most critical decisions in corporate finance, capital management and dividend policy play pivotal roles in shaping the financial structure and performance of these enterprises. This article explores the relevance, strategies, and consequences of capital management and dividend policy within the context of large corporations.

The purpose of the article is to provide a comprehensive understanding of how large corporations manage their capital and formulate dividend policies to optimize shareholder value, considering various internal and external factors.

Methods: analysis, synthesis, abstraction, comparison.

Results. Significant interrelations between capital management decisions, dividend policy, and key financial indicators such as profitability, liquidity, and leverage have been identified. Simultaneously, this study analyzes factors influencing capital management and dividend policy choices, including industry conditions, regulatory environment, and market conditions. It also highlights the impact of macroeconomic variables and corporate governance practices on these decisions.

Conclusions. The research results underscore the importance of a balanced approach to capital management and dividend policy formation, taking into account the long-term interests of both shareholders and the corporation. The obtained data indicate that effective capital allocation strategies and dividend policies contribute to increasing shareholder value and financial stability, thereby fostering the sustainable growth of large corporations.

Perspectives. In the future, the conducted research outlines several directions for future scientific inquiry, including the study of the role of behavioral factors in capital management decision-making, exploration of the impact of technological progress on dividend policy formation, and analysis of the effectiveness of alternative theories of capital structure in different market conditions. Overall, this work contributes to the existing knowledge base in corporate finance and provides important information for practitioners, policymakers, and scholars.