International Journal of Research in Finance and Marketing
  • Year: 2015
  • Volume: 5
  • Issue: 4

Factors determining the Dividend Policy-A case study of NSE NIFTY companies

  • Author:
  • T.V.V. Phani Kumar1, N. Megha Shyam2
  • Total Page Count: 8
  • Page Number: 48 to 55

1Associate Professor, Department of Finance, GITAM Institute of Management, GITAM University, Rushikonda, Visakhapatnam-530045

2Student, MBA(2013–15), GITAM Institute of Management, GITAM University, Rushikonda, Visakhapatnam-530045

Online published on 11 December, 2015.

Abstract

Dividend policy of a company depends on various factors. The present paperanalyses the influence of select factors viz., net profits, total assets and age of a company on distribution of dividends to shareholders. Companies comprising Nifty index were chosen for analysis. Results show that the net profits and age of the company are positively related to dividend payments and investment in fixed assets is negatively related to the dividend payments. Further, influences of age of company and total assets on dividend payments were high in FMCG sector whereas influence of net profits on dividend payments was high in Metal industry.

Keywords

Dividend Policy, Multiple Regression, NSE, NIFTY, Determinants of Dividend Policy