A DIVIDEND POLICY OF LISTED INFORMATION TECHNOLOGY COMPANIES IN INDIA
Abstract
This study will examine the connection between dividend policy and the bottom lines of Indian IT firms whose shares trade on the Bombay Stock Exchange. One of the factors used to determine which companies would take part in the study was the amount of their market capitalization. We verified our assumptions by employing a correlation matrix and a panel regression model. The most significant finding from this study is that the investigated companies do not have a stable track record of dividend payments and that the Price Earnings Ratio (PER) has only a slightly positive association with the Dividend Payout Ratio (DPR). You should keep in mind the connections between ROE and ROA. By showing that dividend policies are highly sensitive to the profitability of individual businesses, the random effect model passes the Hausman test with flying colors. Dividend policy formulation is a complex part of any organization's financial management. The results of the research will help all relevant parties have a deeper familiarity with dividend policy.
Keywords
Dividend policy, dividend payout ratio, dividend yield, dividend policy theory, and information technology are all terms used to describe dividends.