Determinants of Dividend Policy in Kuwait Stock Exchange

Abstract

Dividends are defined as payments made by corporations to its shareholder members (Baker and Powell, 2000). Dividend payments and policies are one of the most widely covered topics in finance due to their importance to both investors and companies. What affect dividend policy? And how it affects it? Are two big questions asked by many researchers? In this study we chose Kuwait stock exchange to study what affects the dividend policies of the companies listed in it and how they affect it. Researchers studied many variable that affect dividend policy in many countries from different sectors such as company size, profitability , growth , debt ratio , corporate governance, ownership structure and many other variables . In this study, we chose three variables only and we studied their effect on dividend policy and how they affect it. The study consisted from 5 sections the second one is literature reviews and previous studies, the third section is the study methodology, the forth section is the empirical study and fifth section and the last one is the conclusion and recommendation.