Purpose: The purpose of the study is to analyze motivation behind payment of cash dividend by the firms in India in … presence of tax provision that discourages payment of dividend by imposing tax on firms at the time of distribution ….Design/methodology/approach First, consistent with Jensen's (1986) view, the paper presents a theoretical model that shows - dividend payout addresses …

The dividend payout problem in literature has largely been misspecified. The roles of dividends as signals, agency cost … reducers, fixed income providers or even the invariance of dividend payouts are all phenomenon that, based on market conditions … this study, I discuss few problems with prevalent approaches towards solving dividend puzzle in academia, provide …