Published: 10 May 2022| Version 1 | DOI: 10.17632/7rg89sk432.1
Time's Journey A Refereed Journal,


Some of the researchers advise that the shareholders can sell whenever they required the amount or fund. However, this is the dividend irrelevance theory which determines that dividend payments negligibly or inferiorly influence a stock’s price as well. Practically, it is an earning for investors in spite of having the recommendation that dividend policy is irrelevant or insignificant. In fact sometime, the firm executives are also the biggest investors and have the most to achieve from a liberal dividend policy or plan. Generally, most of the institutions or firms opine the dividend policy as a constitutive portion of their corporate technique. In this case, the authority has to ascertain on the dividend ratio, timing and miscellaneous factors which affect dividend payments very much. Merely, there are three kinds of dividend policies like the residual dividend policy, the stable dividend policy and the constant dividend policy respectively. For instance, Kinder Morgan reverberated the investment universe while in the year of 2015 they exclude their dividend payment by 75 percent which was a step that operate the share value container. Despite that, many investors construct the firm on strong base and creating sound economical pronouncements because of their future. Here, the firm’s exclusion of dividend virtually performed in their act of kindness and six month later Kinder Morgan observed its share value increment near about 25 percent. At the beginning of 2019, the firm again increased its dividend payment by 25 percent, a step which assisted to revitalize or reexhilarate shareholder’s reliability to energize the firm. The share price movement with the dividend pay-outs as related to dividend policy has been minutely observed here throughout the study. The secondary data required for the proposed study have been drawn from the Ace Equity (Accord Fintech Pvt. Ltd.), Centre for Monitoring Indian Economy (CMIE) database, company annual reports, stock exchange publications, and RBI annual reports as usually. Additionally, the proposed samples have been drawn from the list of the firms incorporated with the leading stock exchanges of India such as the Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE), Calcutta Stock Exchange (CSE), Metropolitan Stock Exchange, India International Exchange, NSE International Exchange, National Commodity & Derivatives Exchange, Multi Commodity Exchange, Indian Commodity Exchange, etc to get a well-diversified index that closely approximates the market portfolio.



Netaji Subhas Open University, Institute of Management Study


Investment Decision, Investors, Dividend Policy