Dividend Policy The Case of the Moroccan Company Maroc Telecom

HARAMA Meryam, El Haddad Salim

Abstract: The distribution policy or dividend policy refers to the choice of the company as to the fraction of profits to be distributed to shareholders in the form of dividends. It is a question of returning part of the cash generated by the company to the shareholders. The effect of the distribution of dividends on the value of the company is not entirely neutral. Indeed, the company may decide to increase the distribution rate to signal a high profitability, or to reduce agency costs and avoid underinvestment by management, or to boost the stock price. During the elaboration of this paper, we tried to highlight the different dividend policies by applying it to the company Maroc Telecom.

Keywords: Dividend, Distribution, Theory, Agency Theory