Abstract

Dividend decision by corporations’ managers is very sensitive and important as well. There is no doubt that when deciding about income, managers should consider their outcomes. This is why many corporations have a certain purpose in mind while making decisions about dividends. However, it is without question that when managers make dividend decisions they inevitably face constraints such as liquidity problems, tax considerations and so on. Listed corporations in the stock exchange use different advertising instruments for internal and external investment. One of these financial instruments is the dividend. On the one hand, dividends will provide a stable income for shareholders who are able to regulate their life expenses with it, and on the other hand investors and stock buyers will pay attention to corporation’s annual stock dividend news and reports. They will give due attention to the fact that dividend represents corporation’s power, while dividend payment will cause shareholders to have confidence in their yield of capital receipt. Therefore, it is important to understand the factors that affect dividend policies and the managers making decisions about dividend policies in terms of these factors

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