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Dividend Policy,[object Object],Comparison,[object Object]
Objective,[object Object],To know the cause and effect association between dividend decision and its determinants in Indian IT industry and cement industry. And also do a comparative analysis between the two.,[object Object]
Determinants of Dividend Policy,[object Object]
Profit After Tax,[object Object]
Lagged Dividend,[object Object]
Current Ratio,[object Object]
Debt Equity Ratio,[object Object]
Interest Payment,[object Object]
 Sales,[object Object]
Market Capitalization,[object Object]
Earning Per Share,[object Object]
Payout Ratio,[object Object]
Capital Expenditure,[object Object]
Methodology,[object Object],[object Object]
Correlation of various factors influencing dividend policy is done to identify degree of influence of different factors,[object Object]
Data was collected for a sample of 20 companies for both the sectors (IT industry and cement industry).
The sample includes the companies which have paid dividends over a major portion of the horizon of study.
 The period of study includes data from a period of 1995 to 2009,[object Object]
DESCRIPTIVE ANALYSISFOR IT INDUSTRY,[object Object]
FOR CEMENT INDUSTRY,[object Object]
COMPARATIVE ANALYSIS,[object Object],The first major observation that can be made for both the industries is the fairly constant payout ratio over a long period. Also the dividends paid in the IT industry have been fairly high as compared to that in cement industry owing to higher and more certain earnings.,[object Object]
CORRELATION FOR IT INDUSTRY,[object Object]
 CORRELATION FOR CEMENT INDUSTRY,[object Object]
COMPARATIVE ANALYSIS,[object Object],[object Object]

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Corporate Financel

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  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
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  • 16. Data was collected for a sample of 20 companies for both the sectors (IT industry and cement industry).
  • 17. The sample includes the companies which have paid dividends over a major portion of the horizon of study.
  • 18.
  • 19.
  • 20.
  • 21.
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  • 25. Sales and PAT are the most significant factors imparting dividend paying capacity to the firms.
  • 26. Since in the cement industry average Debt-equity ratio is higher, it has higher negative impact on dividend policy.
  • 27.
  • 28. But IT industry owing to higher earnings have distributed larger amount in the form of dividends while the cement industry has been more conservative in the approach.
  • 29. The factors impacting the dividend policy of the companies in both the sectors have been fairly same in the long term though the degree of influence has been different.
  • 30.