Dividend Decisions and Financial Performance of Listed Firms: Evidence from Developing Countries

Abstract

Many listed firms in developing countries are not performing well. There are other factors that may affect their performance; however, the study reviewed the past studies on the impact of dividend decisions on financial performance of listed firms: Evidence from developing countries. While the results of some past studies on the impact of dividend decisions on listed firms in developing countries revealed that the dividend decisions had a positive significant impact on financial performance, others showed that dividend decisions had a negative significant impact on financial performance of listed firms in developing countries. Thus, the study recommends that the management of listed firms in developing countries should continue to pay dividends to their investors on regular basis with a reasonable amount whenever they make reasonable profits in order to retain the existing investors and at the same time attract new ones and by so doing the share price of their firms will appreciate in value.