Economics Working Papers, 2019 (vol. 3), issue 2

Possibilities of identifying distortion of the calculation basis for the payment of dividend on the basis of accounting

Hradecká Marcela

Economics Working Papers 2019, 3(2):5-53 | DOI: 10.32725/ewp.2019.002658  

Financial earning from dividends and profit shares are important income for the owners. From the business corporation perspective is the setting of dividend policy important for keeping the financial stability and solvency of the corporation. The most important indicator of the financial performance of the corporation is the profit reached. Czech accounting rules allow to account some revenue and expenses of on the basis of estimates so that all expenses and revenue are accounted in the period which is related in matter and time. These items are often a means for creative distortion of the economic result with the aim to reach the required level of...