Dividend payout is a distribution done to stakeholders after a company in which they hold shares makes profits ( Denis, David & Osobov, 2008). It is a fixed allocation based on individual shares. The board of directors must decide the amount of dividends to be paid out. It can also act as an element that attracts investors who want more returns from their investment. In 2004, for example, Microsoft offered special, non-recurrent dividends of 3.00 per share. Given that most dividends are between $0.08 to $0.16, this served as an undertaking to motivate more investors to look into the company’s undertakings. It is also advantageous for the company because it influences individuals to invest in shares, hence directly influencing its competitiveness.
Response to Classmate
Hello. Your post about dividend distribution was precise and informative. You do a great job by explaining alternatives to dividend distribution when a company is short of liquidity. However, I recommend an in-depth analysis of the impact dividend distribution has on both the stakeholders and the company they hold shares in. A thorough analysis will make the argument more compelling to all readers.
Delegate your assignment to our experts and they will do the rest.
Week 4 discussion: ACC317
Wells Fargo is one of the largest banks in the US that has had to pay for a scandal related to fraudulent customer accounts. Particularly, there was the opening of millions of accounts without the consent of users. This was in a bid for employees to reach sales targets ( Tayan, 2019). Although a lot of bank managers were aware of the unethical conduct since 2002, they did not report it until 2016. The employees falsified records and inappropriately used customers’ information together with forged signatures to open fake accounts. Jessie Guitron is one of the individuals who blew the whistle about Wells Fargo’s fraudulent undertakings.
Jessie Guitron was fired because of her continuous complaints about unethical undertakings in the bank. One of the aspects that triggered her thoughts about fraud possibility at the bank is that employees were mandated to sign up new accounts. Due to this pressure from the management, some employees promised customers free accounts but ended up opening premium accounts, which attracted significant fees ( Tayan, 2019) . After being fired in 2010, Guitron filed a lawsuit against Wells Fargo, alleging that she was fired for being against the company’s fraudulent undertakings. The whistleblower tried to influence the management to look into the unethical undertakings. Another employee, Bill Bado, was fired in 2013 for using a hotline to report fraudulent undertakings by Wells Fargo. Employees at the company reported whistleblowers being fired for the slightest mistakes. Bado was fired eight days later. The reason given for the move was tardiness. Although Jessie and Bado sued the company for firing them based on their integrity, it was not until 2016 when the government unearthed the fraud related issues at the company.
Response to Classmate
Hello. I was impressed by your in-depth explanation about the scandal orchestrated by Elizabeth Holmes at Theranos. Your discussion discusses pertinent issues about the individual at the center of fraud at Theranos. The detailed explanation about her correspondence with Balwani and evidence in the company’s internal email about the company’s avoidance of lab inspections raises a question about the authenticity of undertakings at Theranos before its fraudulent undertakings were discovered. Your discussion about Elizabeth’s lifestyle and the motivation behind her undertakings is instrumental in influencing the reader to think about the motivation behind the fraud. I believe you delve into the case presented and unearth relevant issues. However, I recommend an in-depth analysis of how the fraud was realized in the company. Most importantly, it would have been great to analyze the whistleblowers in this case and the implications of their undertakings.
References
Denis, D. J., & Osobov, I. (2008). Why do firms pay dividends? International evidence on the determinants of dividend policy. Journal of Financial economics , 89 (1), 62-82.
Tayan, B. (2019). The Wells Fargo cross-selling scandal. Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-62 Version , 2 , 17-1.
