Impact of Investors’ Ratios on Dividend Decisions with Special Reference to Select Cement Companies in India:An Analytical Study

Cement industry has been considered as a road map for the development of a nation. As far as Indian cement industry is concerned, it was under price control regime until the year 1990 and after the economic reforms initiated by the Government of India. It took a breathe of relief from full control and rigid supervision, yet in the pricing aspect, is still under the interference of government. Though India stands at the second largest manufacturer of the cement in the international arena, it is surprised to note that, the consumption does not witness a substantial improvement due to the inability of poor people to construct concrete houses leaving them to dwell in huts and mud houses. Besides the truth, India takes an advantage of enhancing demand by the way of constructing bridges, laying cement roads to raise her status as a developing nation in the process of globalization. As far as domestic demand of the commodity is concerned, the industry faces consistent demand and with the high market demand, nearly 80% of the total production of the cement is controlled by major 15 firms in the industry so as to contribute 8% in India’s economic development. By keeping the above fact in view, this paper has made an attempt to study the trend and progress of corporate dividend to the share holders so as to highlight the importance of dividend decision to make use of the available resources at the firm’s disposal for future growth and perhaps the wealth of the shareholders.