Published Online:October 2024
Product Name:The IUP Journal of Applied Finance
Product Type:Article
Product Code:IJAF021024
Author Name:Durga Singh Gour and Shurveer Singh Bhanawat
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:19-29
To forecast the dividend payments for automobile sectors firms, a total of 13 companies were selected based on specified criteria. Data on financial variables for these firms was collected from their annual reports for FY 2015-16 to FY 2019-20. Through correlation analysis and t-tests, 11 significant financial variables were identified, which formed the basis for a regression-based dividend model developed using SPSS. For FY 2020-21 and 2021-22, the regression equation incorporated four independent variables, and there was no significant difference observed between the predicted and the actual dividend payment amount for both the years. This model is beneficial for investors in determining which stocks to invest in and for portfolio managers in optimizing the allocation. Further, it assists in assessing the overall sentiment of investors and companies, aiding in the crucial decision-making process.
The ultimate objective of an organization is to maximize its value to the owners and the shareholders. In the finance sector, companies’ dividend policies are a burning topic. For every finance manager, it is an extremely tough and important choice.