1. Dividend Policy Comparison

2. Objective To know the cause and effect association between dividend decision and its determinants in Indian IT industry and cement industry. And also do a comparative analysis between the two.

3. Determinants of Dividend Policy

4. Profit After Tax

5. Lagged Dividend

6. Current Ratio

7. Debt Equity Ratio

8. Interest Payment

9. Sales

10. Market Capitalization

11. Earning Per Share

12. Payout Ratio

13. Capital Expenditure

16. Data was collected for a sample of 20 companies for both the sectors (IT industry and cement industry).

17. The sample includes the companies which have paid dividends over a major portion of the horizon of study.

19. DESCRIPTIVE ANALYSISFOR IT INDUSTRY

20. FOR CEMENT INDUSTRY

21. COMPARATIVE ANALYSIS The first major observation that can be made for both the industries is the fairly constant payout ratio over a long period. Also the dividends paid in the IT industry have been fairly high as compared to that in cement industry owing to higher and more certain earnings.

22. CORRELATION FOR IT INDUSTRY

23. CORRELATION FOR CEMENT INDUSTRY

25. Sales and PAT are the most significant factors imparting dividend paying capacity to the firms.

26. Since in the cement industry average Debt-equity ratio is higher, it has higher negative impact on dividend policy.

28. But IT industry owing to higher earnings have distributed larger amount in the form of dividends while the cement industry has been more conservative in the approach.

29. The factors impacting the dividend policy of the companies in both the sectors have been fairly same in the long term though the degree of influence has been different.