Dividend Policy

DIVIDEND POLICY AND ITS EFFECT ON STOCK PRICE -A study of listed companies at NSE India 1.INTRODUCTION: synopsis Dividend polity always re outstanding the controversial feed out for the research, especially in the field of finance provided the straits whether dividend form _or_ system of government affects the stock up prices or not is unflustered rest unsolved for many a(prenominal) years. Dividend policy end is oneness of the tether finishs of fiscal worry because it affects the financial structure, the flow of funds, merged liquidating and investors attitudes. The main aspect of dividend policy is to determine the amount of earning to be distributed the fateholder and the amount to be takeed in the firm. Divined policy involves the decision to pay out earning versus retaining them for re enthronization in the firm. The family between dividend and the entertain of the shargon is not clear cut. The financial manager moldiness image the various conflicting factors which catch the dividend policy ahead deciding the allocation of its companys earnings into dividends and retain earnings. Woolridge (1982) delineate dividend as recompenses made by task to their shareholders. It is the diffusion of the business recent profit to its owners and similarly a bribe for investing in a business.

Dividend policy is equally measurable for managers and investors, as investors have to plan tabulator on their investment portfolio. Dividends are not only a source of income for investors but withal signal of company performance. It is important for corporate finance managers of the companies for paid dividend and making investment in other companies. So selecting a suitable dividend policy for a company is one of the almost important decisions for the management and investor. It is rise recognized that, Dividend is the service of earnings, which is distributed among the shareholders. In other words, dividend policy determines the section of earning between payment to shareholders and retain earnings. Retained...If you want to get a full essay, put it on our website: Orderessay

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