Sandeep Goel,  Management Development, Institute, Gurgaon. Haryana, INDIA

The present paper looks at the dividend policy of the top Indian companies with regard to its consistency and its effect on their market price. A period of five years, viz. 2006 to 2010 has been considered for analyzing the interrelationship between corporate dividend policy and its market value. The linear relationship has been found out between dividend decision and market price of the company, but for a limited duration. Thereafter the market starts behaving efficiently and absorbs the available information.

Keywords: dividend, dividend policy, market price, return, shareholders

Suggested citation: Goel, S.(2015). Dividend policy and market price behaviour in Indian companies. Skyline Business Journal, Volume  11,, No 1,pp 46-53.

Goel, S.(2015). Dividend policy and market price behaviour in Indian companies. Skyline Business Journal, Volume  11,, No 1,pp 46-53.