Hitesh Sip Final

A
PROJECT STUDY REPORT

ON
“Dividend Announcement Effect on Share price”
Submitted towards the partial fulfilment of the requirement of

MBA (Full-Time) Programme
Subject:
SUBMITTED BY:
SHARMA HITESHKUMAR UMASHANKAR
UNDER THE GUIDANCE OF
(DR. NAMRATA KHATRI)
G. H. Bhakta Management Academy
DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

VEER NARMAD SOUTH GUJARAT UNIVERSITY
SURAT
May 2022
1
DECLARATION
I, the undersigned ______________________________________, student of MBA
(2 year Full-time) programme at the Department of Business &
Industrial Management, Veer Narmad South Gujarat University, Surat
, hereby declare that the work reported by me in this report titled
“DIVIDEND ANNOUNCEMENT EFFECT ON SHARE PRICES” is original
and fully an outcome of the Summer Internship project work carried
out by me under the supervision of “Mrs. Ruchi Desai” at the
Sharekhan by BNP Paribas” during the period “2nd May to 18th June”.
I also declare that the secondary sources of information have been
duly acknowledged wherever used.
Further, I would like to declare that this report has not been
submitted to any other University or institute for the award of any
degree or diploma.
Place: Surat
Date:
SHARMA HITESHKUMAR UMASHANKAR
Department of Business and Industrial Management,
Veer Narmad South Gujarat University, Surat.
2
Department of Business & Industrial Management
Veer Narmad South Gujarat University,
Surat
Certificate
This is to certify that the Project Study Report titled “DIVIDEND

ANNOUNCEMENT EFFECT ON SHARE PRICES” submitted by SHARMA
HITESHKUMAR UMASHANKAR is a record of the work carried out under my
guidance and supervision for the subject “Project Study in MBA (Full-time) Sem-2
To the best of my knowledge, this report has not been submitted to any other
university of institute for any degree or diploma award.
DR. NAMRATA KHATRI
Department of Business and Industrial Management

Veer Narmad South Gujarat University
Surat – 395007, Gujarat, India
________________
Professor & Head

Department of Business and Industrial Management
Veer Narmad South Gujarat University,
Surat – 395007, Gujarat, India.
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EXECUTIVE SUMMERY
Here, The researcher has made research report on “dividend announcement

effect on share price” of companies with respect to banking sector”.
In chapter 1. The researcher has general overview about Impact of Dividend

Policy on Share Price of Companies. In this chapter included Introduction of
dividend, history of dividend.
In chapter 2. The researcher has study about banking sector. In this chapter
include definition of banking, impact of bank and computer software sector.
In chapter 3. The researcher has study on these 5 banks which are ICIC BANK,
YES BANK, HDFC BANK, KOTAK BANK, INDUSIND BANK and 5 computer
software which are TCS, INFOSYS, TECH MACHINE, WIPRO and HCL.
In chapter 4, The researcher has included Theoretical framework. In this

chapter included meaning of dividend, dividend policy variable, types of
dividend, factors affecting of dividend policy.
In chapter 5, The researcher has included literature review of this topic, what
are the researcher made before this research and what they found and
concluded in their research reports.
In chapter 6, The researcher has included research methodology in which

states the need for the research that is the problem for which research is been
made, objective of research, research design, sources of data, data collection
method, sample size and design, data analysis and the limitation for the study.
In chapter 7, The researcher has included data analysis and interpretation. In

this research I have used table and method for data analysis which shows
share price and dividend of company.
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TABLE OF CONTENTS
SR. TOPIC PAGE
NO. NO.
TITLE PAGE
DECLARATION 2
COLLAGE CERTIFICATE 3
EXECUTIVE SUMMERY 4
TABLE OF CONTENT
01 INTRODUCTION 6
1.1 COMPANY PROFILE 7
1.2 INDUSTRY PROFILE 17

1.3 THEORITICAL FRAMEWORK 30
02 LITERATURE REVIEW 38
03 RESEARCH METHODOLOGY 42
04 DATA ANALYSIS 46
4.1 FINDINGS & LEARNING 66
05 CONCLUSION 68
BIBLIOGRAPHY 70
APPENDIX 71
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CHAPTER: 1
INTRODUCTION
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1.1 Company profile:
INTRODUCTION OF ‘SHAREKHAN’BY BNP PARIBAS
BNP Paribas:
BNP Paribas has been in India since 1860 and is among the leading international financial
institutions providing a wide range of financial services covering corporate & institutional
banking, and personal investment services for individuals.
BNP Paribas has more than 11000 employees in India across its various lines of business and
its Technology and Operations global delivery centers in Bengaluru, Chennai and Mumbai.
As the second oldest foreign bank in India, BNP Paribas has branches in key metros and has a
rich and broad offering across the entire range of corporate and institutional banking products
and services, covering flow banking (transaction banking), financing, hedging, global markets,
derivatives and investments.
Sharekhan, a wholly owned subsidiary of BNP Paribas, provides personal investment services
to Individuals and has over 3000 centres across 540+ cities in India.
Following our ethos on having a positive impact on our stakeholders and society, BNP Paribas
India Foundation, a not-for-profit organization, deploys BNP Paribas’ CSR efforts in critical areas
including education, youth skilling, culture and environment.
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PROFILE OF THE COMPANY
 Name of the Company:- Sharekhan by BNP PARIBAS
 Year of Establishment: 1925
 Headquarter:- Sharekhan SSKI A-206 Phoenix House

Phoenix Mills Compound Lower
Parel Mumbai - Maharashtra,
INDIA-400013
 Nature of Business :- Service Provider
 Number of Employees :-Over 4500+
 Revenue:- Data Not Available
 Website:- www.sharekhan.com
 Slogan:- Your Guide to The Financial Jungle.
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VISION
To be the best retail brokering Brand in the retail business of stock market.
MISSION
To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.
Sharekhan is infect -
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the
country serving more than 7,00,000 clients.
REASON TO CHOOSE SHAREKHAN

LIMITED
Experience:
SSKI has more than eight decades of trust and credibility in the Indian stock
market. In the Asia Money broker's poll held recently, SSKI won the 'India's Best
Broking House for 2004' award. Ever since it launched Sharekhan as its retail
broking division in February 2000, it has been providing institutional-level
research and broking services to individual investors.
Technology:
With its online trading account one can buy and sell shares in an instant from
any PC with an internet connection. One can get access to its powerful online
trading tools that will help him take complete control over his investment in
shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

investors. These services are accessible through its centers across the country
over the internet (through the website www.sharekhan.com) as well as over the
Voice Tool.
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Knowledge
In a business where the right information at the right time can translate into
direct profits, one can get access to a wide range of information on Sharekhan
limited’s content-rich portal. One can also get a useful set of knowledge-based
tools that will empower him to take informed decisions.
Convenience
One can call its Dial-N-Trade number to get investment advice and execute
his transactions. Sharekhan ltd. have a dedicated call-centre to provide this
service via a Toll Free Number 1800-22-7500 & 1800-22-7050 from
anywhere in India.
Customer Service
Sharekhan limited’s customer service team will assist one for any help that one
may require relating to transactions, billing, demat and other queries. Its
customer service can be contacted via a toll-free number, email or live chat on
www.sharekhan.com .
Investment Advice
Sharekhan has dedicated research teams of more than 30 people for

fundamental and technical researches. Its analysts constantly track the pulse of
the market and provide timely investment advice to its clients in the form of
daily research emails, online chat, printed reports and SMS on their mobile
phone.
JOB RESPONSIBILITIES :
 To visit to various investors and get their review about sharekhan services and also
understand concept of equity market.
 Making people aware about new facilities of sharekhan in terms of online trading in
equity market.
 To guide investors for opening up of various accounts like equity, commodity,
demat etc. and collect payment from them.
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Sharekhan offers 3 popular trading software for online trading:
1. Sharekhan Website ( Trading Website)
2. Sharekhan App (Mobile Trading App)
3. Trade Tiger (Downloadable Trading Software)
Introduction to the Indian stock market
A stock market, equity market or share market is the aggregation of buyers

