“Determinants Of Dividend Policy And Its Impact On Shareholders Wealth Creation Of Selected Public And Private Sector Companies In India”.

Abstract

A company can use its profits in two different ways. First, the company can decide to reinvest the profits in the company for growth and development, and second, distribute the profits among the shareholders. Distribution of money to shareholders takes two forms: one is a  share buyback and the other is a dividend. In financial management, dividend should be defined as part of the income compensated to the company and its shareholders. A uniform distribution of dividends can help companies in many ways, such as improving the position  of the company, attracting a wider range of potential investors, bringing investor confidence, especially in unstable market conditions. This study focuses on the impact of dividend decision on shareholder wealth for Indian Banking companies. Banking companies have an important role to play in raising India to the international level. Thus, the paper adds to the existing body of knowledge by focusing on the impact of dividend policy on the stock market price of Indian Banking companies. To achieve the objectives, a sample of 4 banking companies which are listed on the NSE will be collected for the study during the five-year period 2019-2023. The result of the study shows that the dividend decision has a positive effect Dividends per share on banking companies.