DETERMINANTS OF CORPORATE DIVIDEND POLICY IN INDIA: A DYNAMIC PANEL DATA ANALYSIS

The present study empirically examines the determinants of dividend policy of National Stock Exchange (NSE) listed firms in India, using dynamic panel data model for the sample of 95 NSE listed firms with continuous dividend payments from 2012/2013 to 2017/2018. The empirical results reveal that pro...

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Veröffentlicht in:Academy of Accounting and Financial Studies journal 2018-04, Vol.22 (2), p.1-13
Hauptverfasser: Brahmaiah, B, Srinivasan, Palamalai, Sangeetha, R
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Sprache:eng
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Zusammenfassung:The present study empirically examines the determinants of dividend policy of National Stock Exchange (NSE) listed firms in India, using dynamic panel data model for the sample of 95 NSE listed firms with continuous dividend payments from 2012/2013 to 2017/2018. The empirical results reveal that profitability, liquidity, leverage, risk, size of the firm and inflation are the major determinants of dividend policy of selected NSE listed firms in India. Findings deduced from empirical evidence bears testimony to the fact that profitability, liquidity, size of the firm and inflation have significant negative impact on dividend policy of the selected NSE firms covered by the study. These findings seem contradictory to the expected outcome contained in the existing literature on the Indian context. The risk variable tends to have negative and significant impact, which is line with the existing literature. Besides, the lagged dividend, investment opportunities, taxation and yield curve do not play significant role in determining the dividend policy.
ISSN:1096-3685