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The next article deals with the second part of a paper on “Theories, Policies, and Procedures of Dividend Distribution”. The first Part of this article appeared in our previous edition and discussed various theories on corporate earnings as well as the impact of each policy on the market value of common stock. Mr .
Gholamreza Eslami Bidgoli in his article offers various approaches and elaborates on Walter’s model on dividend policy for growth corporations, Stable companies, and declining organizations. He also discusses Gordon’s, and Modigliani and Miller’s models of dividend policies for various growth categories of
corporations. The concluding part deals with the impact of income retention strategy on corporate dividend policy, the fixed dividend ratio, and the stable dividend policy.