2. Objective To know the cause and effect association between dividend decision and its determinants in Indian IT industry and cement industry. And also do a comparative analysis between the two.
21. COMPARATIVE ANALYSIS The first major observation that can be made for both the industries is the fairly constant payout ratio over a long period. Also the dividends paid in the IT industry have been fairly high as compared to that in cement industry owing to higher and more certain earnings.
25. Sales and PAT are the most significant factors imparting dividend paying capacity to the firms.
26. Since in the cement industry average Debt-equity ratio is higher, it has higher negative impact on dividend policy.
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28. But IT industry owing to higher earnings have distributed larger amount in the form of dividends while the cement industry has been more conservative in the approach.
29. The factors impacting the dividend policy of the companies in both the sectors have been fairly same in the long term though the degree of influence has been different.