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The Impact of Dividend Policy on Shareholders Wealth




Dividend Paying Companies, Dividend Non-Paying Companies, DPS Dividend per Share, MPS-Market Price per Share


The present paper is gone for investigating the effect of dividend strategy of shareholders' riches in Organic and Inorganic Chemical Companies in India amid 2004 – 2005 to 2012-2013. To gauge the effect of dividend strategy on shareholders' riches different relapse techniques and stepwise relapse models are utilized by taking DPSit (Dividend per Share), RE it (Retained Earnings per Share), Pet-1 (Lagged Price Earning Ratio) and MPSit-1 (Lagged Market Price) (MVit-1) as free factor, and MPSit (Market Price Per Share) as needy factors. To decide the extent of clarified variety in the reliant variable, the co-proficient of assurance (R2) has been tried with the assistance of F esteem. The investigation demonstrates that the abundance of the shareholders is incredibly affected predominantly by five factors viz., Growth in deals, Improvement of Profit Margin, Capital Investment Decisions (both working capital and settled capital), Capital Structure Decisions, Cost of Capital (Dividend on Equity, Interest on Debt) and so on. There is a critical effect of dividend strategy on shareholders' riches in Organic Chemical Companies while the shareholders' riches is not impacted by dividend payout to the extent Inorganic Chemical Companies are concerned.

Other Details

Paper ID: IJSRDV5I60069
Published in: Volume : 5, Issue : 6
Publication Date: 01/09/2017
Page(s): 178-181

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