Dividend policy and its impact on the share price: an empirical study with reference to nationalized banks in India

This paper examines the impact of dividend policy on market price per share and share price volatility based on pooled cross-sectional analysis of secondary data of four Nationalized banks of India with 24 observations for the period of 2014-15 accounting year to 2019-20 accounting year as the sample size. The quantitative analysis will be done based on secondary data with respect to market price per share and share price volatility are selected as the dependent variables for this study. Earnings per share, retained ratio, dividend pay-out ratio and dividend yield ratio are the explanatory variables are taken into account for detailed analysis of the study. Return on equity, profit after tax, liquidity, growth of total assets, size of total assets and leverage are used as the control variables. The secondary data will be collected from the supervision report of Reserve Bank of India and annual reports of four Nationalised Banks in India. Different published articles, reports and concerned banks in some cases. The multiple regression models are applied to test the significance and impact of dividend policy on market price per share listed in the Bombay Stock Exchange Board and National Stock Exchange.