1. Internal factors
a. The scale of investment opportunities the company
The distribution of dividends for a company is capital flight (voluntary of course, but a leak of any well …) which can be resented by its leaders so evidence of, also needs significant funding needs for the realization of profitable investment projects.
b. The level of debt of the company
Too much debt a company may be required, following pressure from its creditors to reduce the level of dividends and maintain a retention rate of profit high enough to able to meet its commitments (Baker and Wurgler 2002, p. 63). Indeed, leaders of a firm, the more they face of high interest rates, and / or they are at a rate debt close to their potential debt, they are more reluctant to adopt a distribution policy generous.
c. The liquidity of the company
Although the company has made a profit, a company can find it impossible to pay dividends because of its weak position in cash. The freezing of a dividend or an increase of the dividend to a lower level would mitigate the negative impact of dividend on the company’s cash (Allen and Michaely2002, p.229).
d. The informational factor
Where a company wishes to communicate to the market a information on its future cash flows, it can use the dividend as a means to achieve its ends. Indeed, leaders can influence the level of dividends to show their optimism about future earnings their business.
太多的债务的公司可能需要，从其债权人的压力减少股息水平和保持利润高得足以能够满足其承诺的保留率（Baker和Wurgler 2002，p. 63）。事实上，一个公司的领导人，他们面临的更高的利率，和/或在接近其潜在的债务的债务率，他们更不愿意采取分配政策的慷慨。