An Empirical Analysis of Determinants of Dividend Policy of NSE Nifty Companies

The sight of this current research is to examine the probable association between dividend policy and its impacted factors like return on assets (ROA), tax rate, debt-equity ratio, institutional holdings and industry type. It is an attempt to elucidate association between dividend policy and above mentioned factors. The research was organized by taking a sample of 50 firms listed and traded under National Stock Exchange NIFTY index. The required information was obtained from the concerned company's financial statements available in their websites for the year 2017-18. Elucidation of data was done with the help of Karl Pearson's correlation coefficient, which measures the degree of association between the dividend amount and other variables with magnitude. The results of the study reveal that there is significant association between the dividend amount and return on equity, debt-equity ratio and institutional holdings. The study also reveals that there is no significant association between dividend amount and tax rate and type of industry it belongs to at 1% level of significance. The output is for the year 2017-18 only, the association between dividend paid and other selected variables affecting may change in the future