An empirical investigation of relationship between dividend and price of shares of IT companies in globalization
Summary :
Table of Contents
- Abstract
- Introduction
- Case study of a company
- Objective
- Research methodology
- Findings and suggestions of the study
- Limitations of the study
- Conclusion
- Bibliography
Abstract
In the paper the researcher has tried to identify the relationship between the price of shares and dividend policy of companies operating in global competitive world. Therefore, the researcher has selected the most competitive and fastest growing industry of India which has given India the glory and proud throughout the world i.e. the Information Technology (IT) Industry. Indian IT Industry has capitalized its position in the Global IT Market by contributing significantly to Indian GDP and major proportion of Indian Export. The researcher has selected 10 IT- companies of India for the study purpose. The researcher has collected share prices of sample units for the period of two months - one month before and one month after declaring dividend for the year. The researcher has collected all the data from www.capitaline.com and www.bseindia.com. The researcher has used T-test and One way Analysis of Variance for analysis, interpretation and finding results. The researcher found on application of tests that dividends do affect the prices of shares in most companies and the effect of dividend is different in sampled companies i.e. the share do fluctuate with dividend declaration but not in the same proportion in all the companies.
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