Life Cycle Theory of Dividend: A Review Literature

Hasnawati, Sri (2021) Life Cycle Theory of Dividend: A Review Literature. In: ICEBE 2020, 1st October 2020, Tangerang, Indonesia.

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The purpose of the paper is to examine the relationship between dividend policy of the company and the life cycle theory. According to the life cycle theory, the company will pay dividend in the third stage, namely the maturity stage. In the early stage, the company has investment opportunities with high profit potential so that it requires large funds. As a result, dividend payments will be delayed. However, dividend payments remain a matter of debate today because dividend payments will be associated with company value. The theory of dividend policy states that paying dividends will increase firm value, but several research results show that dividend payments are not related to firm value.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: dividend life cycle theory
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: EAI Editor IV
Date Deposited: 17 May 2021 08:14
Last Modified: 17 May 2021 08:14

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