Dividend Decisions of Chemical Industry in India

This paper seeks to analyse the dividend payout trends and discover the factors affecting dividend policy in chosen companies from the Indian Chemical Industry. While analyzing the dividend policy of the selected organizations, the Dividend Payout Ratio has been used as the indicator of the dividend policy adopted by the organizations under study. The current study measures the influence of various factors such as current ratio, Profitability, operating cash flow per share, Corporate Tax, Debt to Equity Ratio, Firm Size, Growth, Tangibility and Earning Volatility on the Dividend Payout Ratio. Regression analysis indicated that cash flow, current ratio, size, growth and tax have positive significant influence with dividend payout ratio while profitability, debt to equity ratio, earning volatility and tangibility have negative significant influence.