Access to capital markets and ownership structure, Finance Basics

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Access to Capital Markets and Ownership Structure

 Ownership Structure

A dividend policy may be driven with Time Ownership Structure as like in small firms whereas managers and owners are same, dividend payout is generally low. In a large quoted public company however dividend payout are most important when the owners are not the managers.The preferences and values of owner managers of small group however would exert extreme direct influence on dividend policy.

Access to capital markets

Large, well established firms have access to capital markets thus can get funds more easily.They pay high dividends hence, unlike small firms that pay low dividends as high retention because of limited borrowing capacity.


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