Introduction of the Dividend Decision Model as a solution for the dividend puzzle.

Key finding of the study

The major findings of this study are identifying some of the more consistently essential determinants of dividend policy while proposing a holistic model to address the prevailing dividend dilemma.

Authors   

Dewasiri N.J., Sabaragamuwa University of Sri Lanka

Baker H.K., American University, USA

Banda Y.K.W., University of Sri Jayewardenepura

Rathnasiri M.S.H., Sabaragamuwa University of Sri Lanka

Summary of the study

This study provides an overview of the explanations and factors affecting dividend policy. This study employs a systematic literature review approach to review a large sample of studies related to the dividend puzzle. There is no consensus exists on an optimal dividend to resolve the dividend puzzle, and the authors propose a model to deal with the same. When examining dividend policy, researchers should consider the firm, market, behavior, and other determinants. When making significant dividend or stock decisions, managers and shareholders should also contemplate the factors, interactions, inadequacies, and consequences. Future researchers should strive to take a more comprehensive view when resolving the dividend puzzle. This study provides a current and complete picture of dividend policy's available theories and empirical determinants. Its significant contribution is identifying some of the more consistently essential determinants of dividend policy while proposing a holistic model to address the prevailing dividend dilemma.

Published in

Book titled “Exploring the Latest Trends in Management Literature” by Emerald Publishing

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