(2013-03-28T07:01:19Z) Thomas, James; Mohideen, Mohamed; Rajan, A.D.
Finance literature has provided many theories of why firm pay dividend. One suggest that dividend represent firm’s effort to signal there value. Another suggestion is that return in the form of dividend suffers from double taxation as such investors prefer to plough back profits. Finally, the investment opportunity theory play significant role in dividend .This paper study in detail whether firm prefer dividend to retaining profits for better investment opportunity.