Dividend policies: Literature review and effective factors

• Published in: New applied studies in management, economics & accounting economics & accounting, 2022-12, Vol.5 (4), p.52-70
• Main Authors: Mohammad Wasim Zaka, Aburaihan Intezar, Mehdi Meshki Miavaghi
• Format: Article
• Language: English
• Subjects: dividend policy; dividend policy theories; effective factors dividend policy; profit management
• ISSN: 2783-3119
• DOI: 10.22034/nasmea.2022.176148

Dividend policy is one of the most important topics in financial literature; Because dividend represents major cash payments of companies and is considered one of the most important options and decisions for managers. This research has focused on the purpose of division policies and factors affecting it. The method of this research is a review. The results show that paying dividends to common stock owners is one of the ways that the company can directly affect the wealth of shareholders. Therefore, the purpose of implementing such a policy is to determine the role that policy plays in maximizing the shareholders' wealth. Since the dividend policy is influenced by several factors, paying all the profits to the shareholders will not mean maximizing the wealth of the shareholders. And on the other hand, the annual profit of the company is divided into two parts, that is, a part of it is given as dividend and the other part is meant for the accumulated profit account; The board of directors can use the dividend policy as a guide.