Dividend policy decisions

Since dividends play an important role in the overall corporate strategy, financial economists have spent a good part of the last few decades trying to understand the issues that drive dividend policy decisions and the overall corporate value. This chapter discusses the recent development of dividend policy decisions from different perspectives. It reviews the theoretical and empirical issues, including dividend controversy, the theories of dividend policy, and the types and models of dividend policy—to provide a holistic understanding of how a dividend policy framework can work effectively in contemporary emerging and developing economies.