Influence of dividend policy on the value of the firm: A study on manufacturing sector

The impact of dividend on market price of share is a controversial issue. To solve this issue in our market perspective, this study is done whether there is impact of dividend per share (DPS) on market price per share (MPS) or not. The regression model is used to find out the impact of dividend on market price of share. The study is conducted on manufacturing sector and is found that the DPS has impact on MPS. There are other co-factors such as earning per share, price earnings ratio, which have also impact on market price of share. So, the findings support the relevance theory of dividend on shareholders’ wealth. This finding will help the dividend decision makers and investors in taking corrective dividend decision.