FINANCIAL INDICATORS IN DETERMINING MARKET SHARE PRICES OF HEALTHCARE SECTOR COMPANIES LISTED ON BSE
The relationship over dividend policy and market share price is a highly contested topic within the realm of corporate finance. There exists a substantial body of literature both in support of and in opposition to this matter. The objective of this study is to assess the impact of dividend policy on the market prices of shares belonging to the healthcare sector firms that are listed on the Bombay Stock Exchange (BSE) during the period of 2013-2022. The data were analysed using various panel data regression models, including pooled regression, fixed effect model, and random effect model. The Hausman test has been employed to propose the regression model that is best suitable. The Hausman test suggests that the random effect model is better appropriate for explaining the relationship between the variables under consideration. The findings of the random effects regression model provide empirical support for the pertinent theories and frameworks pertaining to dividend policy. Therefore, it can be inferred that there exists a substantial impact of dividend policy on the stock price of companies.
Dividend, Regression, Stock Price, Value of the Firm, Dividend yield, Retention Ratio, Profit after Tax, Return on Equity.