SAMVAD: International Journal of Management

Open Access Open Access  Restricted Access Subscription Access

A Comparative Analysis of Dividend Policy of Public and Private Sector Banks in India


Affiliations
1 Acharya Bangalore Business School, Bangalore, India
2 VIT Business School, Chennai, India
 

Theories of Dividend Distribution are one of the hotly debated topics in corporate finance. In this research paper forty banking sector companies in India are taken into account, for analysis. Out of these, twenty four are public sector banks, whereas sixteen are private sector banks. The statistical analysis showed that there is no significant difference in Dividend Pay-out Ratio of public and private sector banks. The data is considered for five financial years, i.e. 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15.

Keywords

Banks, Dividend Pay-Out Ratio, Private, Public.
User
Notifications
Font Size

  • Abdullahi, R. (2011). Determinants of Dividend Growth Pattern of the Deposit Money Banks in Nigeria (A Study of Selected Banks). A Thesis Submitted for the Degree of Masters of Science (M.Sc) in Accounting and Finance of Ahmadu Bello University, Zaria.

  • Al-Twaijry, A. A. (2007). Dividend policy and Payout Ratio: Evidence from the Kuala Lumpur Stock Exchange. The Journal of Risk Finance, 8(4), 349–363.

  • Al-Kuwari, D. (2009). Determinants of the Dividend Payout Ratio of Companies Listed on Emerging Stock Exchanges: The Case of the Gulf Cooperation Council (GCC) Countries. Global Economy and Finance Journal, 2(2), 38–63.

  • Al-Malkawi, H. (2007). Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model. Journal of Economics and Administrative Sciences, 23(2), 44–70.

  • Asif, Rasool & Kamal (2011). Impact of Financial Leverage on Dividend Policy: Empirical Evidence from Karachi Stock Exchange-Listed Companies. African Journal of BusinessManagement, 5(4), 1312–1324.

  • Amidu, M. & Abor, J. (2006). Determinants of Dividend Payout Ratios in Ghana. Journal of Risk Finance, 7, 136–145.

  • Anupam, M. (2012). An Empirical Analysis of Determinants of Dividend Policy - Evidence from the UAE Companies. Global Review of Accounting and Finance, 3(1), 18–31.

  • Bhattacharya, S. (1979). Imperfect information, dividend policy, and the “bird in the hand” fallacy. Bell Journal of Economics, 10, 259–270.

  • Bishop, S. R., Harvey, R. C., Robert, W. F., & Garry, J. T. (2000). Corporate Finance. Sydney: Prentice Hall Inc.

  • Black, F. (1976). The Dividend Puzzle. The Journal of Portfolio Management, 2(2), 5–8.

  • Bose, S. and Husain, Z. (2011) Asymmetric Dividend Policy of Indian Firms: An Econometric Analysis. International Journal of Applied Economics and Finance, 5(3), 78–85.

  • Brittain, J. A. (1966). The Tax Structure and Corporate Dividend Policy. American Economic Review, 54(3), 1–10.

  • Fama & Babiak (1968). Dividend Policy: An Empirical Analysis. Journal of American Statistical Association, 1132–1161.

  • Gordon, J. & Shapiro, E. (1956). Capital Equipment Analysis: The Required Rate of Profit. Management Science, 3, 102–110.

  • Husam, A. N. & Al-Malkawi. (2007). Determinants of Corporate Dividend Policy in Jordon: An Application of the Tobit Model. Journal of Economic and Administrative Sciences, 23(2), 44–70.

  • Jensen, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economic Review, 76 (2), 323–329.

  • Kania, S. L. & Bacon, F. W. (2005). What factors motivate the corporate dividend decision? American Society of Business and Behavioral Sciences E-Journal, 1(1), 97–107.

  • Kanwal, A. & Kapoor, S. (2008). Determinants of Dividend Payout Ratios - A Study of Indian Information Technology Sector. International Research Journal of Finance and Economics, 15, 63–71.

  • Krishman, J. E. (1963). Principles of Investment. McGraw Hill, New York.

  • Lintner, J. (1956). Distribution of Incomes of Corporations among Dividends, Retained Earnings and Taxes. The American Economic Review, 46(2), 97–113.

  • Mehta, A. (2012). An Empirical Analysis of Determinants of Dividend Policy-Evidence from the UAE Companies. Global Review of Accounting and Finance, 3(1), 18–31.

  • Miller, M. H. & Modigliani, F. (1961). Dividend Policy, Growth and the Valuation of Shares. The Journal of Business, 34(4), 411–433.

  • Mishra, C. & Narender, V. (1996). Dividend Policies of State Owned Enterprises in India – An Analysis. Finance India, 10(3), 632–645.

  • Musa, I. (2009). The Dividend Policy of firms quoted on the Nigerian Stock Exchange: An Empirical Analysis. African Journal of Business Management, 3(10), 555–566.

  • Musiega, M. G., Alala, O. G., Musiega, D., Maokomba O. C. & Egessa, R. (2013). Determinants of Dividend Pay out Policy among Non-Financial Firms on Nairobi Securities Exchange, Kenya. International Journal of Scientific & Technology Research, 2(10), 253–266.

  • Naceur, S. B., Goaied, M. & Belanes, A. (2006). In the Determinants and Dynamics of Dividend Policy. International Review of Finance, 6(1-2), 1–23.

  • Naeem, S., & Nasr, M. (2007). Dividend Policy of Pakistani Firms: Trends and Determinants. International Review of Business Research Papers, 3(3), 242–254.

  • Okpara, A., & Godwin, C. (2010). A Diagnosis of the Determinants of Dividend Pay-Out Policy in Nigeria: A Factor Analytical Approach. American Journal of Scientific Research, 8(1), 57–67.

  • Pandey, M. (2004). Financial Management. Vikas Publishing House Private Limited.

  • Rao & Sarma. (1971). Dividends and retained Earnings of public and private limited companies in India. The Journal of Finance, 26(3), 783–785.

  • Ross, S. A., Westerfield, R. W. & Jaffe, J. F. (2009). Corporate Finance Fundamentals. (8th ed.). McGraw Hill.

  • Saxena, A. K. (1999). Determinants of Dividends Payout Policy: Regulated Vs Unregulated Firms. Retrieved from www.westiga.edu/bquest/payout.htm

  • Sumninder, B. K., & Prabhjot K. (2012). Impact of Dividend Policy on Shareholder’s Wealth: An Empirical Analysis of Indian Information Technology Sector. Asia-Pacific Finance and Accounting Review, 1(3), 17–24.


Abstract Views: 537

PDF Views: 247




  • A Comparative Analysis of Dividend Policy of Public and Private Sector Banks in India

Abstract Views: 537  |  PDF Views: 247

Authors

Souvik Banerjee
Acharya Bangalore Business School, Bangalore, India
K.T. Rangamani
VIT Business School, Chennai, India

Abstract


Theories of Dividend Distribution are one of the hotly debated topics in corporate finance. In this research paper forty banking sector companies in India are taken into account, for analysis. Out of these, twenty four are public sector banks, whereas sixteen are private sector banks. The statistical analysis showed that there is no significant difference in Dividend Pay-out Ratio of public and private sector banks. The data is considered for five financial years, i.e. 2010-11, 2011-12, 2012-13, 2013-14, and 2014-15.

Keywords


Banks, Dividend Pay-Out Ratio, Private, Public.

References