Over the past decade, dividend policy has become a fundamental element of the financial strategy of joint-stock companies, as it has a direct impact primarily on the corporate governance of the company. It can be considered that dividend payments are most often connected not with financial indicators, but with a significant improvement of the quality of corporate governance in the company, i.e. dividend payments are more likely an element of corporate governance. In essence, the high quality of corporate governance somewhat reduces the likelihood of making the wrong decision.
To the qualitative indicators, showing the status of the company the quality corporate governance can be added for the assessment of the bankruptcy of economic entities. If the quality of corporate governance is considered as a new one, added to the composition of qualitative indicators, then in general a number of signs indicating the pre-bankrupt state of the economic entity and not reflected in the financial statements can be offered.
Timely disclosure of information is accepted as the most important factor in improving corporate governance, which allows investors to reliably assess investment risks and compare practice with these results. Certain features are directly related to the structural elements of the company’s dividend policy, since contributing to the realization of the rights and interests of shareholders, the dividend policy occupies a major place in the corporate governance system of companies.
Key words: dividend policy, dividend, corporate governance, company, profit.