Dividend Policy in Developed and Developing Countries: A literature Review

Husaini Husaini, Said Musnadi, Faisal Faisal


This article aims to know the application of dividend policy in developing and developed countries. After reviewed 29 articles that located in ASIA and Europe and published by Elsevier and J-Stor publisher found the system of Common law is more dominant used in developed countries where the protection of the investors in stock market tends to be higher. Meanwhile, the system of Civil law tends to be applied by developing countries where the protection of the investors in the share market is relative low. Based the research results in some developed countries found that the application of the outcomes model related to dividend policy, although there exist different outcomes related to tax on dividends and profitability of the firms. While in developing countries, dividend policy is relatively lower that depends on the management of firms, and indicated the application of substitution model related to dividend policy.

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