Impact of Dividend Pay-Out on Market Price of Share With Special Reference to Automobile Sector Companies Listed on NSE

6 Pages Posted: 9 Oct 2019

Date Written: October 3, 2019

Abstract

Many variables have an impact on the share’s market price such as Government policies, firm’s financial performance etc. This paper attempted to find out relationship between dividend pay-out and market price of the share. Financial manager must take three major decisions i.e. Financing decisions, Investment decisions and Dividend decisions. The third vital decision of a company is the volume of cash to be given to shareholders. Dividend policy includes the part of earnings given to shareholders in cash as dividends. This paper takes into consideration the automobile sector companies listed in NIFTY 50 for 10 years i.e. 2009 to 2018. It attempts to find out whether dividend decisions of the company affect its market price. Generally speaking shareholders expect a return from the company. After the analysis, the study concluded that there exists a robust relationship between dividend pay-out ratio and market value of certain companies and some companies had negative relationship.

Keywords: Dividend Payout P/E MPS NSE

Suggested Citation

Bajaja, Kanchan and Jain, Neha, Impact of Dividend Pay-Out on Market Price of Share With Special Reference to Automobile Sector Companies Listed on NSE (October 3, 2019). Proceedings of International Conference on Advancements in Computing & Management (ICACM) 2019. Available at SSRN: https://ssrn.com/abstract=3463676 or http://dx.doi.org/10.2139/ssrn.3463676

Kanchan Bajaja (Contact Author)

JIMS, Rohini ( email )

Rohini
Delhi, 110085
India

Neha Jain

JIMS, Rohini ( email )

Rohini
Delhi, 110085
India

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