National Research Nuclear University “MEPhI” (Moscow Engineering Physics Institute), Moscow, Russia:

V. G. Kogdenko, Head of a Chair of Financial Management, e-mail: VGKogdenko@mephi.ru
A. V. Putilov, Professor, Dean of a Faculty of Management and Economics of High Technologies
A. G. Vorobev, Professor, Head of a Chair of Economics

The objective of this article is the payout policy analysis, including its dividend and share buyback policy. The aim of the research is an approbation of analytical procedures for assessing the impact of the payout policy on the company's financial condition, investment activity, fundamental value and company's capitalization. It presents the method of the payout policy analysis, which includes four stages. This article presents the second, third and fourth stages of the method. The calculations of analytical indicators are based on the annual reports data of the consolidated statements of MMC “Norilsk Nickel”, using the company's capitalization data. The second phase is focused on evaluation of two key consequences of the payout policy: its impact on liquidity and solvency of the company on one hand, and investment activity on the other. There are substantiated the analytical procedures of assessment the payout policy impact on net asset value, own working capital, and company's net debt. In the third stage, the analysis methods evaluate the payout policy of its impact on the fundamental value drivers - the weighted average cost of capital, sustainable growth and return on invested capital. The fourth stage analyzes the impact of the payout policy on the company's market capitalization and substantiates the conclusion on how does market react on increase or decrease in dividends per share, an increase or decrease in retained earnings of the company, and what is the capital and the total return on investment in the company's shares.

1. Zvi Bodie, Robert C. Merton. Finansy (Finance). Translated from English. Moscow : Publishing House “Williams”, 2004. pp. 310–321.
2. Steven M. Bragg. Nastolnaya kniga finansovogo direktora (The New CFO Financial Leadership Manual). Translated from English. Sixth edition. Moscow : Alpina Publishers, 2015. pp. 208, 209.
3. Richard A. Brealey, Stewart Myers. Printsipy korporativnykh finansov (Principles of Corporate Finance). Translated from English by N. Baryshnikova. Moscow : LLC “Olimp-Business”, 2007. pp. 405–426.
4. Richard Pike, Bill Neale. Korporativnye finansy i investirovanie (Corporate finance and Investment: Decisions and Strategies). Forth edition. Translated from English. Saint Petersburg : Piter, 2006. pp. 607–628.
5. Teplova T. V. Vliyanie dividendnykh vyplat na rynochnuyu otsenku rossiyskikh kompaniy: empiricheskoe issledovanie metodom sobytiynogo analiza na rossiyskikh i zarubezhnykh torgovykh ploshchadkakh (Influence of dividend payout on market-based valuation of Russian companies: empirical study by event analysis on Russian and foreign trading platforms). Audit i finansovyy analiz = Audit and financial analysis. 2008. No. 2. pp. 9–13.
6. Barilenko V. I., Efimova O. V., Borodina E. I., Berdnikov V. V. Aktualnye problemy analiticheskogo obespecheniya upravlencheskikh resheniy (Urgent problems of analytical provision of managerial decisions). Moscow : Financial University under the Government of Russian Federation, 2010. pp. 53–68.
7. Bernstayn L. A. Analiz finansovoy otchetnosti: teoriya, praktika i interpretatsiya (Analysis of financial reporting: theory, practice and interpretation). Translated from English. Moscow : Finansy i statistika, 2002. pp. 192–203.
8. Ivashkovskaya I. V., Grigoreva S. A., Kokoreva M. S., Stepanova A. N. et al. Empiricheskiy analiz rossiyskikh kompaniy (korporativnye finansovye resheniya na razvivayushchikhsya rynkakh kapitala) : monografiya (Empirical analysis of Russian companies (corporate financial decisions on developing capital markets) : monograph). Under the scientific editorship of I. V. Ivashkovskaya. Moscow : INFRA-M, 2012. pp. 210–216.
9. Kovalev V. V. Finansovyy analiz. Metody i protsedury : monografiya (Financial analysis. Methods and procedures : monograph). Moscow : Finansy i statistika, 2005. pp. 453–520.
10. Nick Antill, Kenneth Lee. Otsenka kompaniy: analiz i prognozirovanie s ispolzovaniem otchetnosti po MSFO (Company Valuation Under IFRS: Interpreting and Forecasting Accounts Using International Financial Reporting Standards). Translated from English. Moscow : Alpina Publisher, 2013. pp. 25–35.
11. Warren E. Buffett. Esse ob investitsiyakh, korporativnykh finansakh i upravlenii kompaniyami (The Essays of Warren Buffett: Lessons for Corporate America). Moscow : Alpina Business Books, 2009. pp. 182–192.
12. Aswath Damodaran. Investitsionnaya otsenka: instrumenty i metody otsenki lyubykh aktivov (Investment Valuation: Tools and Techniques for Determining the Value of any Asset). Translated from English. Forth edition. Moscow : Alpina Business Books, 2007. pp. 406–430.
13. Benjamin Graham, Jason Zweig. Razumnyy investor (The Intelligent Investor). Translated from English. Moscow : Publishing House “Williams”, 2009. pp. 533–547.
14. Tom Copeland, Tim Koller, Jack Murrin. Stoimost kompaniy: otsenka i upravlenie (Valuation: The Value of Companies: Measuring & Managing). Moscow : JSC “Olimp-Business”, 2005. pp. 198–202.
15. Jeremy Siegel. Dolgosrochnye investitsii v aktsii. Strategii s vysokim dokhodom i nadezhnostyu (Stocks for the Long Run: The Definitive Guide to Financial Market Returns and Long-Term Investment Strategies). Forth edition. Saint Petersburg : Piter, 2010. pp. 157–179.
16. Robert G. Hagstrom. Uorren Baffet. Kak 5 dollarov prevratit v 50 milliardov. Prostye pravila velikogo investora (The Warren Buffett: Way). Translated by N. Yatsuk. Moscow : Mann, Ivanov and Ferber; Eksmo, 2014. pp. 280–292.
17. Eric Floyd, Nan Li, Douglas J. Skinner. Payout policy through the financial crisis: The growth of repurchases and the resilience of dividends. Journal of Financial Economics. 2015. Vol. 118, No. 2, November. pp. 299–316.
18. Guoying Deng, Shaoyang Zhao, Nanmiao Zhu. Does Refinancing Incentive Affect Cash Dividends Policy? Evidence from the Semimandatory Dividend Policy in China. Emerging Markets Finance & Trade. 2015. Vol. 51. pp. 1099–1116.
19. Rossiyskiy proizvoditel, globalnyy igrok : godovoy otchet (Russian manufacturer, global player : annual report). JSC “Norilsk Nickel” MMC. 2012. Available at : http://www.nornik.ru/_upload/GO_s_priloz.pdf (in Russian)
20. Kogdenko V. G., Putilov A. G., Vorobev A. G. Analiticheskaya osnova i metodika obosnovaniya fundamentalnoy stoimosti kompanii (na primere gornometallurgicheskogo kombinata “Norilskiy nikel”) (Analytical framework and method of substantiation of company's fundamental value (on the example of MMC “Norilsk Niсkel”)). Tsvetnye Metally = Non-ferrous metals. 2015. No. 3. pp. 51–57.