Research Reports

- The purpose of this study is to derive a dividend method that can be used when Mutuals including specialty contractor financial cooperative needs to expand capital stably due to changes in various management situations. - There are not many ways for Mutuals to raise capital other than dividend on surplus, dividend deferral and investments. - The method of raising capital through dividend can be largely divided into dividend on purchase, dividend on capital, revolving investments and dividend deferral.  · Dividend on purchase can be divided into general income dividend, income dividend by product and mixed income dividend.  · Dividend on capital refers to a system in which all or part of the dividend amount is paid out to the members by issuing investment securities instead of cash.  · Revolving investments are the amount of money that is returned to the member after being used for a certain period of time as equity. The use of revolving investments can be interpreted to mean that the capital structure is weak, or capital needs to be raised. Therefore, it is necessary to be careful to utilize the revolving investments system for capital increase. · Dividend deferral is a good alternative as a preemptive response to environmental changes. However, it can not be free from the criticism that it does not share the interests of Mutuals with its members. - Another way of raising capital for Mutuals is the additional investments of the members. In order to obtain effective capital investment, it needs to supplement the market interest rate or its corresponding dividend policy on investments. There is also a need for a policy that can draw the attention of Mutuals members by funding some of their investments and providing funds at low interest rates to the members who need funds. - Indirect dividends such as education and training support for the members and research support projects for industrial development are also part of dividends to members and can be seen as indirect dividends.