A few investigations have been conducted on dividend policy by various researchers over different periods. The relationship between stock volatility and dividend yield is very remarkable when compared to different factors. (Asghar, Shah, Hamid and Suleman, 2011) Dividend strategy has a positive impact on the cost of shares (Murhadi, 2008). Banks that pay dividends have a more fluid market for their shares, and measures of a stock's liquidity are strongly related to its likelihood of paying dividends (Igan, Paula, & Pinheiro, 2010). The glut total returns (CERs) for dividend-paying banks are safe and huge for 30 days from the day of declaration, while CERs for dividend-neglecting banks for a similar period are huge and negative (Adelegan , 2009). Larger banks, those with higher profits and companies with few development opportunities have a greater propensity to pay dividends. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Gittman (2004, pp. 312) divided stocks into two types, such as common stock and preferred stock. He also demonstrated that dividends are the result of risk. Thus, basic stocks constitute a security of possession against essentially real or remunerative resources (Higgins, 1995), but he also stated that if the organization succeeds, investors are the main beneficiaries, and if it falters, they are the main failures. Smith (1988) showed that stocks are one of the most well-known types of venture capital. Individuals buy stocks for different reasons: some are concerned about the long-term growth of their company by purchasing low-value products from another company in the expectation of a considerable increase in the offering price over time. of the next two years. Another reason he proposed that in an established company, investors expect the stock development to be stable in the long term. (Smith, 1988) There has been a notable decline in normal dividend payout proportions over the years. (Fatemi and Bildik, 2012) Stock exchanges demonstrate that energy profits are lower among dividend-paying firms compared to their non-dividend-paying partners due to contrasts in dividend failures (Asem and Ebenezer, 2009). At the point when the deal related to corporate money now suggests a possibility of default, we demonstrate that the bank's estimate is a piecemeal decreasing component of the dividend approach for any utilization strategy, in the goal that the approach to dividends influences the estimation of the company. (Braouezec and Lehalle 2010) There is a remarkable positive relationship between bank performance and dividend payment of inspected banks. (Uwuigbe, Jafaru and Ajayi, 2012) Dividends are not considered relevant to income in the valuation display. (Al-Hares, AbuGhazaleh, & Haddad, 2012) Execution improves overall with increasing dividend yield. (Henne, Ostrowski and Reichling 2007) Bhatt and Pander (1994) in their study carried out an overview to know the impression of CEOs on dividend choices. According to their survey, the top five determinants of dividend agreement are: current profit, current dividend, expected future income and increase in capital base and liquidity. The benefitper share and taxes presented by Litzenberger and Ramaswamy (1980) appear to be reliable with a negative relationship between the rapid assessment of tax incentives and earnings per share such that EPS = total common stock income is divided by total shares outstanding. Tax is deducted from EBIT. The ex-dividend day More recently, Kalay and Michaely (1993) The ex-dividend day approximately fourteen days after the declaration day and approximately fourteen days before the payment day. In the event that the share is purchased the day before the dividend is ex-dividend, the most recent day will be incorporated into the announced dividend. In the event that the share is purchased when the ex-dividend arrives, the buyer will not receive the dividend. In the survey conducted by Naeem and Nasir (2007), Dividend Policy in the Banking Sector, they observed the determinants and patterns of dividend approaches. The results of their investigation demonstrate that savings areas are either unwilling to pay dividends or pay a small amount in the form of dividends and their current dividend choices are based on the previous year's dividends. preferred shares for investors. The company pays stock dividends from time to time which are not quite the same as trading dividends because they return shares to the investor and not money. It guarantees exceptional additions to investors. The owner's desire for dividends leads them to decide the offering price in this way, the provision of dividends is a critical choice taken by the financial managers of any organization. The declaration of dividends provides data on the current state of assets and allows the market to assess the current earnings of the company (Miller and Rock, 1985). Due to a remarkable result, the increase in stock price is unequal to normal dividends. The cost of shares is the sticker price of purchasing a security in a transaction. Without payment due to the reduced dividend estimate, the stock price may even exceed the market esteem, which is known as market undervaluation or exaggeration of the valuation of financial specialists . (Downs, 1991) Investors expect dividends but they are not guaranteed. (Gittman, 2004) Basic shares are held by the obvious owners of the company. Occasionally, they are referred to as "persistent owners" because they get what's left after the organization dies. (Gittman, 2004; Higgins 1995) Another type of stock is known as overtly claimed stock. Regular stocks owned by a general gathering of disconnected speculators or institutional financial specialists are called freely claimed stocks. Be that as it may, all the regular charge of a business owned by a small group of financial experts is considered a firmly claimed stock. When all the stock is owned by a single individual, it is called exclusive stock. Due to the farthest point of the number of offerings, the stock can be grouped into four kinds. For example, approving shares, extraordinary offers, treasury shares and issued shares. (Gittman, 2004) Approved offers represent the most extreme number of offers a company allows to be issued. Exceptional offers are retained by open. The treasury shares are repurchased by the company itself and are never considered a bargain again. In the end, the choice of stock buyback is extremely important as it can create an incentive for stocks by decreasing the remarkable number of stocks. (Port, 1976) Port also proposed that organizations should refrain from issuing shares to pay dividends when they, 2010)