THE DYNAMICS OF DIVIDEND POLICY AND ITS IMPACT ON STOCK VALUE: A CRITICAL ANALYSIS

This article provides a detailed analysis of dividend policy and its impact on stock value, a key aspect of financial management. The methodology used in this study is a comprehensive theoretical review and critical analysis of existing literature. It examines and synthesizes key research and theories, including signaling theory and relevant empirical studies exploring the relationship between consistent dividend policies and the market value of stocks. The paper discusses how dividend decisions transcend their role as a mere distribution of profits, becoming a strategic tool that affects market perception and, consequently, the market value of stocks. This article challenges Modigliani and Miller's dividend irrelevance theory, arguing that in contemporary financial markets, strategic dividend management is crucial for corporate valuation. Through this methodological approach, the paper aims to provide a comprehensive and critical understanding of the importance of dividend policy in the current financial context