Dividend Payments via Debt

Author
Ozzie Mascarenhas SJ, Ph.D.
Region
Asia - Pacific
Topic
Strategy & General Management
Ethics & Social Justice
Human Resources & Organizational Behavior
Marketing & Sales
Operations
Length
6 pages
Keywords
Dividend
payment
firm
Debt
CFO
FY14
shareholders
Hindalco
DLF
Companies Act 2009
management
Ozzie
Oswald
Masc
Ma
Mascarenhas
Student Price
$0.00
Target Audience
Faculty/Researchers
Graduate Students
Undergraduate Students

Cases in Corporate Ethics 4.3: This case discusses the rationale behind doling out dividends to shareholders at the cost of liquidity and financial robustness. It has always been hotly discussed in financial circles what the ideal strategy is for a firm that is facing cash crunch. Dividend payout, on the one hand, is an indirect indicator of performance for most of the stakeholders in a firm.