Impact of Capital Structure and Dividend Policy on Shareholders’ Value

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Title: Impact of Capital Structure and Dividend Policy on Shareholders’ Value 1. Introduction
Dividend policy has been an issue of interest in financial literature as many theories have been established to estimate weather this effects the overall value of the firm.Dividend policy connotes to the payout policy, which managers pursue in deciding the size and pattern of cash distribution to shareholders over time. Managements’ primary goal is shareholders’ wealth maximization, which translates into maximizing the value of the company as measured by the price of the company’s common stock. This goal can be achieved by giving the shareholders a “fair” payment on their investments. However, the impact of firm’s dividend policy on …show more content…

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