VOLUME - 6, ISSUE – 2, JULY.TO DEC,2020 ISSN NO. : 2455-4642 (ONLINE)
IDEES –International Multidisciplinary Research Journal
(Peer Reviewed)
A Research Paper
on
Determinants of Dividend in Indian Pharmaceutical Industry - A Study
of Selected Pharmaceutical Companies in India
By
Mr. Kaushikkumar R. Dalvi,
(P.hd. Scholar, Commerce, VNSGU Surat and faculty of Department of Commerce &
Management, KSKV Kachchh University, Bhuj, Gujarat, India)
and
Dr. Ashish K. Desai
( I/C Principal,D. R. Patel & R. B. Patel Commerce College & B. C. Patel B.B.A.
Bharthana (Vesu), Surat , Gujarat, India)
ABSTRACT:
This article examined the determinants of the dividend of Pharmaceuticals companies in
India listed on Bombay Stock Exchange. Dividend policy is influenced by a number of
determinants of dividend. The payment of dividend is connected with profitability
position of the firm and is influenced by internal and external factors. Profitability has
every time considered as a primary indicator of dividend pay-out ratio. There are various
other factors other than profitability also that affect dividend decisions of an organization
that is cash flows, sales growth, corporate tax and market to book value ratio. Existing
literature recommends that dividend pay-out ratio is positively related to profits, cash
flows and it has inverse relationship with corporate taxes, sales growth and market to
book value ratio. The present study focuses on the determinants of dividends and its
performance of selected pharmaceutical companies in India. This study calculates the
performance of various pharmaceutical companies and their annual compound growth
rate.
Keywords: Dividend, Determinants, Pharmaceutical companies, Growth rate.
INTRODUCTION:
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