Abstract

Since decades, several theories have evolved on dividend decisions and their potential impact of firms overall wealth and performance that led to diverse results. These researches led to formulation of various financial theories and models that became applicable to the corporate world. Despite several research, the impact of dividend decisions on firm’s share price and overall shareholders’ wealth remains inconclusive. This paper aims towards establishing a relationship between of the impact of dividend policy decisions on firm’s value taking a sample of 30 companies listed on the Qatar stock exchange (QE) which have been paying dividends for at least for five consecutive years. This study covered the time period from 2013-2017. Data have been taken on annual basis. Total number of observations in this study were 180. Data have been taken on annual basis. This study applied multiple regressions using E-Views or Minitab for the year 2017. Regression models have been developed to find the association between dividend policy and earnings per share (EPS), return on equity (ROE), and share price (SP).

Subjects: Corporate Finance, Financial Markets, Dividend Policy, Shareholder Wealth.

Keywords: dividend policy; shareholders wealth; firm performance; returns on equity; share price earning per share.

JEL Classification: G3, G32, G35, F65, D53.

Cite as: Ar. Banerjee. (2018). Dividend Policy as a Corporate Communication and its Impact on Firm Value Evidences from listed companies in Qatar Stock Exchange. Financial Markets, Institutions and Risks, 2(4), 29-38. DOI: http://doi.org/10.21272/fmir.2(4).29-38.2018

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