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Dividend Policy: The Issues

D.E. Allen (Dept. of Economics and Finance, Curtin University of Technology and Dept. of Accounting and Finance, The University of Western Australia)
H.Y. Izan (Dept. of Economics and Finance, Curtin University of Technology and Dept. of Accounting and Finance, The University of Western Australia)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 January 1992

Abstract

The determinants of dividend policy are a continuing puzzle, as noted by Black (1976). In this paper we review the major issues in dividend policy and relate them to some of the themes explored in companion papers in this volume. The paper is divided into five sections. Section 2 surveys the literature on the information signalling properties of dividends. Section 3 discusses some tax issues related to dividend policy and section 4 draws on some agency costs explanations for dividend payments. The conclusion draws together the arguments and highlights some of the unresolved issues.

Citation

Allen, D.E. and Izan, H.Y. (1992), "Dividend Policy: The Issues", Managerial Finance, Vol. 18 No. 1, pp. 1-8. https://doi.org/10.1108/eb018439

Publisher

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MCB UP Ltd

Copyright © 1992, MCB UP Limited