Dividend Policy

DIVIDEND POLICY AND ITS EFFECT ON STOCK PRICE -A sphere of listed companies at NSE India 1.INTRODUCTION: synopsis Dividend constitution always re bully the controversial fall out for the research, especially in the celestial orbit 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 even up 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 coronation in the firm. The relationship between dividend and the entertain of the share is not clear cut. The financial manager moldiness understand the divers(a) conflicting factors which influenc e the 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 youthful profit to its owners and also a bribe for investing in a business.

Dividend policy is equally big for managers and investors, as investors direct to plan return on their investment portfolio. Dividends are not only a source of income for investors but also bode of company performance. It is important for corporate finance managers of the companies for paying div idend and qualification investment in earl! y(a) companies. So selecting a suitable 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 require to get a full essay, put it on our website: OrderCustomPaper.com

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