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Dividend Policy Decision: Panel Data Analysis for Selected Cement Companies in India

Journal of Commerce and Accounting Research

Volume 8 Issue 4

Published: 2019
Author(s) Name: Sanjay Bhayani, Butalal Ajmera | Author(s) Affiliation: Prof. and Head, Former Dean, Dept. of Business Mgt. M.B.A. Programme, Saurashtra Univ., Gujarat.
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Abstract

In this paper researcher has tried to study the dividend policy decision of selected cement companies in India. Secondary data have been used. Study period was of five year from 2014 -2015to 2018-2019. Researcher identified important variables like DPR, EPS, DPS, CR, QR and Firm size for dividend policy. Multiple correlation matrix and penal data analysis techniques have been used to study determinates of dividend policy. Hausman test has also been used to select between random effect model and fixed effect model. Hausman test suggested that random effect mode is appropriate. Result of correlation matrix suggested that DPR is insignificantly correlated with CR, QR and firm size. Result of Pooled Ordinary Least Square Model indicates that EPS, DPS, CR, QR and Firm size are insignificant to DPR. The result of Random effect model shows that EPS, DPS, CR, QR and Firm size have also been insignificant to DPR.

Keywords: Dividend Policy, Earning, Liquidity and Firm Size

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