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Disappearing Dividends in Emerging Markets?: Evidence from India

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  • Y. SUBBA REDDY
  • SUBHRENDU RATH

Abstract

This study examines the dividend behavior of Indian corporate firms in an emerging market (India), identifying characteristics of dividend payers and nonpayers from 1991 to 2001. Dividend trends for a large sample of stocks traded on Indian markets indicate that the percentage of companies paying dividends declined, from over 57 percent in 1991 to 32 percent in 2001, and that only a few firms paid regular dividends. Even though regular payers consistently paid higher dividends than did other firms, on average, Indian firms became less likely to pay dividends by the close of the century. Dividend-paying companies were likely to be larger and more profitable than nonpaying companies, though growth opportunities do not seem to have significantly influenced the dividend policies of Indian firms.

Suggested Citation

  • Y. Subba Reddy & Subhrendu Rath, 2005. "Disappearing Dividends in Emerging Markets?: Evidence from India," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 41(6), pages 58-82, November.
    • Handle: RePEc:mes:emfitr:v:41:y:2005:i:6:p:58-82
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    Citations

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    Cited by:

    1. Saeed, Abubakr, 2021. "The impact of employee friendly practices on dividend payments: Evidence from emerging economies," Journal of Business Research, Elsevier, vol. 135(C), pages 592-605.
    2. E. Fedorova A. & A. Voronkevich B. & C. Kameneva A. & Е. Федорова А. & А. Воронкевич Б. & Е. Каменева А., 2017. "Влияние Концентрации Собственности На Дивидендную Политику Российских Компаний // The Influence Of Ownership Concentration On The Dividend Policy Of Russian Companies," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 21(2), pages 23-29.
    3. Sunaina Kanojia & Bunny Singh Bhatia, 2022. "Corporate governance and dividend policy of the US and Indian companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1339-1373, December.
    4. Geetanjali Pinto & Shailesh Rastogi, 2019. "Sectoral Analysis of Factors Influencing Dividend Policy: Case of an Emerging Financial Market," JRFM, MDPI, vol. 12(3), pages 1-18, June.
    5. Joseph Yensu & Charles Adusei, 2016. "Dividend Policy Decision across African Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(6), pages 1-63, June.
    6. Amitava Roy, 2015. "Dividend Policy, Ownership Structure and Corporate Governance: An Empirical Analysis of Indian Firms," Indian Journal of Corporate Governance, , vol. 8(1), pages 1-33, June.
    7. Manos, Ronny & Murinde, Victor & Green, Christopher J., 2012. "Dividend policy and business groups: Evidence from Indian firms," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 42-56.
    8. Cahit Adaoglu, 2008. "Dividend Policy of the ISE Industrial Corporations: The Evidence Revisited (1986-2007)," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 2(2), pages 113-135.

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    Keywords

    dividends; India; payout policy;
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