Dividend policy theory is a concept in finance that examines the decision-making process behind a company's dividend payouts to shareholders. Dividend policy theory aims to identify the optimal dividend payout policy for a company that maximizes shareholder value. There are...

Capital structure theory is a concept in finance that examines the optimal mix of debt and equity financing for a company. Capital structure refers to the way in which a company finances its operations and investments by using a...

Agency theory is a concept in economics and management that examines the relationship between two parties: a principal and an agent. The principal is the owner or manager of an organization, while the agent is the person who is...

Option pricing theory is a fundamental concept in finance that explains how options are priced in the market. Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at...

The Arbitrage Pricing Model (APM) is a financial model used to estimate the expected returns of an asset based on its exposure to different risk factors. The model was developed by Stephen Ross in 1976 as an alternative to...