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The Dividend Puzzle A Progress Report by Steven V. Mann (1989): A Review with Insights from Philippines' New Corporate Tax Law

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  • Madelle Conales

Abstract

This research reviews the progress of the "dividend puzzle" in the finance literature. The article tracks the theoretical evolution of dividend policy and its conceptual and practical differences throughout the years. As such, this paper gives an updated literature discussion on the dividend policies of corporations, its impact to investor preferences, and the linkage to corporate taxes. This literature review implies that the "dividend puzzle" remains unsolved and continues to be an intriguing subject matter as academicians and practitioners alike cannot exactly explain the behavior of investors and corporations as seen in the decades of corporate dividend policies. Furthermore, this article ends with a brief update regarding Philippine's new Corporate Tax Law (CREATE Law) and author's brief perspective on dividend policies.

Suggested Citation

  • Madelle Conales, 2022. "The Dividend Puzzle A Progress Report by Steven V. Mann (1989): A Review with Insights from Philippines' New Corporate Tax Law," Business and Economic Research, Macrothink Institute, vol. 12(2), pages 1-10, December.
    • Handle: RePEc:mth:ber888:v:12:y:2022:i:2:p:1-10
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    References listed on IDEAS

    as
    1. Leonie Bell & Tim Jenkinson, 2002. "New Evidence of the Impact of Dividend Taxation and on the Identity of the Marginal Investor," Journal of Finance, American Finance Association, vol. 57(3), pages 1321-1346, June.
    2. Avner Kalay & Roni Michaely, 2000. "Dividends and Taxes: A Re-Examination," Financial Management, Financial Management Association, vol. 29(2), Summer.
    3. John R. Graham & Alok Kumar, 2006. "Do Dividend Clienteles Exist? Evidence on Dividend Preferences of Retail Investors," Journal of Finance, American Finance Association, vol. 61(3), pages 1305-1336, June.
    4. H. Baker & Gary Powell & E. Veit, 2002. "Revisiting managerial perspectives on dividend policy," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 26(3), pages 267-283, September.
    5. Easterbrook, Frank H, 1984. "Two Agency-Cost Explanations of Dividends," American Economic Review, American Economic Association, vol. 74(4), pages 650-659, September.
    6. Michael J. Barclay & Clifford W. Smith & Ross L. Watts, 1995. "The Determinants Of Corporate Leverage And Dividend Policies," Journal of Applied Corporate Finance, Morgan Stanley, vol. 7(4), pages 4-19, January.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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