­­A Systematic Literature Review of Factors Influencing the Dividend Policy

Abstract

Dividend is the sum of money which is paid regularly out of profits to the shareholders of company. There are various factors which influence the decision of dividend payment. The main purpose of the study is to investigate and analyze the factors influencing the Dividend Policy by reviewing the variables determining the dividend policy based on summarized theoretical and empirical evidences available in previous studies. It is based on previous studies from Scopus and Web of Science database covering the entire time span available in the databases from 1982 to 2022. This review has been conferred in a systematic way which include different variables namely profitability, lagged dividend, size, firm Age, taxation, liquidity, business risk, growth opportunities, corporate social responsibility (CSR), leverage, free cash flow and net working capital etc. On basis of majority of previous studies, the present study concludes significant positive relation between profitability, lagged dividend, firm size, liquidity, corporate tax, firm age, CSR and net working capital. And on other hand dividend policy have significant Negative association with Investment opportunities, Free Cash Flow, Business Risk and Leverage. The main implication of the study is that it will provide base for further research and also gives information regarding literature gap.