Determinants of Dividend Policy in the Indian Corporate Sector : A Study of Companies Listed on Nifty 50, NSE

Authors

  •   M. Venkataramanaiah Professor and Dean, Institute of Management Studies, Golden Valley Integrated Campus (GVIC), Madanapalli, Chittoor -517 325, Andhra Pradesh
  •   Ch. Madhavi Latha Research Scholar, School of Management Studies, Vignan Foundation for Science, Technology & Research, Guntur, Andhra Pradesh
  •   K. Siva Nageswara Rao Professor, School of Management Studies, Vignan Foundation for Science, Technology & Research, Guntur, Andhra Pradesh

DOI:

https://doi.org/10.17010/ijf/2018/v12i1/120740

Keywords:

Dividend Policy

, NSE of India, Financial Performance, Leverage, Liquidity

G1

, G3, G11, G35

Paper Submission Date

, April 20, 2017, Paper sent back for Revision, December 10, Paper Acceptance Date, December 21, 2017.

Abstract

The present study investigated determinants of dividend policy of Nifty 50 of National Stock Exchange of India Limited (NSE). The paper examined the effects of four basic variables on the dividend policy. These factors included economic performance of organizations, liquidity, leverage, and size of the firm. Regression analysis was employed to study the selected determinants that affected the dividend payout policy of the firms listed on the NSE. A positive and significant relationship was found in between organization's economic performance (ROE) and dividend payout policy, while a significant negative relationship was found between size and dividend policy. In contrast, a negative relationship and no significance was found in between liquidity and dividend payout policy. The same tendency was found in between leverage and dividend policy of the listed sample companies of Nifty 50.

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Published

2018-01-01

How to Cite

Venkataramanaiah, M., Madhavi Latha, C., & Siva Nageswara Rao, K. (2018). Determinants of Dividend Policy in the Indian Corporate Sector : A Study of Companies Listed on Nifty 50, NSE. Indian Journal of Finance, 12(1), 37–46. https://doi.org/10.17010/ijf/2018/v12i1/120740

Issue

Volume 12, Issue 1, January 2018

Section

Articles
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Europe PMC

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