Dividend policy has been one of the areas of corporate finance to be analyzed with a rigorous model, and it has since been one of the most thoroughly researched issues in modern finance. There are a number of theories of dividend behavior, and empirical studies provide little evidence for one over the other. Also the conceptions concerning corporate dividend theories are different. The financial manager must take careful decisions on how the profit should be distributed among shareholders. It is very important and crucial part of the business concern, because these decisions are directly related with the value of the business concern and shareholder’s wealth. Like financing decision and investment decision, dividend decision is also a major part of the financial manager. When the business concerns decide dividend policy, they have to consider certain factors affecting retained earnings and the nature of shareholder of the business concern. The main part of the discussion is related to the evaluation of financial research, because at all times researchers have tried to solve the dividend factors affecting dividend policy, the dividend Process and insights.
Business Cycles, Dividend, Interim Dividend,Inflation, Stability.
