Financial managers face three key decision areas: investment, financing, and profit distribution (dividends). When a company generates profits, it must choose between reinvesting those profits or distributing them to shareholders as dividends. Dividends are profit-sharing payments made to shareholders, and dividend policy reflects the company's financial health and stability. Managers must strike a balance between retaining profits for growth and investment and distributing dividends to shareholders. The effect of dividend policy on stock prices is debated in the literature. While some argue that there is an optimal dividend rate, others claim that dividend payments directly affect stock prices. This study investigates the existence of a causal relationship between earnings per share distributions and market value of firms that pay regular dividends. Furthermore, using a panel model, the effect of dividend payments on company market value was investigated in a sample of companies paying regular dividends, where company market value was the dependent variable and earnings per share, return on assets, growth opportunities, leverage ratio, and current ratio were the independent variables. The analysis revealed a significant bidirectional causal relationship between dividend payments and firm market value, finding that dividend payments are positively related to firm market value. Additionally, it was found that the variables of operating profitability, growth opportunities, and leverage ratio are positively correlated with the market value of the business.