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

Venkataramanaiah, M.; Latha, Ch. Madhavi; Rao, K. Siva Nageswara

doi:10.17010/ijf/2018/v12i1/120740

Cited by 3 publications

(2 citation statements)

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“…Also, they found a positive relationship between companies' profitability and dividend payments, a negative relationship between leverage and dividend payments, and no significance between liquidity and dividend payments. However, they presented that there is some negative relation between the size of a company and dividend payouts (Venkataramanaiah, Madhavi Latha & Siva Nageswara Rao 2018). In another study also conducted on the National Stock Exchange (the Nifty 50 companies) but using the Tobit regression model, it was found that a firm's size and its investment opportunities are significant determinants of corporate dividend policies in India.…”

Section: Discussionmentioning

confidence: 98%

The Determinants of Corporate Dividend Policy in Poland

Rój

2019

ECO

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[full article and abstract in English] The purpose of this research is to examine the factors that determine the dividend policy of non-financial firms listed on the Warsaw Stock Exchange (WSE) in Poland and that of the annually paid dividends. Up to now, many empirical studies related to dividend policy were carried out, showing the differentiation of factors affecting the dividend policy and their interaction. Thus, with this study, it would be possible to give a view on the dividend policy of corporations listed on the WSE for the period from 2008 to 2016. The study covers non-financial companies listed on the WSE in Poland. The Tobit regression is used to identify the impact of factors influencing the companies’ distribution of dividends. The variables that may explain a firm’s dividend decision and that were used in this study are selected based on the theory and available empirical researches and then also determined by data availability. These are profitability, investment opportunities, measures of size, leverage, and liquidity. As a result of this study, the factors that determine the dividend policy of companies were verified in the context of the companies listed on the WSE. Moreover, it indicates which of the existing theories on dividend policy could be applied to the capital markets of Poland. Thus, it provides new insights into the theory of dividend policy.

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Section: Discussionmentioning

confidence: 98%

The Determinants of Corporate Dividend Policy in Poland

Rój

2019

ECO

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“…The extant literature suggests that firm characteristics such as profitability, growth opportunities, size, leverage and maturity are the key variables in determining dividend policy. The empirical literature on Indian firms tend to suggest the importance of various factors such as, earnings, past dividends, investment opportunities, leverage, size of the firm, profitability and tax, in determining firm's dividend policy (Baker and Kapoor, 2015;Labhane and Mahakud, 2016;Venkataramanaiah et al, 2018). However, there is no conclusive evidence on which fundamental variables determines the dividend policy of Indian firms.…”

Section: Discussionmentioning

confidence: 99%

Determinants of dividend payout of Indian manufacturing companies

Thakur

Kannadhasan

2018

JIBR

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Purpose The purpose of this study is to examine the influence of firm characteristics such as profitability, growth opportunities, size, leverage and maturity on dividend policy of Indian firms. Design/methodology/approach The study analyzes the determinants of dividend policy of manufacturing firms in India using panel data. Because of the non-linearity behaviour of dividend pay-out by firms, the study uses quantile regression method to examine whether the determinants of dividends vary depending on the company’s level of dividends. Findings Overall, the results show important difference between ordinary least square and quantile regression estimates and depict differential effect on dividend at different levels. The notable difference occurs because either the significance changes (e.g. for profitability and growth opportunities) or because the magnitude of coefficients changes (e.g. for size, profitability and growth opportunities). Originality/value This finding is useful in identifying the dividend issuing companies. Further, results of this study would be helpful to the mangers to manage their financial positions that subsequently help in retaining and attracting the probable investors.

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