Introduction
At the heart of every successful corporative is the financing decisions that it adopts to ensure its financial stability. While companies are aiming at maximizing profits, the level of financial risk that they face ought to be minimized. This is usually achieved by making sure that the capital structure of the firm is optimal. In this regard, the dividend policies and decisions of a firm constitute the integral part of firm’s strategic financing decisions as it determines the division of earnings between shareholders and re-investment into the firm. The managers therefore have to formulate an optimal dividend policy that ...
