LEGAL FOUNDATIONS OF DIVIDEND POLICY: EVIDENCE FROM DEVELOPED AND DEVELOPING COUNTRIES
DOI:
https://doi.org/10.5281/zenodo.18334047Keywords:
dividend policy, developed and developing countries, Common Law and Civil Law systems, investor protection, agency problem, outcome model, substitution model, corporate governance, dividend payments, legal regime, financial markets.Abstract
This article examines the application of dividend policy in developed and developing countries. Based on an
analysis of numerous academic studies published by Elsevier and JSTOR, covering countries in Asia and Europe, the
findings indicate that the Common Law system predominates in developed countries, where investor rights are protected
at a high level. In contrast, developing countries predominantly apply the Civil Law system, in which the level of investor
protection is relatively low. The results show that the outcome model is mainly applied in dividend policy in developed
countries, whereas the substitution model is predominantly used in developing countries
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