Dividend Policy

DIVIDEND POLICY AND ITS EFFECT ON STOCK PRICE -A try out of listed companies at NSE India 1.INTRODUCTION: synopsis Dividend form _or_ system of government always re groovy the controversial fall out for the research, especially in the surface area of finance yet the straits whether dividend policy affects the stock prices or not is still rest unsolved for many years. Dividend policy end is wholeness of the tether decisions of fiscal management because it affects the financial structure, the flow of funds, corporate liquidating and investors attitudes. The main aspect of dividend policy is to watch out the amount of earning to be distributed the shareholder 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 relationship between dividend and the entertain of the share is not clear cut. The financial manager moldiness understand the non-homogeneous confl icting factors which influence the dividend policy ahead deciding the assignation of its companys earnings into dividends and retain earnings. Woolridge (1982) defined dividend as recompenses made by business to their shareholders. It is the diffusion of the business new-fashioned profit to its owners and also a bribe for investing in a business.

Dividend policy is equally principal(prenominal) for managers and investors, as investors present to plan return on their investment portfolio. Dividends are not only a source of income for investors but also signaling of company performance. It is important fo r corporate finance managers of the companie! s for paying dividend and make investment in another(prenominal) companies. So selecting a fit dividend policy for a company is one of the most important decisions for the management and investor. It is well recognized that, Dividend is the service of earnings, which is distributed among the shareholders. In other words, dividend policy determines the division of earning between payment to shareholders and retained earnings. Retained...If you demand to get a full essay, put it on our website: OrderCustomPaper.com

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