Demand and supply of dividend: A study on cement industries in India Chhatoi Biswajit Prasad Dr.1, Pattanayak Deepak2 1Asst. Professor, Centre for Management Studies, OEC, Bhubaneswar, Orissa, India 2Asst. Professor, Centre for Management Studies, OEC, Bhubaneswar, Orissa, India Online published on 20 March, 2021. Abstract Purpose: The purpose of this paper is to measure impact of profitability on dividend payment in select Cement companies in India. Design/methodology/approach: The researchers collect, compile and analyze publically available data. The data related to Earning per Share (EPS), Dividend per Share (DPS), and Dividend Payout Ratio (DPR) is collected from the annual reports over the period 2004 to 2012. Descriptive as well as inferential statistical tools are used to arrive at any conclusion. The hypotheses are tested with 95% of significance level. The results suggest that the dividend decision is greatly influenced by profitability of the firm. The study depends more on empirical procedures rather than a theoreticaljustification in the anomalies on dividend policy. The research is totally based on publically available information and limited with regard to the time span and sample size. No holdout sample has been used and the entire data set is subjected to simple statistical analysis. This to some extent limits the findings and implications. Dividend decision is directly associated to the financing and investment decision, it becomes imperative of a firm to decide optimum dividend decision to the shareholders. This also makes a judicious balance between the retention and shareholders’ satisfaction. The present study concentrates on matters like; do the companies belonging to the same industry declare similar percentage of dividend? Is the growth rate fluctuate, when dividend is declared? Do the dividends declared by the companies differ significantly from one company to other? Top Keywords Dividend, EPS, DPS and Dividend Payout Ratio. Top |