Firms management pays dividends and proves that their securities are attractive enough for buyers to purchase, even if they have to pay relatively expensive dividend taxes. However, some researchers strongly believed that the management of the firms cannot use the dividend payment as a signaling strategy, it seems to be costly. There is no need for sending signals as the actual shareholders and the outside shareholders are the same in the firm. Kindly discuss the influence of dividend payments on firms performance. Your discussions should include some example of calculations on your own figure in showing any decrement or increment in company performance related to dividend payment.