Chap16 Dividends

1Law of Double Taxation Conventions2014/4/171中央财经大学张京萍Chap.3 Allocation rules󰂄3. 1 income from immovable property󰂄3. 2 business profits󰂄3. 3 international transport󰂄3. 4 dividends󰂄3. 5 interest󰂄3. 6 royalties󰂄3. 7 capital gains2014/4/172󰂄3. 8 independent personal service󰂄3. 9 income from employment󰂄3. 10 directors‘ fee󰂄3. 11 artistes and sportsmen󰂄3. 12 pensions󰂄3. 13 government service󰂄3. 14 students󰂄3. 15 other income󰂄3. 16 capitalChap.3 Allocation rulesStructure of a treaty󰂄Personal and substantive scope󰂄Allocation RulesTaxation of Income󰂄Art. 6 income from immovable property󰂄Art. 7 business profits󰂄Art. 8 international transport󰂄Art. 10 dividends󰂄Art. 11 interest󰂄Art. 12 royaltiesArt13capitalgains2014/4/173󰂄Method Article󰂉Exemption method󰂉Credit method󰂄Art. 13 capital gains󰂄Art. 14 independent personal service󰂄Art. 15 income from employment󰂄Art. 16 directors‘ fee󰂄Art. 17 artistes and sportsmen󰂄Art. 18 pensions󰂄Art. 19 government service󰂄Art. 21 other incomeTaxation of Capital󰂄Art. 22 capitalBusiness Profits2014/4/174Art. 7 OECD MCArt.7 Business Profits󰂄Profits of an enterprise󰂄taxable onlyin the state of residence󰂄Unlessthere is a PE in the other Contracting State，may be taxedin the other contracting state󰂄profits taxable in residence and source state󰂉Art. 23 A or B OECD MC –eliminate double taxation2014/4/175󰂉Regularly exempted in the State of Residence󰂄PE according to Art 5󰂄income which is attributable to the PE 󰂄Art. 14 OECD MC (independent professional services) was deleted in 2000󰂄Subsidiarity of Art. 7 OECD MC: Art. 7 (4)󰂄Corresponding to:Art 10(4), Art 11(4), Art 12(3) and Art 21(2)Art.7 Business Profits󰂃Applying Art. 7 correctly, requires two questions to be answered:󰂃Question 1: Does a PE exist? 2014/4/176󰂃Question 2: How much of the profit of the whole enterpries may be attributed to the PE?

dividends辨析

Dividends，这是个在金融领域常常被提到的东西。一听到这个词，就感觉像是从大蛋糕里分给大家的一块小点心。

想象一下，一家公司就像是一棵大树。这棵大树不断地生长，吸收阳光雨露，它的树干越来越粗，枝叶越来越茂盛。而dividends呢，就像是这棵大树结出的果实。公司通过各种经营活动，赚了钱，就像大树在成长过程中积累了养分。这些赚来的钱，一部分就可以拿出来分给股东，这就是dividends。

有些公司的dividends特别稳定，就像那种每年都按时结果的果树。股东们守着这样的公司，心里可踏实了。就好比你种了一棵苹果树，每年秋天你都知道能收到一筐苹果。你可以拿着这些苹果去卖钱，也可以自己吃，这多幸福呀。

但有些公司呢，dividends就没那么稳定了。这就像一棵还在成长中的小树，它可能今年结了几个果子，明年因为环境不好或者自己还没长好，就结不出果子了。股东们守着这样的公司，就有点提心吊胆的。说不定今年拿到了一笔dividends，明年就没有了。

从投资者的角度看，dividends就像是一个额外的小惊喜。假如你买了一家公司的股票，你本来是看好这个公司未来的发展，想着等股票涨了再卖掉赚钱。结果呢，这个公司还时不时地给你发点dividends，就像你在路上走着走着，突然捡到了几块钱一样。

可是dividends也不是越多就一定越好。有的公司为了吸引投资者，把大部分的钱都拿来发dividends了，就像那棵大树，把自己的养分都用来结果子了，结果树干和枝叶得不到足够的营养，变得越来越脆弱。这样的公司可能就没有足够的资金去扩大生产、研发新产品，未来的发展就会受到限制。

对于一些保守型的投资者来说，他们可能就特别看重dividends。他们就像那些喜欢稳定生活的人，不追求大富大贵，只求每年都能有点稳定的收入。这些投资者可能就会选择那些dividends稳定、经营也比较稳健的公司。

而对于一些激进型的投资者来说，他们可能更关注公司的成长潜力。dividends对他们来说就没那么重要了。他们就像那些冒险的猎人，更在意的是这只猎物以后能长多大，而不是现在能从它身上割下多少肉。

Lecture 3 continued: Dividend policy

READING: BREALEY MYERS AND ALLEN CHAPTER 16

Copeland, Weston and Shastri Chapter 16

Dividend Policy, Growth and the Valuation of Shares – Miller and

Modigliani, Journal of Business, 1961

2

Learning outcomes

 Understand why firms issue dividends

 Understand how dividend policy might affect the value of a firm

 Understand how dividend policy is set by firms

3

Dividend Policy

Companies pay out cash to their shareholders in two ways: They can

pay a dividend, or they can buy back some of the outstanding shares.

Dividends remain the principal way that corporations return cash to

their shareholders. However, the proportion of companies paying a

dividend has declined. In the US, 64% of companies paid a dividend in

1980. The proportion declined to 41% by 2005. One way to think

Chap 1

1.Mostly the objective of a business is not to make a profit.错

2. A corporation is a business that is legally separate and distinct from its owners.对

3. Accounting is a service that provides many different users with financial

information to make economic decisions.对

4. Primary users of accounting information are accountants.错

5. "Managerial accounting is primarily concerned with the recording and reporting of

economic data and activities of an entity for use by owners, creditors, governmental

agencies, and the public." 错

6. The financial statements of a proprietorship should include the owner's personal

assets and liabilities.错

7. The unit of measurement concept requires that economic data be recorded in a

common unit of measurement 对

8. "If a building is appraised for $90,000, offered for sale at $95,000, and the buyer