How to Account for Cash Dividends, Share Dividends and Share Splits?

Abstract

The purpose of this study is to explain how to calculate cash dividends, share dividends, and share splits. The data processing method used is a descriptive approach. From the results of the data that has been collected that cash dividends are dividends paid in cash by the company to all shareholders based on the number of shares owned, the cash distributed is stored in the shareholders' bank accounts according to ownership, while share dividends are shares paid to shareholders. shareholders by issuing new shares in the company. The biggest benefit of stock dividends is that shareholders generally don't have to pay taxes on their value. Based on the results of data processing, the share dividend is often used by companies compared to cash dividends. One of the reasons for companies to provide share dividends to shareholders rather than cash dividends is because the company and its shareholders have a better future relationship with investors which will affect investors to provide additional shares.