Method for determining dividend policy in developing an enterprise’s financial strategy for various market environment scenarios

Aim. The work aimed to develop a method for determining maximum permissible dividend payout ratios when developing an enterprise’s financial strategy for various market environment scenarios, as well as this method implementation algorithm.

Objectives. The work seeks to substantiate the proposed approach to assessing the impact of market environment instability on an enterprise’s key financial indicators; recommend considering the criterion of ensuring the amount of equity capital necessary to achieve the desired market share while meeting financial stability requirements when determining maximum permissible dividend payout ratios; and develop an algorithm for determining maximum permissible dividend payout ratios that includes feedback loops to verify the achievability of the target market share, as well as the need and feasibility of using the financial leverage.

Methods. The study was conducted using logical and systems approaches, employing methods of comparative, factor, and graphical analysis, synthesis, logical-mathematical and dynamic models, as well as graphical visualization. The authors considered the fundamental tenets of economic theory, financial management, and financial risk management, as well as scientific papers by Russian and international authors, published in peer-reviewed journals from international scientometric databases, and proceedings of national and international scientific and practical conferences on financial management.

Results. A method for determining the maximum permissible values of the dividend payout ratio and dividend payout fund when formulating an enterprise’s financial strategy for various market environment scenarios has been developed. This method is based on determining the amount of equity capital required to achieve the required level of capital, taking into account sufficient financial leverage of the capital stock, to achieve the target market share. It is implemented using an algorithm that assumes the presence of feedback loops to verify the achievability of the target market share, as well as the need and feasibility of applying financial leverage.

Conclusions. The authors’ proposed methodological principles for determining the maximum permissible values of the dividend payout ratio for the purposes of formulating a dividend policy within the context of developing a financial strategy advance the theoretical and methodological basis for managing enterprise capital using new digital technologies and can serve as the basis for the practical creation of effective financial management systems at enterprises in the real sector of the economy.

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