Sanjay Tupe


In the present study, we use aggregate data compiled by Reserve Bank of India on corporate public limited firms for the period 1991-2012. After confirming unit root test of each variable, we run OLS regression. Lot of volatility in the dividend payout ratio of the Indian firms is seen for the period under study. Leverage, interest and tax provisions are the major determinants of dividend payout in India. Besides this, sales growth and profit to net worth are not the significant determinants of dividend but their coefficient signs are correct in the present model. Results appeared from OLS regression are acceptable and are matching with earlier studies on Indian corporate sector firms and firms in other counties.


JEL: G3; G35; G38


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dividend, India, OLS, unit root, leverage

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