What do we know about the dividend puzzle? – A literature survey
International Journal of Managerial Finance
ISSN: 1743-9132
Article publication date: 13 March 2019
Issue publication date: 20 March 2019
Abstract
Purpose
The purpose of this paper is to shed light on the ongoing debate of dividend policy, which is considered one of the most controversial topics in corporate finance literature.
Design/methodology/approach
The paper provides a survey of literature; it, first, outlines the main theoretical arguments of dividend policy and then critically discusses the most important and influential previous empirical studies in the dividend literature.
Findings
The analysis of literature review detects that no general consensus has yet been reached after many decades of investigation, despite extensive debate and countless research. Consequently, the main motivation for paying dividends is still unsolved and thus remains as a puzzle. In addition, there is no doubt that carrying the dividend debate into the context of emerging markets attaches more pieces to this puzzle.
Originality/value
This paper offers an updated and more comprehensive survey of literature by examining the relationship between theory and practice from both developed and emerging markets.
Keywords
Citation
Al-Najjar, B. and Kilincarslan, E. (2019), "What do we know about the dividend puzzle? – A literature survey", International Journal of Managerial Finance, Vol. 15 No. 2, pp. 205-235. https://doi.org/10.1108/IJMF-03-2018-0090
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited