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Journal of Management Research and Analysis


An analytical study on determinants of dividend policy with special reference to selected BSE sensex companies


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Article Type : Research Article

Author Details: Manjunatha K*,S B. Akash

Volume : 6

Issue : 1

Online ISSN : 2394-2770

Print ISSN : 2394-2762

Article First Page : 36

Article End Page : 41


Abstract

The purpose of the paper is to examine the financial factors determining dividend policy of companies selected under the study. Dividend policy is represented by individually or collectively of dividend per share, dividend yield and dividend payout ratio. The present study’s dividend policy is represented by dividend payout ratio only. Sample companies of the study are listed on BSE in India and the same sample companies are also the part of the constituent companies of BSE sensex. The study has used the data such as DPR, EBIT, total assets, total debt, shareholders equity, retaining earnings, current assets, current liabilities, and profit after tax of 15 companies for the period from 2007/08 to 2016/17 to obtain various ratios such as dividend payout ratio, profitability ratio, growth of the firm ratio, debt-equity ratio, investment opportunity ratio, liquidity ratio and firmsize ratio. These ratios of all selected companies are put in the form of pooled data and are analyzed with the help of pooled OLS model. The results of the study are that except profitability ratio, all other ratios used as independent variables in study are not statistically significant. Hence, profitability ratio is the only ratio among the selected ratios is the determinant of dividend policy of companies selected under study.

Keywords: Dividend policy, BSE sensex companies, Determinants of dividend policy, Correlation and multiple regression.

Doi :-https://doi.org/10.18231/j.jmra.2019.007