Theoretical Models of Dividend Policy

Christian Tanushev

Economic Alternatives, 2016, issue 3, 299-316

Abstract: Why do modern corporations pay dividends and how does dividend policy affect company’s performance remain controversial theoretical questions in both developed and emerging markets. This paper aims to describe concepts and empirical evidence about three of the most widely discussed theories: namely the theory of the dividend payment preference, the theory of irrelevance, and the theory of tax benefits from profit reinvestment. This is a preliminary stage of a study of the dividend policy of publicly traded companies in Bulgaria. By using these theories the future research of data will be based on the achievements of world science and the applied models will be comparable with the results obtained in other countries.

Keywords: dividends; dividend policy; public companies; personal wealth (search for similar items in EconPapers)
JEL-codes: B26 D31 G32 G35 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:nwe:eajour:y:2016:i:3:p:299-316

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