Family firms’ dividend policies: Evidence from a Japanese tax reform

Importance of Liquidity Indicators in Intervening the Dividend Policy

“…Consideration for investors is the rate of return on the funds they invest in the form of shares in the form of dividends or in the form of capital gains (L. Liu & Shu, 2022). The authority to control dividend policy is one of the powers delegated by shareholders to the board of directors (Akindayomi & Amin, 2022;Lee, 2022) Companies that decide to distribute their profits in the form of dividends will make available company funds limited, but on the other hand the distribution of dividends can give a positive signal for companies in the capital market because the company is considered capable of providing returns to shareholders in the form of dividends (Cao et al, 2022;Kasahara & Orihara, 2022). Shareholders or investors certainly want the company's profit and profit per share to be stable or even increase every year (Barros et al, 2021(Barros et al, , 2022Grassetti et al, 2022).…”