Title: The Impact Of The Dividend Policy On The Market Price Of The Shares And Growth Of Joint Stock Companies Covered In Sensex
Abstract: When a corporation earns a profit or surplus, it can either re-invest it in the business (called retained earnings), or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend.Dividend policy is concerned with financial policies regarding paying cash dividend in the present or paying an increased dividend at a later stage. Whether to issue dividends and what amount, is determined mainly on the basis of the company's inappropriate profit (excess cash) and influenced by the company's long-term earning power. When cash surplus exists and is not needed by the firm, then management is expected to pay out some or all of those surplus earnings in the form of cash dividends or to repurchase the company's stock through a share buyback program.The study is focussed on achievement of following four objectives.To empirically examine the determinants of dividend smoothing by firms and find out its linkage with information content of dividends.To analyze the influence of firms’ characteristics like profitability, growth, risk, cash flows, agency cost and on dividend payment pattern. i.e. to identify various determinants of dividend payout.To investigate the association between various ownership groups and dividend payout policies of Indian corporate firms.To find the impact of dividend announcement on shareholders’ wealth. . For the result of the study researcher analysed the data by using the Statistical package of SPSS, employing the statistical tool of T Test Analysis,correlation and regression.
Publication Year: 2015
Publication Date: 2015-01-01
Language: en
Type: article
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Cited By Count: 4
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