Indian Journal of Finance

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Determinants of Corporate Dividend Policy: A Study of Sensex Included Companies


Affiliations
1 Lecturer, Department of Management Studies, National institute of Science and Technology, Berhampur, 761008, Orissa, India
2 Professor, Post Graduate Department of Commerce, Berhampur University, Berhampur, 760007, Orissa, India

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Dividend Policy decision is an important policy decision which has remained in the controversy since the evolution of corporate financial research on dividend policy. Since long time, the finance scholars are in search of the truth relating to its relevance and the factors that influence the dividend policy through a large number of empirical investigations. However, due to diverse empirical results, the researchers have not reached a universally accepted explanation for the dividend policy of the firms. The present study is an attempt to give a focus on the leading factors that determine the dividend behaviour of the SENSEX included firms. The study has been carried out by using regression analysis, which is used to find out a mathematical relation between the dependent and the independent variables to see the effectiveness of both. From the study, it has been found that two variables namely Earning Per Share (EPS) and Dividend Per Share (DPS) as significant out of seven variables considered for the study. This supports the many empirical studies carried out earlier, which may serve as ready reference for future research in the field of dividend policy.
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  • Determinants of Corporate Dividend Policy: A Study of Sensex Included Companies

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Authors

Pramath Nath Acharya
Lecturer, Department of Management Studies, National institute of Science and Technology, Berhampur, 761008, Orissa, India
Prasanna Kumar Biswasroy
Professor, Post Graduate Department of Commerce, Berhampur University, Berhampur, 760007, Orissa, India
Rudra Prasanna Mahapatra
Professor, Post Graduate Department of Commerce, Berhampur University, Berhampur, 760007, Orissa, India

Abstract


Dividend Policy decision is an important policy decision which has remained in the controversy since the evolution of corporate financial research on dividend policy. Since long time, the finance scholars are in search of the truth relating to its relevance and the factors that influence the dividend policy through a large number of empirical investigations. However, due to diverse empirical results, the researchers have not reached a universally accepted explanation for the dividend policy of the firms. The present study is an attempt to give a focus on the leading factors that determine the dividend behaviour of the SENSEX included firms. The study has been carried out by using regression analysis, which is used to find out a mathematical relation between the dependent and the independent variables to see the effectiveness of both. From the study, it has been found that two variables namely Earning Per Share (EPS) and Dividend Per Share (DPS) as significant out of seven variables considered for the study. This supports the many empirical studies carried out earlier, which may serve as ready reference for future research in the field of dividend policy.