Dividend Policy: Theory and Practice

Dividend Policy provides a comprehensive study of dividend policy. It explores the puzzle presented by dividends: irrational and subject to fashion, yet popular and desirable, they remain a priority among managers, even while perceived as largely symbolic.

After exploring the history of dividend payments, from the emergence of the modern corporation to current perspectives, it traces the evolution of academic models on dividend policy. Here the authors review models of symmetric and asymmetric information before analyzing academia's accomplishments in solving the dividend puzzle. Related subjects, such as valuation and wealth distribution, round out the authors' presentation about new ways to think about one of the most intriguing subjects in financial economics.

The book is recommended for professors and students in departments of finance and business, corporate finance staff, and financial regulators.

The Evolution of the Stock Market and the Modern Corporation in the Netherlands and the United Kingdom; The Evolution of the Stock Market and the Modern Corporation in the USA; 200 Years of Dividend Practices; Dividend Reinvestment Plans; Preferred Stock and Dividends; Early Academic Thinking and Research; Models of Symmetric Information and Empirical Research; Models of Asymmetric Information and Empirical Research; Determinants of Dividend Policies; What Academic Research Proves and What It Does Not Prove; New Ways of Thinking About Dividends and Dividend Policy: Unconventional Explanations; Regulated Industries; What If We Do Not Pay Dividends?; Other Methods of Distribution; Future Research and Thinking