Studies on the Relevance of Dividends
The discussion about whether the dividend decision is not transmitted information to the market remains one of the most controversial issues in corporate finance. In this regard, empirical research in recent years not only inconclusive but are clearly contradictory. This brings us to two different doctrinal positions: the hypothesis of neutrality of dividends and the hypothesis of their relevance (Asquith and Mullins 1986, p. 61).
There are many theoretical models that explain the relationship between dividend policy and share value from the information in the market situation, and a wide range of solutions that make the issue at hand in a puzzle, in a puzzle whose pieces do not fit just perfectly. One of the theoretical arguments to rebuild the puzzle is the relation to its information content and the possibility of dividend policy to be taken into account by investors when deciding on hold stock or buy.