1.
Jyoti Rani
– Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana, India.
2.
Sangeeta Mittal
ID
– Assistant Professor, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana, India.
Abstract
The dividend decision is made after a thorough evaluation of various determinants. The current study has identified a set of 18 key determinants that affect the dividend policy of energy sector companies listed on the NSE from 2014 to 2024. A factor analysis approach was performed on the data to identify the notable factors. The suitability of the data for factor analysis was tested using Bartlett’s Test of Sphericity and the Kaiser-Meyer-Olkin measure of sample adequacy. A total of four factors were extracted through factor analysis. Then, multiple regression was used to determine the most crucial factors that affect the dividend policy of energy sector firms. The results conclude that mainly two factors, i.e., profitability ratios and liquidity and solvency ratios, were found to be positive and significant in determining the dividend policy. To protect the interest of investors, regulators and policymakers can encourage businesses to disclose profitability and liquidity ratios in a transparent manner.
Keywords Dividend Policy, Factor Analysis, Multiple Regression, Energy Sector
