A multi-criteria framework for comparing dividend pay capabilities: Evidence from Indian FMCG and consumer durable sector

Abstract

In this paper, we aim to carry out a comparative analysis of the dividend pay capabilities (DPC) of the selected organizations belonging to the Fast Moving Consumer Goods (FMCG) and Consumer Durables (CD) sectors listed in BSE, India during the period FY 2013-14 to FY 2019. We select top 25 companies from FMCG group and top 5 firms from the CD sector on the basis of average market capitalization. For comparison purpose, we have considered six aspects (grounded on the extant theories on dividend policy) such as ownership, size, profitability, growth, liquidity and risk. We have used a new integrated Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) and Evaluation based on Distance from Average Solutions (EDAS) framework for our analysis. The result shows that companies do not show consistent performance over the years. We further have noticed that FMCG organizations show comparatively better capabilities that CD firms vis-à-vis dividend payment. Since, there are considerable variations in the ranking, we apply aggregation methods like Borda Count (BC), Copeland method (CM) and Simple additive weighting (SAW). We use two other popular Multi-Criteria Decision Making (MCDM) methods like multi-attributive border approximation area comparison (MABAC) and the Complex Proportional Assessment (COPRAS) for comparison with our framework to ascertain the reliability of our result.

A Multi-Criteria Based Stock Selection Framework in Emerging Market

“…Jiang et al (2022) utilized EDAS method in conjunction with the CPT for selection of appropriate site for construction of shopping mall. In the context of investment decision-making, in a very recent work Biswas et al (2022c) applied EDAS method for determining the dividend payment capabilities of Indian FMCG and consumer durables organizations.…”

A Performance based Ranking of Initial Public Offerings (IPOs) in India

“…-Ability to handle a large criteria set. Due to its benefits, LOPCOW has garnered an increasing use in solving practical problems related to engineering, social science, management and technological issues (for example, Biswas et al, 2022aBiswas et al, , 2022bBiswas et al, , 2022cBiswas et al, , 2022dBadi et al, 2022). In the present problem, we use LOPCOW not only for obtaining the criteria weights but also for ranking of the IPOs.…”