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Understanding Residual Dividend Policy by Syed Hassan Abbas Zaidi is a document available to read on EtoBox.
What is Understanding Residual Dividend Policy about?
This chapter discusses the residual dividend policy, which suggests that dividends should be paid from free cash flows remaining after profitable investments. Despite its theoretical foundation, empirical evidence indicates that firms often do not adhere to this policy, instead opting for smoother dividend sequences influenced by past dividends and current earnings. The chapter also explores the implications of agency theory and the relationship between dividend policies and investment opportunities.
- Author
- Syed Hassan Abbas Zaidi
- Language
- EN