Determinants of Dividend Policy: Evidence from Indian Pharma Sector

In the present research paper, the financial statements of 15 Indian pharm a firms have been analyzed to gauge the impact of the firm’s characteristics on the dividend policy of the given firms. The researcher has identified some of the important firm’s characteristics like Earnings Per Share, Dividend Per Share, Current Ratio, Quick Ratio, and Firm Size which affect the dividend policy of a firm. The factors influencing dividend policy have been studied using correlation matrices, Housman test and panel data analysis. The outcomes of the correlation matrix exhibited that there is insignificant correlation between DPR and CR, QR, and firm size. According to the results of the pooled ordinary least square model, DPR is unaffected by EPS, DPS, CR, QR, and firm size. According to the outcomes of the random effect model, the firm size, EPS, DPS, CR, and QR had insignificant on DPR.