Determinants of Dividend Policy: An Empirical Study of Non Financial Industries of PSU’s in India

Abstract

This research paper explores the determinants of dividends in case of PSU’s belonging to various industries. The analysis is based on 10-years data covering the period from 2012 to 2021. The review of literature indicates that the major determinants of dividend decision of a firm include primarily, retained earnings, quick ratio, debt to equity ratio, capital expenditure (capex), ROE,EPS, current earnings . The Multiple Linear Regression technique has been used in this study to find out the relationship of determinants of dividend with equity dividend. The study further revealed ROE, EPS, and current earnings are significant determinants and positively related with dividend decision. However, retained earnings and capital expenditure significant but have negative impact on dividend payments.