ICTACT Journal on Management Studies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of DPS on MPS:A Study on Leading Indian Cement Companies


Affiliations
1 Institute of Computer Accountants, Kolkata, India
     

   Subscribe/Renew Journal


Risks and uncertainties are inherent in every organisation. Different class of investors in do not shoulder the same degree of risk. An investor in bonds earns return in from interest while shareholders depend on dividends, stock price appreciation. Dividend refers to the distribution of profit among the shareholders. Profit earned by a company can be retained for future usage, or distributed in form of dividend or both. Dividend decision is one of the important decisions, since it determines the amount of profit to be distributed among shareholders and the amount to be retained earnings for future investment purpose. This is known as Dividend Policy. The main objective of every company is to maximize shareholders wealth rather than profit. Shareholders gain both from Dividend as well as Capital Appreciation. Moreover, dividend policy of a company has an impact on its market price. Market price increases only if a company provides stable return to its shareholders. This paper focuses on the impact of dividend on Market Price of a company.

Keywords

Indian Cement Sector, Net Profit Margin, Dividend Per Share, Dividend Yield, Earnings Per Share, Market Price Per Share, Price Earnings Ratio.
Subscription Login to verify subscription
User
Notifications
Font Size

  • “Cement Sector Analysis Report”, Available at: https://www.equitymaster.com/research-it/sector-info/cement/Cement-Sector-Analysis-Report.asp?utm_source=stockquote.

  • Sri Ayan Chakraborty, “Value Based Analysis: A Study On Leading Indian Cement Firms”, International Journal of Business and Administration Research Review, Vol. 2, No. 21, pp. 39-65, 2018.

  • J.E. Krishman, “Principles of Investment”, McGraw Hill, 1963.

  • J. Lintner, “Distribution of Incomes of Corporations among Dividends, Retained Earnings and Taxes”, The American Economic Review, Vol. 46, No. 2, pp. 97-113, 1956.

  • A. Kanwal and S. Kapoor, “Determinants of Dividend Payout Ratios- A Study of Indian Information Technology Sector”, International Research Journal of Finance and Economics, Vol. 7, No. 5, pp. 63-71, 2008.

  • S. Bose and Z. Husain, “Asymmetric Dividend Policy of Indian Firms: An Econometric Analysis”, International Journal of Applied Economics and Finance, Vol. 5, No. 3, pp. 78-85, 2011.

  • T.S.F. Alzomania and A. Al-Khadiri, “Determination of Dividend Policy: The evidence from Saudi Arabia”, International Journal of Business and Social Science, Vol. 4, No. 1, pp. 181-192, 2013.

  • H.K. Baker, G.E. Farrelly and R.B. Edelman, “A Survey of Management Views on Dividend Policy”, Financial Management, Vol. 14, No. 3, pp. 78-84, 1985.

  • Chandra Prasanna, “Financial Management Theory and Practice”, 8th Edition, McGraw Hill Education, 2011.

  • I.M. Pandey, “Financial Management”, 11th Edition, Vikas, 2018.


Abstract Views: 254

PDF Views: 0




  • Impact of DPS on MPS:A Study on Leading Indian Cement Companies

Abstract Views: 254  |  PDF Views: 0

Authors

Sri Ayan Chakraborty
Institute of Computer Accountants, Kolkata, India

Abstract


Risks and uncertainties are inherent in every organisation. Different class of investors in do not shoulder the same degree of risk. An investor in bonds earns return in from interest while shareholders depend on dividends, stock price appreciation. Dividend refers to the distribution of profit among the shareholders. Profit earned by a company can be retained for future usage, or distributed in form of dividend or both. Dividend decision is one of the important decisions, since it determines the amount of profit to be distributed among shareholders and the amount to be retained earnings for future investment purpose. This is known as Dividend Policy. The main objective of every company is to maximize shareholders wealth rather than profit. Shareholders gain both from Dividend as well as Capital Appreciation. Moreover, dividend policy of a company has an impact on its market price. Market price increases only if a company provides stable return to its shareholders. This paper focuses on the impact of dividend on Market Price of a company.

Keywords


Indian Cement Sector, Net Profit Margin, Dividend Per Share, Dividend Yield, Earnings Per Share, Market Price Per Share, Price Earnings Ratio.

References