TO ANALYSE THE RELATION BETWEEN FINANCIAL PERFORMANCE AND DIVIDEND POLICY

Abstract

This study aims to determine the impact of dividend policy on the profitability of Indian companies listed on the Bombay Stock Exchange (BSE). The financial markets are said to play a critical and significant role in the economy, as they are the key means of communication between firms and accounting information users. The economic development of a country is aided by investors mobilising funds and putting them into investments. This provides the economy with a solid base. Companies have been forced to hunt for patterns and procedures that will allow them to maintain respectable performance levels, particularly in financial performance, as a result of recent economic and financial changes. A lot of academics have looked into financial decisions aimed at increasing the value of a company, including not only the distribution of earnings to shareholders but also the risky positions. Dividend policy is still regarded as a difficult area of corporate finance. As a result, this research study will aid stakeholders in better understanding dividend policy. For this study, the researcher chose three cement businesses to examine the relationship between financial success and dividend policy.