A Review Study on Relationship between Dividend Policy and Share Prices of Indian Companies
Keywords:
Dividend Policy, Stock Prices, Dividend AnnouncementsAbstract
The relationship between a company's dividend policy and its share prices is a subject of enduring interest for investors, financial analysts, and researchers. This review study delves into this relationship within the specific context of Indian companies, aiming to provide a comprehensive overview of the existing literature, theories, and empirical evidence on how dividend policy influences share prices in the Indian corporate landscape. The research encompasses an extensive analysis of peer-reviewed journals, academic papers, and empirical studies that have explored the intricacies of dividend policy and its potential impact on the valuation and behavior of shares in the Indian stock market. The study takes into account a broad range of factors such as corporate governance, investor preferences, regulatory framework, and macroeconomic conditions to understand the dynamics at play. Key findings from the review indicate that the relationship between dividend policy and share prices is complex and multifaceted. Indian companies exhibit a diverse range of dividend practices, influenced by various internal and external factors. This review study contributes to the existing body of knowledge by providing a comprehensive overview of the relationship between dividend policy and share prices in the context of Indian companies.
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References
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