Literature Review: Impact of Dividend Policy on Shareholders Wealth

This literature review delves into the impact of dividend policy on shareholder wealth, drawing from various research articles. It explores the complexities of dividend decisions, particularly in the technology sector, and examines whether paying or not paying dividends significantly affects shareholder value. The review covers studies conducted in developed countries, including the USA, and emerging economies, analyzing the correlation between dividend payout ratios and metrics like lagged price ratio, capital gain yield ratio, and return on equity. Key themes include the puzzling nature of dividend policy, the increasing trend of technology companies contributing to dividend payouts, and the influence of factors like stock repurchases and tax implications. Ultimately, the review aims to provide insights for corporate strategists, investors, and the research community, highlighting the need for further investigation into firm-specific factors and comparative studies across different sectors and economies, with Desklib providing resources for further study.