and sellers of stocks, which represent ownership claims on businesses; these
may include securities listed on a public stock exchange as well as those only
traded privately. Examples of the latter include shares of private companies
which are sold to investors through equity crowd funding platforms. Stock
exchanges list shares of common equity as well as other security types, e.g.
corporate bonds and convertible bonds.
About SEBI:
The securities and exchange board of India(SEBI) was established in 1998 but
was only given regulatory powers on April 12, 1992, through the securities and
Exchange Board of India Act, 1992. Its plays a key role in ensuring the stability
of the financial markets in India, by attracting foreign markets in India. Its
headquarters is located at the BandraKurla Complex Business District founded
in Mumbai. It’s also has northern, eastern, southern and western regional
offices.
SEBI’s management is composed of its own members. Its management team

consists of a chairman nominated by the union Government of India, two
members who are officers from the Union Finance Ministry, one member from
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the Reserve Bank of India and other five members who are also nominated by
the Union Government of India.
History of BSE:
Bombay Stock Exchange (BSE), now known as ‘BSE Limited’, is the oldest
stock exchange in the entire Asia. It is located in the PhirozeJeejeebhoy
Towers, Dalal Street in fort and has the largest number of companies of the
world listed on it. As of December 2011, the equity market capitalization of the
The history of BSE can be traced back to 1850s when a group of five stock
brokers used to conduct meetings under the banyan tree in front of Mumbai
Town Hall. As the numbers of the brokers increased, they started changing the
venue of the meeting constantly. Almost two decades later, this small group
moved to the Dalal Street in 1874, and the later, in the following year, it was
recognized as an official organization by the name ‘The Native share & stock
Brokers Association’. As per the Securities contracts Regulations Act, BSE
become the first stock exchange to be recognized by the government of India in
1956. BSE Sensex was developed in 1986 which was considered a tool to
measure the overall performance of BSE. Using this index, various equity
derivative markets were open and many future led to expansion of its trading
platform. BSE switched to electronic trading system in 1995 and took only 50
days transition. ‘BOLT’ or the ‘BSE on line trading’ is the automated version of
the trading platform, which is screen based and also currently has a capacity
of 8 million orders per day. Also, BSE is the first stock Exchange in the world
to introduce centralized internet trading system, allowing investors from all
over the world to trade on the BSE platform.
History of NSE:
The National Stock Exchange of India Limited (NSE) is the leading Stock
exchange of India, located in Mumbai. The NSE was established in 1992 as the
first demutualized electronic exchange in the country. NSE was the first
exchange in the country to provide a modern, fully automated screen-based
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electronic trading system which offered easy trading facility to the investors
spread across the length and breadth of the country.
National Stock Exchange has a total market capitalization of more than

US$1.41 trillion, making it the world’s 12 th largest stock exchange as of march
2016. Only about 4% of the Indian economy/GDP is actually derived from the
stock Exchange. The exchange was incorporated in 1992 as a tax-paying
company and was recognized as a stock exchange in 1993 under the securities
contracts (regulation) Act, 1956, when P. V. Narasimha Rao was the Prime
Minister of India and Manmohan Singh was the Finance Minister. NSE
commenced operations in the wholesale Debt Market (WDM) segment in June
1994. The capital market (equities) segment of the NSE commenced operations
in November 1994, while operations in the derivatives segment commenced in
June 2000.
Settlement Cycle and Trading Hours:

Equity spot markets follow a T+2 rolling settlement. This means that any trade
taking place on Monday gets settled by Wednesday. All trading on stock
exchanges takes place between 9:55 am and 3:30 pm, Indian Standard Time (+
5.5 hours GMT), Monday through Friday. Delivery of shares must be made in
dematerialized form, and each exchange has its own clearing house, which
assumes all settlement risk, by serving as a central counterparty.
Market Regulation:
The overall responsibility of development, regulation and supervision of the
stock market rests with the Securities & Exchange Board of India (SEBI),
which was formed in 1992 as an independent authority. Since then, SEBI has
consistently tried to lay down market rules in line with the best market
practices. It enjoys vast powers of imposing penalties on market participants,
in case of a breach.
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Investors of India:
India started permitting outside investments only in the 1990s. Foreign
investments are classified into two categories: foreign direct investment (FDI)
and foreign portfolio investment (FPI). All investments, in which an investor
takes part in the day-to-day management and operations of the company, are
treated as FDI, whereas investments in shares without any control over
management and operation are treated as FPI. For making portfolio
investment in India, one should be registered either as a foreign institutional
investor (FII) or as one of the sub-accounts of one of the registered FIIs. Both
registrations are granted by the market regulator, SEBI. Foreign institutional
investors mainly consist of mutual funds, pension funds, endowments,
sovereign wealth funds, insurance companies, banks, asset management
companies etc. At present, India does not allow foreign individuals to invest
directly into its stock market. However, high-net-worth individuals (those with
a net worth of at least $US50 million) can be registered as sub-accounts of an
FII.
Foreign institutional investors and their sub accounts can invest directly into
any of the stocks listed on any of the stock exchanges. Most portfolio
investments consist of investment in securities in the primary and secondary
markets, including shares, debentures and warrants of companies listed or to
be listed on a recognized stock exchange in India. FIIs can also invest in
unlisted securities outside stock exchanges, subject to approval of the price by
the Reserve Bank of India. Finally, they can invest in units of mutual funds
and derivatives traded on any stock exchange.
Online and Offline Trading:

Traditionally stock trading was done through stock brokers personally or
through telephones. As number of people trading in stock market increased
enormously in last few years, some issues like location constrains, busy phone
lines, miss communication etc. started growing in stock broker offices. Then
Information technology helped stock brokers to solve those problems by
Online Stock Trading method ("Online stock brokers,”). Online stock trading is
an internet based stock trading facility where Investor can trade shares
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through a website without any manual intervention from the broker. It also
provides investors with rich, interactive information in real time including
market updates, investment research and robust analysis. Advantages and
disadvantages of online trading are shown in (Table 3). Still some people like
offline stock trading where the customer calls the broker to enquire about the
stock prices. Then the broker asks some personal details to verify his identity.
After that customer can order the amount and the price at which he wants to
buy a particular stock. The broker places the order on behalf of the customer.
Similarly, the customer can also sell the shares in offline mode. And the
customer can monitor all these transactions by logging into his account. The
main advantage in offline trading is time-saving.
Demat Account and Trading Account:

Physical share certificates are converted into electronic format is known as
“Dematerialization or Demat”. Currently almost 99 percent of shares traded in
Indian stock exchanges are in demat mode. You have to open a demat account
if you want to buy or sell stocks, just like a bank account where actual money
is replaced by shares. Demat account allows you to buy, sell and transact
shares without the endless paperwork and delays. Similarly, a trading account
works as an intermediary between the savings account and demat account.
When you want to buy shares, first the money is transferred from your savings
account to trading account. After that required amount of shares are
purchased and finally shares are stored in electronic form in the demat
account. It works just in opposite way during the time of selling shares.
Product and Services offered by Sharekhan:
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*Sharekhan brings you a wide range of products with enhance tools and
features to help you trade faster and invest smarter:
1- Equity Trading Platform (Online/Offline):-

Investment in Equities has many advantages. One of the best avenues for long term wealth creation
whereas derivate help you leverage on anticipated market movement & acts as a hedging tool to
minimize your risk.
Key benefits :-
 Better long term return

 Dividend income
 Transparency
 Alpha delivery & top picks research
 Offering complete range of investment
2- Mutual Funds :-
An imminent asset class to diversify your investments. Sharekhan offer wide spectrum of investment
schemes from all top mutual fund houses.
Secure recurring investment by investing in systematic
investment plan in mutual fund of your choice .invest wisely
with sharekhan in lumpsum & SIP in mutual fund from across
all the fund houses.
Key benefits:-
 Diversification
 Minimization of risk
 Online & offline transaction facility
 Disciplined investment approach
 Dedicated back office software to view client investment in MF
3. PMS- Portfolio Management Service:-

