Dividend Payout: Policies and Theories
Chapter from the book:
Şahin,
A.
(ed.)
2023.
Academic Research and Evaluations in Social Sciences - V.
Synopsis
The main decision areas of financial management include issues regarding financing, investment and dividend distribution. Today, maximizing the firm value, which is the main purpose of firm, taking into account both risk and time factors, is possible by making decisions that will maximize the wealth of the shareholders. It is extremely important for firms to adopt a dividend distribution policy that will not hinder growth but also meet shareholders' expectations. Although there are different theories about the effect of dividend distribution on firm value, the two main theories on the subject are the view that dividend distribution, put forward by Modigliani and Miller, does not affect firm value, and the view that dividend distribution, advocated by Lintner and Gordon, has an impact on firm value However, due to the ever-changing dynamics of the market and economy, it is not possible to talk about an ideal dividend distribution policy for every firm.
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Copyright (c) 2023 Orhan Ecemiş; Ali Şahin; Aslı Özpolat, Ferda Nakıpoğlu Özsoy, Bengü Kayapalı Aslan, Şahin Nas, Ömer Demir, Sacit Sarı, Elif Koçak, Mehmet Kaya, Muhammed Çelik, Ayla Yazıcı, Başak Gül Akar, Eda Bozkurt, Özlem Demir, Fazilet Nohut, Özlem Balaban, Ünal Arslan, Metin Kılıç, Şahin Daştan, Mehmet Göl, Serhat Ata, Ali Özer, Nevin Özer, Emine Kaya, Ömer Kaya, Paşa Gültaş, Berna Ağbulut, Mehtab Çelik, Ersin Korkmaz, Aslı Uğur Aydın Taştekin, Ayşegül Güdül, Yunus Alhan