Components

Dividend Payments via Debt

Ozzie Mascarenhas SJ, Ph.D.
June 29, 2015
SKU:
BUS-003994
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: 
Free
Average rating: 
0

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.