OBJECTIVES OF THE STUDY

The division of net earnings of a firm between dividend payments and retained earnings is a
major financial decision. If the principal objective of a corporate financial management is to
maximize the market value of equity shares, the question that naturally arises is: what is the
relationship between dividend policy and market price of equity shares? This is one of the most
controversial and unresolved questions in corporate finance.

The present study is basically focused on the following:

Nature and types of dividend polices

Determinants of dividend policy

Implementation of Dividend Models in the units concerned

Analytical study of the units

Impact of dividend policies on the share prices of the units concerned