-related literature on dividends explores the implications of differential taxes on dividends and capital gains on stocks’ valuation and … firms’ propensity to pay out cash in the form of dividends. The issues investigated in this literature are of central … perspective, dividends should be minimized. We review the theoretical as well as empirical literature on Signaling …

We survey the literature on payout policy, with a particular emphasis on developments in the last two decades. Of the … in favor of agency considerations. Studies centered on the May 2003 dividend tax cut confirm that differences in the … taxation of dividends and capital gains have only a second-order impact on setting payout policy. None of the three traditional …