Impact Of dividend decision on the market capitalization of the firm: Evidence from Indian large cap companies
Parul Institute of Commerce, Parul University, India.
Research Article
World Journal of Advanced Research and Reviews, 2023, 18(01), 758–761
Article DOI: 10.30574/wjarr.2023.18.1.0639
Publication history:
Received on 04 March 2023; revised on 12 April 2023; accepted on 15 April 2023
Abstract:
The percentage of the profit distributed to the shareholders is known as the dividend. The decision at hand is how much of the company's profit should be divided to the shareholders after taxes have been paid. It also contains the portion of the profit that needs to be invested back into the company. The retained earnings boost the company's potential for future earnings when the present income is reinvested. The amount of retained earnings has an impact on the company's choice of financing as well. The decision to declare a dividend should be made with the goal of maximizing shareholder value in mind. The present study attempted to evaluate the impact of dividend decision on the market capitalization using regression model. The regression analysis model revealed the significant impact of the independent variable on the market price of the share as well as the dividend policy determinants on the subsequent market price variable.
Keywords:
Dividend Decision; Market Capitalization; Earnings per Share; Dividend per Share
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