Reference no: EM132342098

REVIEW OF LITERATURE ON CORPORATE DIVIDEND POLICY

Dividend is the return that a shareholder obtains from a company, out of its profits, on his or her shareholding. Equity investors receive returns in two forms - dividends and capital gains. The factors that drive dividend policy of a company have been topic of extensive research for a long time now with various, sometimes even conflicting, theories trying to find some pattern in the behaviour of dividend payouts.

Required:

Conduct a literature review on this topic, covering both the development of theories of dividend policy, and the empirical evidence on the determinants of dividend policy.