Dividend Policy and Firm Value: A Systematic Literature Review of the Past Decade

This study aims to systematically evaluate and review the literature concerning the impact of dividend policy on firm value over the past decade. Utilizing a systematic literature review process, initially, 52 articles were identified, which were subsequently narrowed down to 14 that are most relevant to the scope of this research. This paper critically examines the influential studies in the literature on the impact of dividend policy on firm value. The literature review on dividend policy is analyzed from three perspectives: (a) dividend level, (b) tendency to pay dividends, and (c) dividend smoothing. The findings indicate that the majority of studies show a positive relationship between dividend policy and firm value. Additionally, it was found that most research conducted in Asia reveals a growing interest in evaluating the impact of dividend policies across various emerging market economies. This study contributes to the existing literature by highlighting research gaps in this field and providing a potential agenda for academics and researchers for future research.