The signalling effect – changes in the current dividend policy and the future results of the companies – theory and practice
The signalling effect – changes in the current dividend policy and the future results of the companies – theory and practice

Summary/Abstract: Purpose – The purpose of this article is to present the signalling effect, in particular, to introduce its theoretical foundations and to review major empirical studies on this effect. Design/methodology/approach – The literature review enabling to identify and discuss the main theoretical and empirical works regarding the signalling effect. Findings – The conducted study of the literature on the signalling effect leads to a conclusion that although researchers generally agree that dividend payments give some information, there is no consensus on what they really signal. Originality/value – Dividend theories described in the Polish literature are most often discussed in a collective way. By focusing on only one dividend policy aspect, i.e. the signalling effect, the article offers a more in-depth and comprehensive view of the presented issue.

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