Question

Conclusion on dividend behaviour of firms

Answer 1

Here is ur answer,
A dividend policy is a method proposed by the management of the firm towards some of the constant payments to the shareholders out of the profits of the company. It's decisions may be implemented for a short term purpose or may be made for a longer term period.
A dividend policy should be made by the management with certain consideration in mind.It should take into account for the position of the firm and the economic environment and type of industry in which it operates.