Portfolio Management Services (PMS), service offered by the Portfolio Manager at Sharekhan, is an
investment portfolio in stocks, fixed income, debt, cash, structured products and other individual
securities, managed by a professional money manager that can potentially be tailored to meet specific
investment objectives.
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Key benefits :-
 Disciplined and professional approach to investments

 Maximizing returns while minimizing risks
 Active monitoring by an expert team to optimize returns
 Transparency in fees and commissions
 Periodic performance reporting to client

4- IPO(Initial Public Offer) :-

An opportunities to invest in the primary market where IPOs are issued at attractive prices which makes
it an investment that offers reasonable returns and acceptable risk. -printed ASBA application forms are
available or clients.
Key Benefits :-
 No refund hassles under ASBA process
 NO brokerage while applying for application
 No other hidden cost
1.2 INDUSTRY PROFILE
Banking sector:
The progress of banking is both the cause and result of the business growth
Today, bank is common words for the people. Every people know about the
bank. The person who have a more and they want to get interest on money
then they invest their money in the bank. If the persons require more money
then they contact with the bank.
After 1947 the Indian government also has taken a series of step of develop the
banking sector. Due to extensive efforts and considerable efforts of the
government today we have a no. of bank like as, RBI, industrial banks and Co-
operative banks.
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Today in the modern world banking is a backbone of national economy of any
country. The progress of banking is an unavoidable precondition to
correspond, health and swift growth of the national economic formation.
Institutions of banking have donated much to the growth of the developed
cannot run smoothly. Banking is an important in economy as blood in the
human body.
Origin of the word “bank” :-
Opinion is not uniform with regard to the origin of the word ‘bank’ according to
some authors the word ‘bank’s derived from the words ‘bank’s’ or ‘banquet’
that is absence. The early bankers, the Jews in Italy transacted their business
on benches in the market place, when a banker failed, his ‘bench’s broken into
pieces, by the people who indicated the bankruptcy of the individual banker.
But this explanation was turned out on the ground that the Italian
moneychangers as such were never called bankers in the Middle Ages. Some
others say that word ‘bank’ original derived from the German word ‘pack’
meaning a joint stock fund, which was Italianized into ‘banco’ when the
Germans when masters of a great part of Italy. According to Professor
Ramachandra Rao, “whatever be the origin of the word bank, it would trace the
history of banking in Europe from the middle ages.”
According to ancient European history, the Babylonians were the earlier people
to develop a systematized banking system. It is said that temples of Babylon
were used as banks and such the temples of Ephesus and Delhi were famous
great banking institutions. The antireligious feelings, which developed
afterwards, led to the collapse of public confidence in depositing money in
temples and the priests ceased to perform the banking business. Whenever
peace and solidarity were threatened, the spread of banking also was affected
entirely. However, after the revival of civilization and with the development of
social and economic instituting, money transactions also were revived.
It was in the 12thcentury that some banks were established in Venice and
Genoa. These banks were simply relieving deposit and lending money to the
people. In fact they were not banking of the modern type.
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Modern banking may be traced to money dealers on Florence who are received
money in the Florence who received money in the form of deposits and lend it
to business people. At this time, Florence was the center of money market in
Europe.
In England, money changing became an important function of bankers during

the reign of Edward III. Money changing refers to conversation of foreign coins
into British money. This function was performance by the royal exchanger on
behalf of the grown.
In another development, goldsmiths of England prepared the ground for

modern banking in England during the period of queen Elizabeth. The
goldsmiths used to receive valuables and funds of their customer’s time
become promissory notes. The seizure of a huge sum of money kept as safe
custody by the city merchants at royal mint by the government resulted in the
establishment of public banking in England. As a result of royal repudiation,
the merchants begat to entrust their cashiers with larger sums but later they
misappropriated their master’s money for their own benefit. Finding that their
employees had not treated them better than their king, the city merchants
deeded to keep their cash with the goldsmith.
Today in the modern world banking is a backbone of national economy of any

country. The progress of banking is an unavoidable precondition to correspond,
health and swift growth of the national economic formation. Institutions of
banking have donated much to the growth of the developed cannot run
smoothly. Banking is an important in economy as blood in the human body.
DEFINITION OF BANKING:
“A Banking company is a company, which transects business of banking in any

state of India.”
-Section s (5) of Banking Company Act (1949)
“Banking Company is a company, which accepts money with low rate, and
investment at deposit of money with high rate.”
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-Banking Regulation Act (1949)
“A bank is a financial institute and a financial intermediary that accepts

deposits and channels those deposits in to lending activities either directly or
through capital market. A bank connects customers that have capital deficits
to customers with capital surplus.”
Computer software:
computer software and service industry includes a board range of companies, offering of wide
range of products and services, a sampling personal computer operating system and office
productivity suites to network security application to payroll processing services information
technology consulting and outsourcing service the groups and markets are also wide ranging with,
nearly every fat of the global economy being targeted.
Since the 1990s, computers have become a part of everyday living for many people in
the world. Most white-collar jobs, and now even many blue-collar jobs, involve the
use of a computer in some form or another. In the medical industry, many hospitals now
use handheld computers loaded with their patients’ chart information. Cash registers
are now computers that track the sales of products for the store owner or manager.
Very few occupations or industries do not use a computer in some form for some
function. But all of these computers would not be useful at all if they were not
programmed to do what users needed them to. That is where the computer software
industry comes into the picture.
The field of computer software can be divided into three primary segments:
corporate information services (IS) departments, software vendors, and consultants.
Corporate IS departments usually implement and support software and hardware
products for companies that produce nontechnical items or services. They work with
the individual departments or lines of businesses within the company and their software
needs. They then fill gaps by creating software the company needs to make it operate
more efficiently, or they reprogram and improve existing software.
Definition of computer software:
Computer software is a collection of data or computer instruction that tell the

computer how to work. This is in contrast to physical hardware, from which the
system is built and actually performs the work.
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COMPANY PROFILE
BANKING SECTOR:
1.ICICI BANK
History:-
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly–owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering of
shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in
an all–stock amalgamation in fiscal2001, and secondary market sales by ICICI
to institutional investors in fiscal 2001 and fiscal 2002.
Vision and mission:-

Vision:
To be the leading provider of financial services in India and a major global

bank.
Mission:
We will leverage our people, technology, speed and financial capital to be the
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banker of first choice for our customers by delivering high quality, world-class
products and services expand the frontiers of our business globally. Play a
proactive role in the full realization of India’s potential maintain a healthy
financial profile and diversify our earnings across businesses and geographies
Maintain high standards of governance and ethics. Contribute positively to the

various countries and markets in which we operate. Create value for our
stakeholders.
2. YES BANK
History
Yes Bank Ltd was incorporated on November 21 2003. The bank was founded
by Rana Kapoor. The Bank obtained certificate of commencement of business
on January 21 2004. In the year 2005 they forayed into retail banking with
launch of International Gold and Silver debit card in partnership with
MasterCard International.
Vision and mission

Vision:
Building the Finest Quality Large Bank of the World in India
Mission:
To establish a high-quality, customer-centric, service-driven, private Indian

Bank catering to the ‘Future Businesses of India’
3. HDFC BANK
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History:
23
The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995. The Housing
Development Finance Corporation (HDFC) was amongst the first to receive an
'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable
network of over 1416 branches spread over 550 cities across India. All
branches are linked on an online real–time basis. Customers in over 500
locations are also serviced through Telephone Banking. The Bank also has a
network of about over 3382 networked ATMs across these cities.
Vision and mission

vision
"To become the market leader in Housing Development Finance in SriLanka"
Mission
We define our mission in the broader context of our shareholders, customers,

staff, the national economy, regulators and the natural environment.
 To our shareholders, our mission is to optimize returns.

