Dividend Policy

DIVIDEND POLICY AND ITS EFFECT ON STOCK PRICE -A lead of listed companies at NSE India 1.INTRODUCTION: synopsis Dividend policy always re neat the controversial fall out for the research, especially in the knowledge domain of finance yet the straits whether dividend policy affects the stock prices or non is still rest unsolved for many years. Dividend policy end is wholeness of the tether decisions of monetary management because it affects the financial structure, the flow of funds, corporate liquidating and investors attitudes. The main aspect of dividend policy is to sink 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 enthronement in the firm. The relationship between dividend and the entertain of the share is not clear cut. The financial manager moldiness understand the discordant conflicting factors which influence th e dividend policy ahead deciding the allotment 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 recent profit to its owners and also a bribe for investing in a business.

Dividend policy is equally authorised for managers and investors, as investors stir to plan return on their investment portfolio. Dividends are not only a source of income for investors but also suggest of company performance. It is important for corporate finance managers of the companies for paying d ividend and fashioning investment in other! companies. So selecting a able 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 motivation to get a full essay, put it on our website: OrderCustomPaper.com

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