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Analysis of the Sensitivity of the Corporation's Market Activity Indicators with a Neutral Approach to the Dividend Policy

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  • Sergey I. Krylov

Abstract

Under the conditions of a modern developed market economy, a fairly important characteristic of the activities of a public joint stock company (PJSC) is its activity on the stock market (market activity). This involves the development of a dividend policy, which, on the one hand, should contribute to achieving the main goal of financial management - maximizing the material well-being of shareholders , and, on the other hand, take into account the interests of all other stakeholders interested in the activities of the PJSC (including potential investors) to ensure its sustainable development in the long term. Fulfillment of this requirement is possible only within the framework of a neutral approach to the dividend policy of the public joint stock company. In this regard, the purpose of the research is to study the market activity of a public joint stock company by analyzing the sensitivity of its most important indicators to their main determining factors under the conditions of a neutral approach to the implementation of dividend policy. The working hypothesis is to consider the possibility of using the relevant elasticity models as tools for analyzing the sensitivity of the most important indicators of market activity of PJSCs to their main determining factors under the conditions of a neutral approach to the implementation of dividend policy. The generated elasticity models of the most important indicators of market activity are expected to be used in forecasting and analytical assessments of changes in their values. In addition, they will make it possible to reveal the reasons for these changes by determining the influence on the elasticity data of the determining factors included in their models through appropriate methods and techniques of factor analysis with a neutral approach to the dividend policy of a public joint stock company. The author concludes that the elasticity models he developed for the most important indicators of the activity of a public joint stock company on the stock market are sufficiently effective to change their main determining factors as tools for managing the market activity of a public joint stock company with a neutral approach to its dividend policy.

Suggested Citation

  • Sergey I. Krylov, 2024. "Analysis of the Sensitivity of the Corporation's Market Activity Indicators with a Neutral Approach to the Dividend Policy," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(1), pages 180-205.
    • Handle: RePEc:aiy:jnjaer:v:23:y:2024:i:1:p:180-205
    DOI: https://doi.org/10.15826/vestnik.2024.23.1.008
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    sensitivity analysis; elasticity; modeling; market activity; neutral approach; dividend policy; public joint stock company.;
    All these keywords.

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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