Assignment: HSBC Case
I. What dividend policy or policies has HSBC adopted from 2009 to 2019 using financial statement analysis? Explanations need to be split into quantitative (dividend increase rate, range and standard score, i.e. standard deviation, dividend payout ratio, etc.) and qualitative perspectives (the board's strategy, scorecard, etc.) .
II. The dividend policies are mainly classified into a stable dividend policy, a stable dividend payout policy, and a residual dividend policy. Following question I, what are the advantages and disadvantages of each of the dividend policies when they are applied to HSBC?
III. What arguments for or against HSBC's new dividend policy could be formulated from:
1. The dividend irrelevance theory.
2. Bird-in-the-hand theory.
3. Tax aversion theory.
IV. How can information content theory be employed to explain the negative responses of certain retail investors?
V. What clientele effects are possibly produced by the sudden change in dividend policy?
VI. Agency issues, and the resulting costs, reflect the inefficiencies due to the divergence of interest between the parties concerned. In the context of HSBC's incident, how might agency issues between shareholders and managers, as well as between shareholders and bondholders, be induced?
VII. For HSBC, what are the considerations involved in establishing a dividend policy? Explain the reason for each consideration.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Case.rar