DIVIDEND POLICY DECISIONS: TRENDS, DETERMINANTS, AND FIRM VALUE

Abstract

This paper examines the trends, determinants, and impact of dividend policy decisions on firm value. Dividend policies, which reflect how companies distribute profits to shareholders, have been a critical area of research due to their potential influence on shareholder value, market perceptions, and corporate performance. This study explores the various factors affecting dividend decisions, such as profitability, liquidity, market conditions, and agency costs. Furthermore, it discusses the effects of these policies on firm value, considering the signaling theory and agency theory. Through a comprehensive literature review and data analysis, this paper presents an understanding of how dividend policies evolve in different economic environments and their implications for firm performance.