 To our customers, our mission is to provide a caring service by
anticipating their requirements and innovatively satisfying them beyond
their expectations.
4. KOTAK BANK
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History:
In 1985 uday kotak established what became an Indian financial services

conglomerate. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the
group's flagship company, received a banking license from the Reserve Bank of
India (RBI). With this, KMFL became the first non-banking finance company in
India to be converted into a bank—Kotak Mahindra Bank Limited.
Vision and mission:

Vision:
They will be a world class Indian financial services group. Their technology and
best practices will be bench-marked along international lines while our
understanding of customers will be uniquely Indian. They will be more than a
repository of their customers' savings.
5. INDUSIND BANK
History:
Is an Indian new generation bank in Pune, established in 1994.[4] The bank

offers commercial, transactional and electronic banking products and services.
IndusInd Bank was inaugurated in April 1994 by then Union Finance
Minister Manmohan Singh. Indusind Bank is the first among the new-
generation private banks in India.
Vision and mission:

Vision:
 A relevant business and banking partner to our clients

 Customer Responsive, striving at all times to collaborate with clients in
providing solutions for their banking needs
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Mission:
We will consistently add value to all our stakeholders and emerge as the ‘best-
in-class’ in the chosen parameters amongst the comity of banks, by doubling
our profits, clients and branches within the next three years.
COMPUTER SOFTWEAR SECTOR
1.TCS
History:
TCS Limited was founded in 1968 by a division of Tata Sons Limited. Its early
contracts included punched card services to TISCO (now Tata Steel), working
on an Inter-Branch Reconciliation System for the Central Bank of India. In
1975 TCS made an electronic depository and trading system called SEMCOM
for Swiss company.
Vision and Mission:
Vision:
To be amongst the 5 most admired Information Technology Solution Providers

globally with leadership focus in delivery of products, solutions and services
which are globally competitive.
Mission:
The Mission of the Human Resources Department, is to Recruit, Develop and

Retain the High-Caliber Diverse workforce
 Employee centric organization

 Well defined policies and processes
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 Premeditated induction/Orientation Programme to suit individual needs
 Long term engagement with multiple project opportunities
Diversity in verticals/domain focus – Finance, Telecom, Technology, Shipping,

Airlines, Medical….…
2.INFOSYS
History:
Infosys was established by seven engineers in Pune, Maharashtra, India with

an initial capital of $250 in 1981. It was registered as Infosys Consultants
Private Limited on 2 July 1981. In 1983, it relocated its office to Bangalore,
Karnataka, India.
Vision and Mission:
Vision:
“To be a globally respected corporation that provides best-of-breed business

solutions, leveraging technology, delivered by best-in-class people.”
Mission:
“To achieve our objectives in an environment of fairness, honesty, and courtesy

towards our clients, employees, vendors and society at large.”
27
3.TECH MACHINE
HISTORY:
The history of technology is the history of the invention of tools and techniques
and is one of the ... Several of the six classic simple machines were invented in
Mesopotamia. Mesopotamians have been ... assembly line was the first. Mass
production brought automobiles and other high-tech goods to masses of
consumers.
Vision and mission:
Vision:
Machine vision (MV) is the technology and methods used to provide imaging-
based automatic inspection and analysis for such applications as automatic
inspection, process control, and robot guidance, usually in industry. Machine
vision refers to many technologies, software and hardware products, ...
followed by communicating that data, or comparing it against target ...
Mission:
Earn the trust of our customers through technically

superior products, solutions and services;
Earn the trust of our employees through
honesty, fairness and integrity;
Earn the trust of our stakeholders through
consistently attractive financial results."
28
4.WIPRO
HISTORY:
The company was incorporated on 29 December 1945 in Amalner,

Maharashtra by Mohamed Premji as "Western India Palm Refined Oil Limited",
later abbreviated to "Wipro".
Subsidiary: Wipro Enterprises, Appirio
Industry: Information technology, Software
Vision and mission:
Vision:
Contribute for global e-society, where a wide range of information is being

exchanged beyond time and space over global networks, which breaks down
the boundaries among countries, regions and cultures, allowing individuals to
take part in various social activities in an impartial, secure way. Continous
effort to enhance people's lifestyle and quality by means of developing new

technology in wireless communication.
Mission:
The Spirit of Wipro is the core of Wipro. These are our Values. It is about who
we are. It is our character. It is reflected consistently in all our behavior. The
Spirit is deeply rooted in the unchanging essence of Wipro. But it also
embraces what we must aspire to be. It is the indivisible synthesis of the four
values. The Spirit is a beacon. It is what gives us direction and a clear sense of
29
purpose. It energizes us and is the touchstone for all that we do.
30
5.HCL
History:
On 11 August 1976, the company was renamed Hindustan Computers Limited

(HCL). On 12 November 1991, a company called HCL Overseas Limited was
incorporated as a provider of technology development services. It received the
certificate of commencement of business on 10 February 1992 after which it
began its operations.
Vision And Mission:
Vision:
 Conduct our business according to the highest standards of honesty and

integrity. Provide a level of service and support that allows our customers to
confidently view us as their preferred solutions provider
31
1.4 THEORITICAL FRAMEWORK
Introduction:
Dividend decision by any company is an important issue to be determined by

the financial management. The dividend policy of firm determines what
proportion of earnings is paid to shareholders by way of dividends and what
proportion is ploughed back in the firm for reinvestment purpose that is
retained earnings. Payment of dividend is desirable because the shareholders
invest in the capital of the company with a view to earn higher return and to
maximize their wealth. On the contrary, retained earnings are the sources of
internal finance for financing future requirement and expansion programmer of
the company. Thus, both growth and dividends are desirable. But they are in
conflict; a higher dividend means less provision of funds for growth and higher
retained earnings means low dividends which majority of shareholders dislike.
As both decisions are complementary to each other and no decision can be
taken independent of the other, the finance manager has to formulate a
guidable dividend policy in such a way as to strike a comparison between
dividend payment and retention.
Meaning of Dividend:
The word ‘dividend’ is derived from the Latin word “Dividend” which means
“that which is to be divided”. This distribution is made out of the profits
remained after deducting all expenses, providing for taxation, and transferring
reasonable amount to reserve from the total income of the company. The term
dividend refers to that part of the profits of a company, which is to be
distributed amongst its shareholders. It may, therefore, be defined as the
return that shareholders get from the company, out of its profits, on his
shareholdings. According to the Institute of Chartered Accountants of India,
dividend is, “a distribution to shareholders out profits or reserves available for
this purpose.(2A company cannot declare dividend unless there is – - Sufficient
32
profits - Board of Directors recommendation - An acceptance .
33
shareholders in the annual general meeting. Thus, the Board of Directors
keeping in view the financial requirements of the company and the quantum of
reasonable return to shareholders decides how much dividend should be
distributed. It is declared in annual general meeting of the company and after
approval it is known as ‘declared dividend’
Types of Dividends:
Dividends can be classified into different categories depending upon the form
in which they are paid. The various forms of dividend are as under:
1) Cash Dividend
2) Stock Dividend or Bonus Issue
3) Bond Dividend
4) Scrip Dividend or Promissory Note
5) Property Dividend
1) Cash Dividend:
The usual practice is to pay dividends in cash. Payment of dividend in cash

results in outflow of funds from the firm. The firm should, therefore, have
adequate cash resources at its disposal or provide for such resources so that
its liquidity position is not adversely affected on account of distribution of
dividends in cash. Generally, shareholders are interested in cash dividend and
according to sec. 205(3) of the Companies Act also dividend is payable in cash
only.
2) Stock Dividend:
Stock dividend is next to cash dividend in respect of its popularity. Payment

stock dividend is popularly termed as “issue of bonus shares” in India. Issue of
bonus shares results in conversion of company’s profit into share capital.
Bonus shares are therefore, shares allotted by capitalization of reserves or
surplus of a corporate enterprise. Such shares are issued to the equity
34
shareholders in proportion to their holdings of the equity share capital of the
company. When the company pays stock dividend, there is no change in the
company’s assets or liabilities or in total market value of the company’s share.
A shareholders does not gain or loss as a result of new shares, because he
retain the same old proportion of total share capital.
However, in India issue of stock dividend is not permitted. Dividend has to be

paid in cash. According to SEBI’s guidelines on issue of bonus shares, bonus
shares cannot be issued in lieu of can issue bonus shares frequently in
addition to cash dividend. (Infosys, Wipro, TCS, etc.,)
3) Scrip Dividend:
It is the dividend given in the form of promissory notes to pay the amount at a
specific future date. The promissory note is known as scrip’s or dividend
certificates. When a company is a regular dividend paying company but
temporarily its cash position is affected due to locking up of funds, which is
likely to be released shortly, this opinion is preferred. Scrip may or may not be
interest bearing.
4) Bond Dividend:
In case the company does not have sufficient funds to pay dividend in cash it
may issue bonds for the amount due to the shareholders by way of dividends.
It has longer maturity date than Scrip dividend. It always carries interest.
Thus, bondholders get regular interest on their bonds besides payment of bond
money on the due date. But this practice is not seen in India nor legally
allowed.
5) Property Dividend:
In case of such dividend the company pays dividend in the form of assets other
than cash. This may be in form of company’s products. This type of dividend is
not popular in India.
35
Dividend Policy
Meaning of dividend policy

