THE RELATIONSHIP BETWEEN BEHAVIORAL FINANCE AND DIVIDEND POLICY: A LITERATURE REVIEW

Hasan, Fakhrul and Islam, Mohammad Raijul (2022) THE RELATIONSHIP BETWEEN BEHAVIORAL FINANCE AND DIVIDEND POLICY: A LITERATURE REVIEW. Academy of Accounting and Financial Studies Journal, 26 (5). pp. 1-11. ISSN 1096-3685

Text Behavioural Finance and Dividend Policy.docx - Accepted Version Download (57kB)

Abstract

The main objective of this paper is to provide a meaningful aspect of the contemporary issues of dividend policy from the point of behavioral finance perspective. As dividend policy can be considered as one of controversial topics of corporate finance, and thus it is still considered a puzzle for the corporate finance researchers, therefore, they recently endeavor to exploit the behavioral finance perspectives to solve the dividend policy puzzle. The paper gives an overall outline of the dividend policy literature from the behavioral finance perspective. This paper provides a survey of literature. It outlines the dividend policy’s primary theoretical arguments from the behavioral finance perspectives along with behavioral elements and calendar anomalies having effects on dividend policy. With the analysis of the literature, this paper finds no concrete evidence as to why firms pay dividend even though behavioral finance’s literature perspectives have been thoroughly analyzed. The paper showcases an updated and comprehensive literature with the thorough examination of the relationship between behavioral finance and dividend policy.

Item Type:	Article
Additional Information and Comments:	This is the author's version of an article that was accepted for publication in the Academy of Accounting and Financial Studies Journal.
Keywords:	Behavioral Finance, Prospect Theory, Self-control Bias, Regret Aversion.
Faculty / Department:	Faculty of Business, Law and Criminology > Liverpool Hope Business School
Depositing User:	Fakhrul Hasan
Date Deposited:	02 Aug 2022 08:19
Last Modified:	02 Aug 2022 08:19
URI:	https://hira.hope.ac.uk/id/eprint/3580

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