Relevance of information asymmetry models a study of indian it sector

This paper has two-prongedfocus. It is an attempt to study various information asymmetry models of dividendpolicy. Morel importantly, it establishes a relationship between PAT and equity dividend with the aid of simple regression analysis. The basic objective of the study is to identify the primary determinant of dividend policy in Indian IT industry. Thus, this paper investigates wh ether ITfirms strive for stability and regularity of dividends and tend to arrive at a target payout ratio or not. An effort has been made to find the applicability of information asymmetry models in IT sector through our study. The findings suggest that dividend is an active decision variable in IT sector.