A Study of Determinants of Dividend policy with special reference to Selected Automobiles Companies listed on BSE

Abstract

The distribution of a portion of profit to shareholders is known as dividend. The dividend policy of a company is an important aspect as it affects many stakeholders of the company. The aim of the present study to examine the determinants of dividend policy of selected automobiles companies listed on Bombay Stock Exchange [BSE]. To achieve the purpose of the study, ten automobiles companies are selected and the data of last five years i.e. from 2014-15 to 2018-19 are analyzed by applying multiple regression analysis by using SPSS software. The study is based on secondary data. In this study Dividend per Share [DPS] and Dividend Payouts [DPO] are taken as dependent variables while financial factors like leverage, liquidity, ROE, EPS, PE and firm’s size are taken as independent variables. The study reveals that ROE, EPS, liquidity, leverage and EPS have significant impact on dividend payouts of the selected companies. The variables PE and firm’s size have no impact on dividend payouts of the selected companies.