Dividend Policy and Its Relationship to Investment and Financial Policies The Case of Kuwaiti Market

Abstract

This paper presents additional empirical evidence with regard to the relationship between dividend, investment and financing decisions within the Kuwait market. Based upon the results of a questionnaire survey, this study found that decision makers do not adopt a residual dividend policy as suggested by Miller and Modigliani (1961). The study also found no evidence of dependency between dividend and investment decisions. In addition no evidence was found to support the notion that external financing was determined on a residual basis as suggested by Partington (1985).