Determinants of corporate dividend policy in India: A dynamic panel data analysis

Title

Determinants of corporate dividend policy in India: A dynamic panel data analysis

Creator

Brahmaiah B.; Srinivasan P.; Sangeetha R.

Description

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. 2020 Allied Business Academies.

Source

Academy of Accounting and Financial Studies Journal, Vol-22, No. 2, pp. 1-13.

Date

2018-01-01

Publisher

Allied Business Academies

Subject

Determinants; Dividend policy; Dynamic panel data estimation; India

Coverage

Brahmaiah B., ICFAI Business School, India; Srinivasan P., Xavier Institute of Management and Entrepreneurship, India; Sangeetha R., Christ University, India

Rights

Restricted Access

Relation

ISSN: 10963685

Format

Online

Language

English

Type

Article

Identifier

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85074395581&partnerID=40&md5=966610d56611a462f84693d42a8adf9c