Theories on Dividend Policy Empirical Research in Joint Stock Companies in Kosovo

Abstract

Global experience makes clear the importance of dividend policy as a promoter in large corporations. Corporations are the backbone of the economy as a whole, they are a key source of jobs and certainly the largest taxpayer of an economy. In recent years it appears that most common way of distributuion in global corporations is cash dividend. In the market we can also face the companies that do not pay cash dividend, and companies that do not pay dividend at all.Nowadays in the market economy, corporates consider the decision to pay dividends as a quite relevant, because in this way is known the remaining cash flow for investment back into the corporation and cash flow distributed to shareholders. A stable dividend policy gives positive signal to shareholders and can be seen as positive corporate performance. Therefore, this paper tends to face the policies which can be applied from companies on dividend distribution and the factors which indicates in following a certain policy.The purpose of this paper is to provide information to stakeholders about the factors which determines dividend policy and its role in today's corporations.