The term dividend policy refers to the policy concerning quantum of profits to
be distributed as dividend. The concept of dividend policy implies that
companies through their Board of Directors evolve a pattern of dividend
payments, which has a bearing on future action.
As per Weston and Brigham, “Dividend policy determines the division of

earnings between payments to shareholders and retained earning”.
Gitman, “The firm’s dividend policy represents a plan of action to be followed

whenever the dividend decision must be made.
Factors affecting Dividend Policy:

It is a generally accepted principle that the directors of a company have sole
right to declare dividend and determine its amount out of company’s earnings.
But, in addition to legal restrictions, they have to consider following factors
while deciding the dividend policy:
1) Preference of Shareholders:
The preference of shareholders may influence the dividend policy of the firm.
Dividend income provides investors a regular income and builds confidence
amongst the investors of the company. However, there are certain
shareholders, especially from high tax brackets, like to get the benefit of capital
gains in the form of appreciation in the value of share. In such a case, the
policy should try to satisfy the dominating group of shareholders.
2) Current Year's Earnings:
Earnings of a company fix the upper limit of dividends. A company has to

determine the amount of dividend keeping in view the actual earnings of the
current year only. Of course, the whole of earnings is not to be distributed by
the company, but it is the base of dividend policy.
36
3) Past Dividends:
Shareholders do expect that the company would pay not less than dividend
pain in the past. Of course, if conditions change, departure has to be made
from the past trend of dividends. But generally directors are hesitant to reduce
the previous year’s dividend rate, and if needed, they would maintain the rate
by withdrawing from accumulated profits.
4) Management Control Motive:
The existing shareholders or management’s control motive also influences the

dividend policy of a company. If the management wants that the existing
shareholders should continue to retain control over the company it would not
be wise to raise finance through issues of new shares, for that control is diluted
into the hands of new shareholders. Therefore, the firm may rely more on
retained earnings. It is likely to have a lesser dividend payout policy.
5) Liquidity Position:
Dividends entail cash payments. Hence, the liquidity position of the firm has a
bearing on its dividend decisions. A firm may have earned handsome profits,
but may not have enough cash to pay dividend. This is typically the case of
new establishments or highly profitable but rapidly expanding firms, which,
thanks to their substantial investment and other commitments do not have
adequate liquidity.
Types of Dividend Policies:

The dividend policy should be determined by taking into consideration the
above stated factors. A financial manager can recommend any one of the
following dividend policies:
1) Stable Dividend Policy:
Stability of dividend means similarity or no change in dividend payments over

the years. In other words, when a company pays dividend at a fixed rate and
37
follows it for future years to come regardless of fluctuations in the level of
earnings, it is said to be a stable dividend policy. Thus, stability of dividends
refers to regular payment of dividend at a fixed rate. Stable dividend policy
increases credibility of the management in the market and shareholders also
prefer such stock giving minimum return at regular interval leads to increase
in market price of shares. Those companies whose earnings are stable follow
this policy. The stability of dividend is described in two different ways viz. (a)
constant/fixed dividend per share (b) constant payout ratio.
(a) Constant amount per share:
In this policy, company pays fixed amount of dividend per share regularly –
every year irrespective about the earnings of the company. But it does not
mean that management has static nature and will adopt the policy for years to
come. If the company’s levels of earnings are increased gradually and same
level is to be maintained in the future then the dividend per share is been
increased respectively. This policy puts equity shares at par with preference
shares which yields fixed dividend per share every year. The fact that equity
shareholders bear the total risk of the business is forgotten here. Generally,
this policy is preferred by those persons and institutions that depend upon the
dividend income to meet their living and operating expenses.
(b) Constant payout ratio:
In this policy, a fixed percentage of net earnings are paid as dividend every
year, that is, constant payout ratio. For example, a company adopts a 60 per
cent payout, that is, 60 per cent of net earnings of the company will be paid as
dividend and 40 per cent of net earnings will be transferred to reserves. No
dividend is paid in the year of loss. Companies generally, prefer this policy
because it reflects the ability of the company to pay dividends. But it is not
preferred by shareholders as the return fluctuates with the amount of
earnings.
38
2) Policy of No Immediate Dividend:
Generally, management follows a policy of paying no immediate dividend in the

beginning of its life, as it requires funds for growth and expansion or they may
be experiencing serious financial difficulties and may be unable to pay
dividend. In this case, the firm can minimize adverse effects on the stock price
by carefully explaining the reason for the elimination of the dividend. After the,
no dividend policy, it is advisable that the company should either issue bonus
shares from its reserves or company’s shares should be split into shares of
small amount so that later on rate of dividend is maintained at a reasonable
rate.
3) Policy of Irregular Dividend:
When the firm does not payout fixed dividend regularly, it is irregular dividend
policy. It changes from year to year according to change in earnings level. This
policy is based on the management belief that dividends should be paid only
when the earnings and liquid position of the firm warrant it. Firms having
unstable earnings, particularly engaged in luxury goods, follow this policy.
4) Policy of Regular Dividend plus Extra Dividend:
This policy would be appropriate for a firm with cyclical earnings and limited
opportunities for growth. In a good earnings year, the firm would declare an
extra dividend. The designation ‘extra’ is used in connection with the payment
to tell the shareholders that this is extra and which might not be continued in
future. When the earnings of the company have permanently increased, the
extra dividend should be merged with regular normal dividend and thus, rate
of normal dividend should be raised.
5) Policy of Regular Dividend plus Stock Dividend:
In this policy company pays stock dividend in addition to the regular dividend
the dividend is split into two parts. This policy is adopted when the company
39
has earn edh and some profit and wants to give shareholders a share in the
additional profit but wants to retain cash for expansion. It is not advisable to
follow this policy for a long time, as the number of shares increases and the
earning per shares reduces, which led to decrease in share price.
40
CHAPTER:02
LITERATURE REVIEW
41
1) Dr. Debasish Sur, “Dividend payout trends in the post liberalization era: A
Case Study of Colgate Palmolive (I) Ltd.” Management Accountant, March
2005, attempted to assess the dividend policy of the company with particular
reference to its vital measures – dividend per share and dividend payout ratio
and three factors influencing dividend policy earning per share, capital
employed and quick ratio.
2) Singhania Monica, “Trends in Dividend Payout – A Study of Selected Indian

Companies”, Journal of Management Research, Vol. 5, No. 3, Dec. 2005.
Monica Singhania concluded that the sample companies declared dividend are
declined from 448 companies in 1992 to 376 companies in 2004. However, the
average dividend payout ratio increased significantly from about 25% - 68%
during 1992-2004.
3) Subba Reddy Y. “Dividend Policy of Indian Corporate Firms; an Analysis of

