Normal view MARC view ISBD view

Theories and Determinants of Dividend Behavior

By:

Sarma J V

Contributor(s):

Panda S P

Material type: Article

ArticleLanguage: ENG Series: ; IIPublication details: Jan 2005 0Edition: 1Description: 5-18 PpSubject(s):

Dividends

DDC classification:

Sar/Pan

Online resources:

Click here to access online

Summary: This paper attempts to give a brief overview of the important dividend theories and identify the factors that determine the dividend behavior in the corporate sector in India. For our analysis, we construct the optimal dividend equation in the form of exponential function. The optimal dividend function is then combined with a dynamic adjustment function to allow the partial adjustment of actual dividends to `desired' or `optimal' dividend in a given year. The empirical results show that, among the financial variables profits, capital structure, sales change and lagged dividend show significant results, whereas investment demand doesn't. This is because the estimates might be biased due to the presence of the lagged dependent variables as one of the explanatory variables.

Tags from this library: No tags from this library for this title. Log in to add tags.

Average rating: 0.0 (0 votes)

Holdings
Item type	Current library	Call number	Status	Date due	Barcode
Articles	Main Library	Sar/Pan (Browse shelf(Opens below))	Available		AR7046

Browsing Main Library shelves Close shelf browser (Hides shelf browser)

Previous	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	No cover image available	Next
Previous	Sar/Jai Condition your Organisation with Knowledge Management and Managerial Excellence	Sar/Jay New Find	SAR/JAY Reliance Strikes Gold	Sar/Pan Theories and Determinants of Dividend Behavior	Sar/Pat Managerial Effectiveness is Challenging Era	Sar/Raj Titan : The passage	Sar/Sha Result Oriented Higher Education: Ways and means to Achieve	Next

This paper attempts to give a brief overview of the important dividend theories and identify the factors that determine the dividend behavior in the corporate sector in India. For our analysis, we construct the optimal dividend equation in the form of exponential function. The optimal dividend function is then combined with a dynamic adjustment function to allow the partial adjustment of actual dividends to `desired' or `optimal' dividend in a given year. The empirical results show that, among the financial variables profits, capital structure, sales change and lagged dividend show significant results, whereas investment demand doesn't. This is because the estimates might be biased due to the presence of the lagged dependent variables as one of the explanatory variables.

There are no comments on this title.

to post a comment.