The Effects of Information asymmetry on Dividend pay-out policy: An empirical review paper

Abstract

This study examined the effect of information asymmetric on dividend pay-out policy. Emphasizing more on the review of empirical studies. The work empirically reviewed studiescarried out and published from 2008 to 2024 concerning the effect of information asymmetry (IA) as claimed by agency and signaling theory. An integrative assessment method was used, applying a critical method to review the literature. It measure, analysis, and critique on the related literature review on information asymmetry and dividend pay-out policy. Results of the studies revealed the significant of the signaling theory indicating a positive or negative relationship. The findings, from the studies further, indicated how best the relationship between information asymmetry (IA) and payment of dividend considerably reduce asymmetric information in capital markets and other economic dealings involving companies and shareholders.