Payout policy refers to the strategies and decisions made by companies regarding how they distribute profits to their shareholders. This area of research focuses on understanding the various factors that influence a company's choice of payout method, such as dividends, share buybacks, or reinvestment in the company. Researchers in this field examine the impact of payout policies on shareholder value, company performance, stock prices, and other financial metrics. They also investigate how different payout policies are perceived by investors and how they affect market reactions. Overall, payout policy research aims to provide insights into the best practices and strategies for companies to maximize shareholder wealth through their payout decisions.