Dividend policy research papers

For them, a certain dividend payment today is more satisfactory than highly uncertain capital gains in the future.

does dividend policy affect shareholder wealth

Also, Miller and Rock [25] proved in the same way as Bhattacharya [13] that asymmetries regarding the information between the inside shareholders and outside shareholders will help a signaling role for dividends. Objective of the Study Indian companies provide a better scope for analyzing dividend policy issues for the following reasons; first, most dividend policy research studies are based on samples of free economic markets.

The exact proportion of earnings that the company wants to pay in the form of dividends is tight rope balancing act for the management as the shareholders do prefer dividends in the form of cash as well as appreciation of the securities they hold which results out of reinvested profits.

If a company is new with investment opportunities and growing robustly, it is natural for it to follow a no payout policy.

Report about dividend policy of any company project pdf

Also, Miller and Rock [25] proved in the same way as Bhattacharya [13] that asymmetries regarding the information between the inside shareholders and outside shareholders will help a signaling role for dividends. One is to buy the stocks which pay dividends and cashing the dividends, the other one being that of purchasing a non-dividend paying shares and frequently selling a part of the portfolio. They were used the Multiple regression technique to analyses the data and prove the hypothesis. The research done by Pruitt and Gitman [17] by interviewing various people of the management concerned with the financial decisions of the firm of a large number U. The researcher has chosen Empirical study to prove the hypothesis and 15 companies balance sheet for 10 years were collected from the respected companies websites and the following ratios have been calculated to test the hypothesis, Net profit ratio, Gross profit ratio, Earning per share, Dividend yield, Dividend payout ratio, Return on equity and the Market price of share. Transaction costs come in favor of dividends as a supporting argument. According to the theory on dividends developed by Shefrin and Statman [14] , dividends can make a big difference to the shareholders based on whether that cash is coming in the form of dividends or capital gains, even though the quantum of cash received is the same. Four decades of academic research was not in a position to resolve it. Another important factor which influences the dividend payout decision of a firm is the cash position of the firm. There were totally companies in the industry of electrical machinery manufacturing. Frankfurter et al. The dividend policy is that impacts the stock market price of the company. The researchers used multiple regression analyses to analyze the relationship between the dependent variables and the share prices of the companies. Research Methodology The researcher has chosen the empirical study to test the impact of dividend policy determinants on Indian capital market.

Yusniliyana Yusof, Suhaiza Ismail, 25 conducted a study to investigate the determinants of the dividend policy of public listed companies in Malaysia.

Some of findings of this study were profit retention by firms will result in a decrease in the value of the stock market prices and dividend payout have positive impact on the share prices of respected stocks. Rozeff [19] could show a negative association between dividend payments and sales which is significant.

Tariq Zafar, D. Research in the field of dividend policy shows that a coming to a consensus on it is highly impossible and also shows that the practice of corporate dividend policy is different among different firms as well as different countries.

The research done by Pruitt and Gitman [17] by interviewing various people of the management concerned with the financial decisions of the firm of a large number U.

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Dividend policy and share price volatility: UK evidence