Corporate dividend policy is one of the most challenging issues in the corporate finance field. The decision of dividend policy is considered an important managerial decision as it could have a serious impact on firm performance and firm value. Many researchers have investigated the association between dividend policy and firm performance in different countries and contexts. Different theories and a large body of theoretical and empirical literature have addressed the relationship between dividend policy and firm performance, yet there is no consensus on this issue, and the debate on dividend policy is still open. This study aims to present a comprehensive review of theories and empirical literature concerning the association between corporate dividend policy and its performance for more explanation and understanding of this important topic. This study contributes to corporate dividend policy literature by identifying the potential gaps in previous literature and presenting suggestions for further research.
Cite this paper
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