Trends and Determinants”, NSE Research Initiative, Dec. 2002, Serial No. 19.
Subba Reddy examined the dividend trends in India for a large sample of
stocks traded on NSE and BSE and found that the percentage of companies
paying dividends has declined from 60.5% in 1990 to 32.1% in 2001 and that
only a few companies have consistently paid the same levels of dividends.
4) James Walter, “Dividend Policy: It’s Influence on the Value of the Firm,”
Journal of Finance, May 1963. According to Walter, dividend payout ratio do
affect the share prices - (1) when the rate of return on investments exceeds the
cost of capital, the price per share increases as the dividend payout ratio
decreases, (2) when the rate of return on investment is equal to the cost of
capital, the price per share does not changes in dividend payout ratio, (3) when
the rate of return on investments is less than the cost of capital, the price per
share increase.
42
5) Myron J. Gordon, “The Investment, Financing and Valuation of the
Corporation, Homewood, III, Richard Irwin, 1962. Gordon leads to conclusions,
which are similar to that of the Walter’s. Moreover, Gordon’s model contends
that dividend policy of the firm is relevant and the investors put a positive
premium on current incomes/dividends. He argues that dividend policy affects
the value of shares even in a situation in which the return on investment of a
firm is equal to the required rate (r = ke). es as the dividend payout ratio
increases.
6) M. H. Miller and F. Modigliani, “Dividend Policy, Growth and the Valuation

of Shares,” Journal of Business, vol. 34, October 1961. Miller and Modigliani
have advanced the view that the value of firm depends solely on its earnings
power and is not influenced by the manner in which its earnings are split
between dividends and retained earnings. The view is referred to as the
‘dividend irrelevance theorem’.
7) John F. Muth, “Rational Expectations and the Theory of Price Movements”

1961. In a world of rational expectations, unexpected dividend announcements
would transmit messages about changes in earnings potential, which were not
incorporated in the market price earlier. The re-appraisal that occurs as a
result of these signals leads to price movements, which took like responses to
the dividends themselves, though they are actually caused by an underlying
revision of the estimate of earnings potential.
8) B. Graham and D.L. Dodd, Analysis: Principles and Techniques”, 3rd ed.,
New York, “Security Mc Grew Hill Book Company, 1951. According to Graham
and Dodd, the stock market places considerably more weight on dividends
than on retained earnings.
9) Merton H. Miller, “Do Dividends Really Matter?” Selected Paper No. 57,
Graduate School of Business, The University of Chicago. Miller said: “Both
43
views are correct in their own ways. The academic is thinking of the expected dividend; the
practitioner of the unexpected.” Miller conveys us that the practitioners’ view that dividends
matter very much and the academic view that dividends do not matter.
44
CHAPTER:03
RESEARCH METHODOLOGY
45
1. Problem Statement:
There are several factors which affect Share price. Researcher has to
analyze DPS effect on share price.
2. Objective of the Research:
 Objective :
 To determine the relationship between DPS and stock

performance.
3. Research Design:
Descriptive Research Design has been used for this research

because Descriptive research designs help provide answers to the
questions of who, what, when, where, and how associated with a
particular research problem, This research is Descriptive in nature which
is relevant to an inquisitive study as it required detail analysis of DPS
with The Market Price.
46
1. Data Collection Method:
Secondary Data:
Secondary data refers to data that is collected by someone other

than the user.
The research has use secondary source of data has been collected
from NSE & MONEY CONTROL. It comprises two different industries -top
five companies of each industry based on their market cap. DPS and
PRICE MOVEMENT of share for year 2019-20, 2020-21 and 2021-22 have
been collected from NSE.
2. Sampling:
Sample size:
Researcher has take two different industries -top five companies of

each industry based on their market cap.
10 companies listed in NSE which they published DPS.
Private Sector Bank IT Services and Consultancy

HDFC BANK TCS
ICICI BANK INFOSYS
KOTAK MAHINDRA HCL TECH
AXIS BANK WIPRO
INDUSIND BANK TECH MAHINDRA
Table 1 List of Companies Name
47
Analysis tools:
One sample T-TEST has been used to analyses the data.
The one sample t-test is a statistical procedure used to determine

whether a sample of observations could have been generated by a
process with a specific mean. Suppose you are interested in determining
whether an assembly line produces laptop computers that weigh five
pounds. To test this hypothesis, you could collect a sample of laptop
computers from the assembly line, measure their weights, and compare
the sample with a value of five using a one-sample t-test.
Hypothesis:
Hypothesis :
H0 = There is no significant relation between before and after dividend declaration

effect on share prices.
H1 =There is a significant relation between before and after dividend declared

declaration effect on share prices.
48
CHAPTER:04
DATA ANALYSIS & INTERPRETATION
49
ANALYSIS OF DIVIDEND PER SHARE ON SHARE PRICE :
Share Price Before & After 10 Days of Dividend Announcement of HDFC BANK
HDFC BANK
- 1403.70 0 1291.25
10
-9 1356.00 1 ---
-8 1352.95 2 ---
-7 1317.60 3 1305.10
-6 --- 4 1314.00
-5 --- 5 1313.90
-4 1319.85 6 1287.05
-3 1341.05 7 1320.95
-2 1348.60 8 ---
-1 1303.05 9 ---
0 1291.35 1 1304.00
0
Table 02 Share Price Before & After 10 Days of Dividend Announcement of
HDFC BANK
One-Sample Statistics
N Mean Std. Std. Error
Deviation Mean
BEFORE AVERAGE 11 2.2802E 20.91197 6.30520
3
AFTER AVERAGE 11 2.3034E 39.17948 11.81306
3
Table 03 One-Sample Statistics
50
One-Sample Test
Test Value
=0
95% Confidence Interval of the
t Df Sig. (2- Mean Difference
tailed) Difference Lower Upper
BEFORE AVERAGE 361.64 1 .00 2280.22727 2266.178 2294.2
2 0 0 4 761
AFTER AVERAGE 194.98 1 .00 2303.40000 2277.078 2329.7
8 0 0 9 211
Table 04 One-Sample Test
Interpretation:
From above Table 04 indicates that null hypothesis has been rejected because
significant value of DPS is 0.000 which is less than 0.05, So It Is say that
Dividend per share has significant impact on price of share.
51
Share Price Before & After 10 Days of Dividend Announcement of ICICI BANK
ICICI BANK
- 655.90 0 687.50
10
-9 641.90 1
682.50
-8 --- 2 ---
-7 655.95 3 ---
-6 676.65 4 681.40
-5 --- 5 690.40
-4 --- 6 714.65
-3 676.75 7 702.45
-2 677.45 8 697.65
-1 685.05 9 ---
0 687.50 1 702.85
0
ICICI BANK
Deviation Mean
BEFORE AVERAGE 11 4.0111E 5.02405 1.51481
2
AFTER AVERAGE 11 3.8638E 9.85681 2.97194
2
52
One-Sample Test
Test Value = 0
BEFORE AVERAGE 264.79 1 .000 401.11364 397.7384 404.488
5 0 8
AFTER AVERAGE 130.00 1 .000 386.37727 379.7554 392.999
8 0 2
Interpretation:
Share Price Before& After 10 Days of Dividend Announcement of KOTAK MAHINDRA

