A Critical Analysis of Inter-Relationship between Organs of Dividend Policy in Indian Pharmaceutical Industry

This study aims to analyse the inter-relationship between organs of the dividend policy in Indian pharmaceutical industry. This study implies the nature of empirical research design. Purpose of this study is to know the trends and patterns of dividend policy in the pharmaceutical industry. Find out the significant determinants that influence the dividend decisions in the pharmaceutical industry. The inter-relationship between the determinants of the dividend was identified and examined by applying appropriate statistical techniques. The extent of the relationship between the dependent and independent variables occurred and rediscovered. This study has tested twelve hypotheses to arrive the assumption for the formulation of the conceptual framework for this study. The results revealed from the value of the coefficient of determination known as R2 is equal to 0.956. It means that the variables are put together to explain the variations in DPS to the extent of 95.6% in the pharmaceutical industry. The Structural Equation Modelling has applied in this study to identify the dividend policies followed in the pharmaceutical industry, and it has discovered that the following mediating variables like Earnings Per Share, Debt-Equity Ratio, Sales Growth, Net Profit to Net worth Ratio, and Operating Profit Ratio as the essential determinants for dividend decisions.