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137 b
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Dividend policy of a firm affects both the long-term financing and the wealth of shareholders. As a result, the firm s decision to pay dividends must be reached in such a manner so as to equitably apportion the distributed profits and retained earnings. Since dividend is a right of shareholders to participate in the profits and surplus of the company for their investment in the share capital of the company, they should receive fair amount of the profits. The company should, therefore, distribute a reasonable amount as dividends (which should include a normal rate of interest plus a return for the risks assumed) to its members and retain the rest for its growth and survival. In the present study made an attempt to study on the analysis of corporate dividend behaviour in selected companies in India. I shall consider my work more than amply rewarded if this proves of any help to the students, scholars, policy makers and teachers in the field of financial management and especially to the investors.
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