Dividend Payout Trends in Select Indian Companies: An Empirical Analysis

Abstract

The effect of liberalisation has led to the entry of foreign companies in the Indian market which in turn has widened the opportunity of making more choice to the investors. In this complex business situation, the companies may intend to retain its earnings for keeping their working capital intact to face downtrend in the market conditions. Alternatively, the companies may adopt aggressive dividend policy in order to attract investors having a wide choice of making investment. So, it is not an easy task for a company of designing its appropriate dividend policy. In this backdrop, the present study seeks to analyse the dividend payout trends in fifty selected companies in Indian corporate sector during the post liberalisation period of 1998-99 to 2007-08.