Dividend Determinants of Energy Industry Thirumagal P.G.1, Vasantha S.2 1Assistant Professor School of Management studies, Vels Institute of Science, Technology and Advanced Studies (VISTAS), Chennai 2Professor, School of Management studies, Vels Institute of Science, Technology and Advanced Studies (VISTAS), Chennai Online published on 16 March, 2018. Abstract Background Dividend policy is the percentage of earnings to be distributed as earnings and percentage of earnings to be retained by the firm. The study used fifteen years data from 2001 to 2015 for fifteen companies of Energy industry to identify the determinants of dividend payout ratio. Ordianry least square (OLS) was used in the analysis using Eviews 7 software. Result Leverage, past dividend, Agency cost, Profitability, Tangibility and Taxation were the major determinants of dividend for Energy industry. R2 was estimated as 0.5783 which was 57.83% indicates that 57.83% of the variation in DPR could be explained by the variation in the independent variables together. F statistics was significant at 1% level of significance indicated that the model could be generalized for all the companies of Energy industry. Conclusion The ratio of dividend payout had negative impact on the leverage and profitability of the companies in Energy industry (Pecking order hypothesis). Top Keywords Dividend payout ratio, factors, Debt equity, Profitability, Pecking order hypothesis. Top |