53
KOTAK MAHINDRA
- 1777.1 0 1753.85
10 0
-9 1807.85 1 1776.65
-8 1769.75 2 ---
-7 1714.1 3 ---
5
-6 1722.25 4 1836.05
-5 --- 5 1802.2
0
-4 --- 6 1779.4
0
-3 1725.20 7 1766.45
-2 1730.0 8 1784.50
0
-1 1763.10 9 1783.45
0 1753.85 1 1801.85
0
KOTAK MAHINDRA
Deviation Mean
BEFORE AVERAGE 11 1.3656E 15.32106 4.61947
3
AFTER AVERAGE 11 1.3985E 11.52071 3.47362
3
One-Sample Test
Test Value =
54
0
BEFORE AVERAGE 295.61 1 .00 1365.5954 1355.302 1375.888
7 0 0 5 6 3
AFTER AVERAGE 402.59 1 .00 1398.4727 1390.733 1406.212
8 0 0 3 0 4
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of AXIS BANK
AXIS BANK
55
-10 798.8 0 779.8
5 0
-9 797.8 1 728.6
0 0
-8 794.7 2 ---
0
-7 801.8 3 ---
0
-6 780.6 4 727.3
0 5
-5 --- 5 ---
-4 --- 707.2
6
0
-3 780.7 7 702.3
0 5
-2 775.0 8 673.9
0 5
-1 765.9 9 663.7
0 0
0 779.8 1 659.2
0 0 9
AXIS BANK
Deviation Mean
BEFORE AVERAGE 11 7.5896E 9.03933 2.72546
2
AFTER AVERAGE 11 7.4548E 12.19277 3.67626
2
One-Sample Test
Test Value =
0
56
BEFORE AVERAGE 278.47 1 .000 758.9590 752.8864 765.0318
0 0 9
AFTER AVERAGE 202.78 1 .000 745.4772 737.2861 753.6685
1 0 7
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of INDUSIND BANK
57
INDUSIND BANK
- 0 978.55
10 963.80
-9 972.55 1 ---
-8 989.25 2 ---
-7 959.85 3 1018.1
0
-6 --- 4 ---
-5 --- 5 978.30
-4 946.55 6 936. 80
-3 980.45 7 915.40
-2 974.50 8 ---
-1 988.35 9 ---
0 978.55 1 889.70
0
INDUSIND BANK
Deviation Mean
BEFORE AVERAGE 11 1.4367E 54.70248 16.49342
3
AFTER AVERAGE 11 1.6021E 45.93268 13.84923
3
One-Sample Test
Test Value =
0
58
BEFORE AVERAGE 87.105 1 .000 1436.6590 1399.909 1473.408
0 9 5 7
AFTER AVERAGE 115.68 1 .000 1602.1090 1571.251 1632.967
2 0 9 1 1
Interpretation:
Share Price Before & After 10 Days of Dividend Announcement of TCS
TCS
59
- --- 0 3914.7
10 0
-9 3884.0 1 3833.1
0 5
-8 3917.0 2 3840.0
0 0
-7 3857.0 3 ---
0
-6 3898.0 4 ---
0
-5 3965.3 5 3769.9
5 5
-4 --- 6 3765.0
0
-3 --- 7 3652.0
0
-2 4025.0 8 3697.8
0 5
-1 3993.9 9 ---
5
0 3914.7 10 ---
0
Table 17 Share Price Before & After 10 Days of Dividend Announcement of TCS
Deviation Mean
BEFORE AVERAGE 11 1.7499E 52.31837 15.77458
3
AFTER AVERAGE 11 1.8328E 82.99088 25.02269
3
One-Sample Test
Test Value =
0
Difference
60
t df Sig. (2- Mean Lower Upper
tailed) Difference
BEFORE AVERAGE 110.93 1 .00 1749.9363 1714.788 1785.084
4 0 0 6 4 3
AFTER AVERAGE 73.245 1 .00 1832.7818 1777.027 1888.535
0 0 2 8 9
Interpretation:
61
Share Price Before & After 10 Days of Dividend Announcement of INFOSYS
INFOSYS
-10 --- 0 1510.

00
-9 --- 1 1487.
00
-8 1469.5 2 1508.
5 00
-7 1444.0 3 1522.
0 75
-6 1418.0 4 ---
0
-5 1427.9 5 ---
5
-4 1466.5 6 1531.
0 00
-3 --- 7 1506.
60
-2 --- 8 1498.
50
-1 1529.0 9 1514.
0 50
0 1510.0 1 ---
0 0
Table 20 Share Price Before & After 10 Days of Dividend
Announcement of INFOSYS
Deviation Mean
BEFORE AVERAGE 11 6.2902E 19.14559 5.77261
2
AFTER AVERAGE 11 6.6640E 21.83956 6.58488
2
62
One-Sample Test
Test Value =
0
BEFORE AVERAGE 108.96 10 .00 629.01818 616.1560 641.880
6 0 4
AFTER AVERAGE 101.20 10 .00 666.40000 651.7280 681.072
2 0 0
Interpretation:
From above Table 22 indicates that null hypothesis
has been rejected because significant value of DPS is 0.000 which is
less than 0.05, So It Is say that Dividend per share has significant
impact on price of share
Share Price Before & After 10 Days of Dividend Announcement of HCL TECH
HCL TECH
-10 --- 0 1060.90
-9 1066. 1 1059.4
90 0
-8 --- 2 1052.15
-7 1044. 3 ---
95
-6 1072. 4 ---
05
-5 1050. 5 1044.55
20
-4 --- 6 1082.90
-3 --- 7 1073.70
-2 1076. 8 1009.40
10
-1 1072. 9 1028.85
55
0 1060. 1 ---
90 0
Announcement of HCL TECH
63
Deviation Mean
BEFORE AVERAGE 11 4.9665E 26.48231 7.98472
2
AFTER AVERAGE 11 5.2120E 8.25229 2.48816
2
One-Sample Test
Test Value =
0
BEFORE AVERAGE 62.201 1 .000 496.6545 478.863 514.445
0 5 5 6
AFTER AVERAGE 209.47 1 .000 521.1954 515.651 526.739
0 0 5 5 4
Interpretation:
From above Table 25 indicates that null hypothesis has been
rejected because significant value of DPS is 0.000 which is
less than 0.05, So It Is say that Dividend per share has
significant impact on price of share.
64
Share Price Before & After 10 Days of Dividend Announcement of WIPRO
WIPRO
-10 603.3 0 605.6

5 0
-9 --- 1 599.1
5
-8 --- 2 593.5
5
-7 600.2 3 580.8
0 5
-6 602.5 4 583.6
0 5
-5 600.8 5 571.1
0 0
-4 591.9 6 ---
0
-3 601.8 7 ---
0
-2 --- 8 558.7
0
-1 --- 9 559.2
0
0 605.6 1 ---
0 0
Announcement of WIPRO
Deviation Mean
BEFORE AVERAGE 11 2.5204E 3.56622 1.07526
2
AFTER AVERAGE 11 2.4851E 3.55134 1.07077
2
65
One-Sample Test
Test Value =
0
BEFORE AVERAGE 234.40 1 .000 252.0409 249.645 254.436
1 0 1 1 7
AFTER AVERAGE 232.08 1 .000 248.5136 246.127 250.899
9 0 4 8 5
Interpretation:
66
Share Price Before & After 10 Days of Dividend Announcement of TECH
MAHINDRA
TECH MAHINDRA
-10 1479. 0 1499.45

80
-9 1538. 1 1487.10
20
-8 1542. 2 ---
15
-7 1568. 3 ---
55
-6 1530. 4 1498.65
55
-5 --- 5 1489.0
5
-4 --- 6 1459.3
5
-3 1524. 7 1468.55
45
-2 1522. 8 1448.75
35
-1 1496. 9 ---
30
0 1499. 1 ---
45 0
Announcement of TECH MAHINDRA
Deviation Mean
BEFORE AVERAGE 11 5.1980E 11.42635 3.44517
2
AFTER AVERAGE 11 5.2205E 16.73824 5.04677
2
67
One-Sample Test
Test Value =
0
BEFORE AVERAGE 150.87 1 .000 519.8000 512.1237 527.4763
8 0 0
AFTER AVERAGE 103.44 1 .000 522.0454 510.8006 533.2904
2 0 5
Interpretation:
68
4.1 FIDINGS
Hypothesis testing of sample
Table 32 IMPACT OF DPS

