DIVIDEND POLICY AND STAKEHOLDERS’ VALUE: VARIOUS THOUGHTS AND KEY DETERMINANTS
The paper outlines the various thoughts of dividend policy and their impacts on the stakeholder’s value. The methodology is a mix of both empirical and explorative in nature. In one hand some simple questions were asked to the experts whether dividend pay-out has any role in the stock market or not and if yes then does it positively react in the stock market or does it have any negative role in the stock market. One the other hand the existing principles were being discussed to relate with the present experts’/ stock analysts’ opinions those who are dealing with the present stock markets or having some knowledge about the stock market. It has been observed in different studies that dividend announcement has significant role in the market capitalization of the firm. The state policies, declaration of budget, corporate tax pattern, tax on income and tax on capital gain also the reasons for variation of stock prices and declaration of dividend. It is an issue of interest in financial literature since joint stock companies came into existence. Since then, the area of corporate dividend policy draws attention to various academics, scholars, economists and even modern management too culminating into theoretical modelling and empirical examination. Numerous academics, adopting either a behavioural or empirical approach, have provided rationales to address the issue of why companies pay dividends and whether the market response to the announcements can be predicted. It will examine various factors affecting dividend policy and their impact on stakeholders’ value. For theoretical and conceptual work, has been depended on the available literature on this field in the form of books and research publications, company annual reports, important journals etc.