DETERMINANTS OF DIVIDEND POLICY OF RELIANCE INDUSTRY LIMITED

Abstract: The present study empirically attempts to examine the determinants of dividend policy of reliance industry limited. Sample period of study from 2007-08 to 2017- 2018 i.e. 10 years. Secondary data has collected from the annual report of reliance industry. Descriptive statistics, correlation matrix, ANOVA and regression model are used to analyze relationship and impact of specified variable on dependent variable. Findings suggest that leverage and liquidity has positively correlated with dividend pay-out ratio. Tax ratio, size and profitability has negatively correlated with dividend pay-out ratio of Reliance Industry Limited. Leverage has positively and significantly correlated with dividend rate. Size and risk have significant but negatively correlated with dividend rate of Reliance Industry Limited. Profitability and risk both having negative significant impact on dividend pay-out ratio.Leverage has positive significant impact on dividend rate but risk and profitability have negative significant impact on dividend rate of Reliance Industry Limited.

Keywords: Correlation, Dividend rate, Dividend payout, Leverage, Profitability, Regression.