Dividend Interdependency: A Study on Select Iron and Steel and Cement Industries in India
| Autor: | Biswajit Prasad Chhatoi, Deepak Pattanayak |
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| Rok vydání: | 2014 |
| Předmět: | |
| Zdroj: | Siddhant- A Journal of Decision Making. 14:283 |
| ISSN: | 2231-0657 2231-0649 |
| DOI: | 10.5958/2231-0657.2014.00531.x |
| Popis: | The purpose of this paper is to measure interdependency of declaring dividend by the companies that belong to the same industry. The researchers collect, compile and analyse publically available data like EPS, DPS and payout ratio of selected companies from the annual reports over the period 2004–2012. Descriptive as well as inferential statistical tools are used to arrive at any conclusion. The hypotheses are tested with 95% of significance level. The results suggest that the dividend decision is greatly influenced by the profitability of the firm as well as dividend of competitors. The study depends more on empirical procedures rather than a theoretical justification in the anomalies on the dividend policy. The research is totally based on publically available information and limited with regard to the time span and sample size. No holdout sample has been used and the entire data set is subjected to simple statistical analysis. This to some extent limits the findings and implications. Dividend decision is directly associated with the financing and investment decision and it becomes imperative of a firm to decide optimum dividend decision to the shareholders. This also makes a judicious balance between the retention and shareholders’ satisfaction. The present study concentrates on matters like: do the companies belonging to the same industry declare similar percentage of dividend and interdependent in declaring dividend? Does the growth rate fluctuate, when dividend is declared? Do the dividends declared by the companies differ significantly from one company to other? |
| Databáze: | OpenAIRE |
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