Vol. 4, Issue 6, Part E (2018)

Abstract
Purpose: The main objective of present paper is to review, classify, and identify the gaps in the existing literature on dividend policy. Design/methodology/approach: Frequency Distribution was used along with Compound Annual Growth Rate (CAGR) to study the trends and pattern of select variables. Independent t-test was used to study difference between pre and post-recession phase of the economy. Findings: Dividend per Share of sample companies indicated an increasing trend over the study period. The average DPS has increased initially, and thereafter shows decline trend. An analysis of distribution of sample companies according to amount of dividend per share shows that most of the companies through the study period paid up to Rs. 5. Approximately 15 percent companies’ paid dividend in the range of Rs.5 to Rs.10 and very few companies paid dividend more than Rs.35. The decline in growth rate of average DPS during post-recession phase may be due to more favorable investment opportunities persist during pre-recession period. The financial leverage was sound during pre-recession period but it declines during post-recession period. Most of companies comes into existence after 1990s and 90 percent companies were paying on an average 42 percent of corporate tax. Originality/value: Research papers on dividend policy applied advanced statistical and econometric for data analysis. This makes finings more intricate. To the best of the information, no other research paper has previously been published in any of academic journals using simplex statistical tools for data analysis.