AN EMPIRICAL ANALYSIS OF FACTORS AFFECTING THE DIVIDEND PAYOUTS OF THE PHARMACEUTICAL INDUSTRY: EVIDENCE FROM THE NSE, INDIA

Deciding about dividend payout ratio is a very important decision, that a company has to face. Examining factors that affects dividend payouts, helps company in making correct decisions related to dividend. This article examined the pre -determined factors which affect the dividend payouts of 10 Pharmaceuticals companies which are listed on the NSE, India. This study covered the period of 2019-2020. From the previous studies, factors identified were, profitability, sales growth, tax, cash flows and debt. In this study, panel data method is used because researcher's data consists of both cross sectional and the time series data, and to verify this F- Limer has been used. T-statistics, probability and coefficient has also been calculated to study the Impact. The result showed that factors profitability and cash flows have negative impact on dividend payouts. While, the factor debt has positive impact on dividend payouts. Other factors such as tax and sales growth did not have any impact on profitability ratio