Journal of Finance and Accounting
ISSN (Print): 2333-8849 ISSN (Online): 2333-8857 Website: http://www.sciepub.com/journal/jfa Editor-in-chief: Apply for this position
Open Access
Journal Browser
Go
Journal of Finance and Accounting. 2017, 5(2), 40-43
DOI: 10.12691/jfa-5-2-2
Open AccessArticle

A Research Paper on Impact of Dividend Policy Determinants of Listed Companies on Indian Capital Market

Anu Riya K.J1, , Sreejith P.R1 and A. Ananth1

1Gnanam School of Business Expressway, Trichy - Thanjavur Expressway, Sengipatti, Thanjavur District, Tamil Nadu

Pub. Date: June 14, 2017

Cite this paper:
Anu Riya K.J, Sreejith P.R and A. Ananth. A Research Paper on Impact of Dividend Policy Determinants of Listed Companies on Indian Capital Market. Journal of Finance and Accounting. 2017; 5(2):40-43. doi: 10.12691/jfa-5-2-2

Abstract

The core purpose of financial management is the maximization of shareholders’ wealth with three core decisions that is, dividend, financing and investment decisions. In simple words dividend is the percentage of net profit of a company which is distributed among the shareholders. The research gap identified for this study is that, a comparison of different industries dividend policy impact on the Indian Capital Market and the samples are drawn from the National Stock Exchange (NSE) India. The main objective of this project is to study the influence of dividend policy on the market price of selected company’s scrip in NSE. The researcher has chosen Empirical study to prove the hypothesis and 15 companies balance sheet for 10 years (2007-2016) 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. The analyses conducted, the parameter estimates were viewed within AMOS graphics and displayed the standardized parameter estimates. The regression analysis model revealed that the significant impact of the independent variables on the market price of share as well as impact of dividend policy determinants on the outcome variable market price.

Keywords:
capital structure shareholders’ equity debt financial ratios and share price

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References:

[1]  Adnan Ali, Farzand Ali Jan, Ilyas Sharif (2015). Effect of Dividend Policy on Stock Prices.
 
[2]  A.A. Lonie, G. Abeyratna, D.M. Power, C.D. Sinclair, (1996). The stock market reaction to dividend announcements: A UK study of complex market signals
 
[3]  Abdullah Al Masum (2014). Dividend policy and its impact on stock price – A study on commercial bank listed in Dhaka stock exchangev.
 
[4]  Aswath Damodaran (2008). Corporate Finance Theory and Practice.
 
[5]  Byson B. Majanga (2015). The Dividend effect on stock price – An empirical analysis of Malawi listed companies.
 
[6]  Bo Bae Choi, Jangkoo Kang, Doowon Lee, (2014). Determinants and market implications of differentiated dividends in Korea.
 
[7]  Dr. Zahra Lashgari1, Mousa Ahmadi (2014). The Impact of Dividend Policy on Stock Price Volatility in the Tehran Stock Exchange.
 
[8]  Dr. Sanjay J. Bhai (2008). Dividend policy behaviour in the Indian capital market: A study of BSE-30 Companies.
 
[9]  Dr. Niharika Maharshi, Sarika Malik (2015). The Impact on Dividend policy on the stock market price of the shares and growth of joint stock companies covered in Sensex.
 
[10]  Francis (2003). Variations in maternal care in the rat as a mediating influence for the effects of environment on development.
 
[11]  Fawaz Khalid Al-Shawawreh (2014). The Impact on Dividend policy on share price volatility: Empirical evidence from Jordanian stock market.
 
[12]  Gizelle F. Perretti, Marcus T. Allen, H. Shelton Weeks (2013). Determinants of dividend policies for ADR firms.
 
[13]  Hidayat Ullah, Shahab e Saqib, Hazrat Usman (2015). The impact of Dividend policy on stock price volatility: A case of selected firm from textile industry in Pakistan.
 
[14]  Holmbeck (1997). Toward terminological, conceptual statistical clarity in the study of mediators and moderators: examples child-clinical and pediatric psychology literatures.
 
[15]  I M Pandey (2015). Financial Management.
 
[16]  Khaled Hussainey, Chijoke Oscar Mgbame, Aruoriwo M. Chijoke-Mgbame, (2011). Dividend policy and share price volatility: UK evidence.
 
[17]  Lilian Luvembe, Mungai John Njangiru, Dr. Eddie Simiyu Mungami (Nov 2014). Effect of Dividend payment on Market value of listed banks in Kenya.
 
[18]  Md. Abdullah Al- Hasan, Md. Asaduzzaman, Rashed al Karim (4(Sep-Oct) 2013). The Effect of Dividend Policy on Share Price: An Evaluative Study.
 
[19]  Owen Jakata, Philimon Nyamugure (2014). The effects of Dividend policy on share prices: Empirical evidence from the Zimbabwe stock exchange.
 
[20]  Stephen Bassey Duke, Nneji Ikenna D, Nkamare S.E (February 25, 2015). Impact of Dividend Policy on Share Price Valuation in Nigeria Bank.
 
[21]  S.M. Tariq Zafar, D.S. Chaubey and S.M. Khalid (July 2012). A study on Dividend policy and its impact on the shareholders wealth in selected banking companies in India.
 
[22]  Simon Maina Waithaka, John Karanja Ngugi, Jonah Kipkogei Aiyabei, Julius KirimiItunga, and Patrick Kirago (2012). Effects of Dividend policy on share price: A case of companies in Nairobi securities exchange.
 
[23]  Stephen A. Ross, Randolph W. Westerfield, Jeffrey Jaffe (2004). Corporate Finance.
 
[24]  Upananda Pani, Dividend policy and stock price behaviour in Indian corporate sector: A panel data approach.
 
[25]  Yusniliyana Yusof, Suhaiza Ismail, (2016). Determinants of dividend policy of public listed companies in Malaysia.