Hypothesis COMPANY
testing of Significan Null
sample
NAME t Value hypothesis
rejected /
 accepted HDFC
HDFC BANK 0.000 Rejected BANK
have impact of
DPS 0.000 Rejected on SHARE
ICICI BANK
PRICE.
 ICICI 0.000 Rejected
BANK
have
KOTAK impact of
DPS MAHINDRA on SHARE
AXIS BANK 0.000 Rejected PRICE.
 KOTAK
INDUSIND 0.000 Rejected MAHNDRA
have BANK impact of
DPS TCS 0.000 Rejected on SHARE
PRICE.
 XIS INFOSYS 0.000 Rejected BANK
have impact of
DPS on SHARE
HCL TECH 0.000 Rejected
PRICE.
 INDUSIND
WIPRO 0.000 Rejected
BANK have
impact of
DPS TECH 0.000 Rejected on SHARE
MAHINDRA PRICE.
 TCS have impact of DPS on SHARE PRICE.
 INFOSYS have impact of DPS on SHARE PRICE.
 HCL TECH have impact of DPS on SHARE PRICE.
 WIPRO have impact of DPS on SHARE PRICE.
 TECH MAHINDRA have impact of DPS on SHARE PRICE.
 HDFC BANK has average shared price of Rs. 1403.70 before 10

days of DPS announcement which has decreased by Rs. 99.30
and reached to Rs. 1304.00 for after 10 days average.
69
 ICICI BANK has average shared price of Rs. 655.90 before 10
days of DPS announcement which has increased by Rs. 46.95
 KOTAK MAHINDRA has average shared price of Rs. 1777.10

before 10 days of DPS announcement which has increased by
Rs. 24.75 and reached to Rs. 1801.85 for after 10 days
average.
 AXIS BANK has average shared price of Rs. 798.85 before 10

days of DPS announcement which has decreased by Rs. 139.56
 INDUSIND BANK has average shared price of Rs. 963.80

before 10 days of DPS announcement which has decreased by
Rs. 74.10 and reached to Rs. 889.70 for after 10 days average.
 TCS has average shared price of Rs. 3884.00 before 10 days of

DPS announcement which has decreased by Rs. 186.15 and
reached to Rs. 3697.85 for after 10 days average.
 INFOSYS has average shared price of Rs. 1 4 6 8 . 5 5

b e f o r e 10 days of DPS announcement which has
increased by Rs. 104.95 and reached to Rs.1574.50 for after
10 days average.
 HCL TECH has average shared price of Rs. 1066.90 before 10

days of DPS announcement which has decreased by Rs.
3 8 . 0 5 and reached to Rs. 1028.85 for after 10 days
average.
 WIPRO has average shared price of Rs. 603.35 before 10 days

of DPS announcement which has increased by Rs.44.15 and
reached to Rs. 559.20 for after 10 days average.
 TECH MAHINDRA has average shared price of Rs. 1479.80

before 10 days of DPS announcement which has decreased by
Rs. 31.05 and reached to Rs. 1448.75 for after 10 days
average.
70
CHAPTER:05
CONCLUSION
o Based on the findings, the study concluded that DPS has a
71
positive and significant impact on share price.
o The dividend declaration affect almost in every sectors like

Banking sector, Computer sector.
o Investor can invest in HDFC BANK, KOTAK MAHINDRA, INDUSIND

BANK, TCS, INFOSYS, HCL TECH, TECH MAHINDRA because they are
fulfilling the expectation of dividend of investor.
o there is significant relation of share price changes with the dividend

policy as the might be facing liquidity crunch, or having some other
fruitful investment opportunities on hand which gets affected with
dividend announcement.
BIBLIOGRAPHY
72
Websites:
www.moneycontrol.com
www.bseindia.com
www.nseindia.com
https://en.m.wikipedia.org/wiki/Dividend_policy
https://en.m.wikipedia.org/wiki/Dividend
https://economictimes.indiaties.com/definition/dividend
https://www.investopedia.com/ask/answers/032715/what-does-
dividend- share-tell- investors.asp#:~:text=Updated%20Jul%209%2C
%202020,share%20profitsC%20with%20its%20shareholders.
https://corporatefinanceinstitute.com/resources/knowledge/
finance/divi dend-per-share/
https://www.moneycontrol.com/india/stockpricequote/DPS
https://bnpparibas.co.in
https://www.chittorgarh.com/stockbroker/sharekhan/2/
https://en.wikipedia.org/wiki/Stock_market
https://en.wikipedia.org/wiki/Share_price#:~:text=A%20share%20price% 20is
%20the,it%20can%20be%20bought%20for.
https://study.com/academy/answer/if-d1-3-00-g-which-is-
constant-5-and-p0-35-what-is-the-stock-s-expected-dividend-yield-
for-the-coming- year.html
https://www.nseindia.com/
https://www.moneycontrol.com/india/stockpricequote/DPS
BANK COMPUTER SOFTWRE SECTOR
ICICI dividend Rs. TCS Dividend

Rs.
08-08-2022 5.00 14-07-2022 8.00
29-07-2021 2.00 25-05-2022 22.00
73
YES INFOSYS
03-06-2019 2.00 31-05-2022 16.00
04-06-2018 2.70 26-10-2021 15.00
HDFC HCL TECH
13-05-2022 15.50 28-04-2022 18.00
29-06-2021 6.50 20-01-2022 10.00
KOTAK WIPRO
11-08-2021 0.9 05-04-2022 5.00
12-07-2019 0.8 21-01-2022 1.00
INDUSIND TECH MAHINDRA
17-08-2021 5.00 21-07-2022 15.00
08-08-2019 7.50 02-11-2021 15.00
APPENDIX
Table 33 A p p e n d i x
74

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A

PROJECT STUDY REPORT

Submitted towards the partial fulfilment of the requirement of

UNDER THE GUIDANCE OF

(DR. NAMRATA KHATRI)

G. H. Bhakta Management Academy

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

I, the undersigned ______________________________________, student of MBA

(2 year Full-time) programme at the Department of Business &

Industrial Management, Veer Narmad South Gujarat University, Surat

, hereby declare that the work reported by me in this report titled

“DIVIDEND ANNOUNCEMENT EFFECT ON SHARE PRICES” is original

and fully an outcome of the Summer Internship project work carried

out by me under the supervision of “Mrs. Ruchi Desai” at the

I also declare that the secondary sources of information have been

duly acknowledged wherever used.

submitted to any other University or institute for the award of any

This is to certify that the Project Study Report titled “DIVIDEND

DR. NAMRATA KHATRI

Department of Business and Industrial Management

Professor & Head

Here, The researcher has made research report on “dividend announcement

In chapter 1. The researcher has general overview about Impact of Dividend

In chapter 4, The researcher has included Theoretical framework. In this

In chapter 6, The researcher has included research methodology in which

In chapter 7, The researcher has included data analysis and interpretation. In

1.2 INDUSTRY PROFILE 17

4.1 FINDINGS & LEARNING 66

INTRODUCTION OF ‘SHAREKHAN’BY BNP PARIBAS

 Name of the Company:- Sharekhan by BNP PARIBAS

 Year of Establishment: 1925

 Headquarter:- Sharekhan SSKI A-206 Phoenix House

 Nature of Business :- Service Provider

 Number of Employees :-Over 4500+

 Revenue:- Data Not Available

 Slogan:- Your Guide to The Financial Jungle.

REASON TO CHOOSE SHAREKHAN

Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

Sharekhan has dedicated research teams of more than 30 people for

1. Sharekhan Website ( Trading Website)

2. Sharekhan App (Mobile Trading App)

3. Trade Tiger (Downloadable Trading Software)

Introduction to the Indian stock market

A stock market, equity market or share market is the aggregation of buyers

SEBI’s management is composed of its own members. Its management team

National Stock Exchange has a total market capitalization of more than

Settlement Cycle and Trading Hours:

Online and Offline Trading:

Demat Account and Trading Account:

Product and Services offered by Sharekhan:

1- Equity Trading Platform (Online/Offline):-

 Better long term return

3. PMS- Portfolio Management Service:-

 Disciplined and professional approach to investments

4- IPO(Initial Public Offer) :-

1.2 INDUSTRY PROFILE

Origin of the word “bank” :-

In England, money changing became an important function of bankers during

In another development, goldsmiths of England prepared the ground for

Today in the modern world banking is a backbone of national economy of any

“A Banking company is a company, which transects business of banking in any

-Section s (5) of Banking Company Act (1949)

“A bank is a financial institute and a financial intermediary that accepts