The relationship between behavioural finance and dividend policy: A literature review

Hasan, Fakhrul and Islam, Mohammad Raijul (2022) The relationship between behavioural finance and dividend policy: A literature review. Academy of Accounting and Financial Studies Journal, 26 (5). pp. 1-11. ISSN 1096-3685

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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
Uncontrolled Keywords: Behavioral Finance, Prospect Theory, Self-control Bias, Regret Aversion
Subjects: N400 Accounting
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: Rachel Branson
Date Deposited: 08 Feb 2023 14:55
Last Modified: 08 Feb 2023 14:55

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