Dividend Policy: as Review and Research Agenda Cover Image

Dividend Policy: as Review and Research Agenda
Dividend Policy: as Review and Research Agenda

Author(s): Satish K. Mittal, Seema Verma
Subject(s): Supranational / Global Economy, Business Economy / Management, Economic policy
Published by: Reprograph
Keywords: dividend policy; signaling effect; market efficiency; firm value; agency cost; dividend determinants; macroeconomic factors; dividend payouts;

Summary/Abstract: This paper reviews the diverse literature and summarizes the state of knowledge on dividend policy related issues. It integrates the existing research in the field. A systematic analysis of extant dividend policy literature is conducted to order them into domains that have implications for managers and researchers. The paper is structured into three such domains: (A) Dividend payout announcement as signaling effect: in long run (future earnings performance of firm or structural change); and in short run (shareholders’ wealth); (B) Tax effect, preferences and clienteles effect; and (C) Agency cost effect, dividend determinants, firm’s characteristics, investors and managers behavior. This paper contributes by increasing the clarity of dividend policy related issues classification, reflecting on the implications of multi-polar effects of dividend policy. An effort is made to give answers to researchers/managers’ related problems and advancing future agenda for scholars in this research community.

  • Issue Year: V/2013
  • Issue No: 09
  • Page Range: 14-16
  • Page Count: 3
  • Language: English