Impact of Dividend Policy on Firm Value with Special Reference to Financial Crisis

Hansda, S. and Sinha, A. and Bandopadhyay, K.(2020), Impact of Dividend Policy on Firm Value with Special Reference to Financial Crisis, SIT Journal of Management, 10(2), 158-175

18 Pages Posted: 22 Mar 2021

See all articles by Sourav Hansda

Sourav Hansda

affiliation not provided to SSRN

Abhijit Sinha

Vidyasagar University

Kalpataru Bandopadhyay

Vidyasagar University

Date Written: December 2020

Abstract

The present study explores the relationship between dividend policy and firm value with respect to financial crisis. The investigation is based on data of 500 companies listed on the BSE for the period 2001 to 2017. The dynamic panel regression with two-step system Generalised Method of Moments (GMM) is applied. The findings show that dividend policy does not affect firm value definitely. However, the study observes that financial crisis impacted the relationship between dividend behaviour and firm value. Furthermore, the higher dividend yield in post crisis period may indicate evidences of signalling hypothesis.

Keywords: Dividend; Tobin’s Q, interactive term, dynamic panel, system GMM, Dividend Payout, Dividend Policy in India, dividend yield, signalling effect, signalling hypotheis in dividend

JEL Classification: G32, G35

Suggested Citation

Hansda, Sourav and Sinha, Abhijit and Bandopadhyay, Kalpataru, Impact of Dividend Policy on Firm Value with Special Reference to Financial Crisis (December 2020). Hansda, S. and Sinha, A. and Bandopadhyay, K.(2020), Impact of Dividend Policy on Firm Value with Special Reference to Financial Crisis, SIT Journal of Management, 10(2), 158-175, Available at SSRN: https://ssrn.com/abstract=3801395

Sourav Hansda

affiliation not provided to SSRN

Abhijit Sinha

Vidyasagar University

Sonar Kella Apartment , Flat A-3
Midnapore, West Bengal 721102
India

Kalpataru Bandopadhyay (Contact Author)

Vidyasagar University ( email )

Department of Commerce, Vidyasagar University, Wes
Midnapur, West Bengal 721102
India
9434665183 (Phone)

HOME PAGE: http://vidyasagar.ac.in/Faculty/Profile?fac_u_id=Fac-COM-59

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