Determinants of Dividend Payout Ratios-A Study of Indian Information Technology Sector.

Authors: Anil, Kanwal1 Kapoor, Sujata2 Source: International Research Journal of Finance & Economics. 2008, Issue 15, p63-71. 9p. 6 Charts, 1 Graph. Document Type: Article Subject Terms: *DIVIDENDS *INFORMATION technology *PROFITABILITY *STATISTICS Geographic Terms: INDIA Author-Supplied Keywords: determinants Dividends IT sector Abstract: Profitability has always been considered as a primary indicator of dividend payout ratio. There are numerous other factors other than profitability also that affect dividend decisions of an organization namely cash flows, corporate tax, sales growth and market to book value ratio. Available literature suggests that dividend payout ratio is positively related to profits, cash flows and it has inverse relationship with corporate taxes, sales growth and market to book value ratio. This paper is an attempt to empirically analyze the determinants of dividend payout ratio of Indian Information Technology sector. The paper also focuses on identifying whether various factors available as per literature influence dividend payout ratio in IT sector in India in existing scenario or not. Statistical techniques of correlation and regression have been used to explore the relationship between key variables. Thus, the main theme of this study is to identify the various factors that influence the dividend payout policy decisions of IT firms in India. [ABSTRACT FROM AUTHOR]

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1 2

Jaypee Business School, Noida, India Institute of Management Studies, Ghaziabad, India

ISSN: 14502887 Accession Number: 32926485 Database: Business Source Elite