1、本科毕业论文（设计） 外 文 翻 译 原文： The Impact of Dividend Policy on Shareholders Wealth 1. Introduction In an ever-increasing Indian economy, globalization, liberalization and privatization together with rapid strides made by information technology, have brought intense competition in every field of activity. S
2、o, Indian companies at present are dazed, confused, and apprehensive. To maintain the competitiveness of, and add value to the companies, todays finance managers have to make critical business and financial decisions which will lead to long-run perspective with the objective of maximizing the shareh
3、olders wealth. Shareholders wealth is represented in the market price of the companys common stock, which, in turn, is the function of the companys investment, financing and dividend decision. Managements primary goal is shareholders wealth maximization, which translates into maximizing the value of
4、 the company as measured by the price of the companys common stock. Shareholders like cash dividends, but they also like the growth in EPS that results from ploughing earning back into the business. The optimal dividend policy is the one that maximizes the companys stock price which leads to maximiz
5、ation of shareholders wealth and thereby ensures more rapid economic growth. The present study is intended to study how far the dividend payout has impact on shareholders wealth in general； and in particular to study the relationship between the shareholders wealth and the dividend payout and to ana
6、lyze whether the level of dividend payout affects the wealth of the shareholders. 2. Statement of the Problems In India few studies have analyzed the relationship between the shareholders wealth and dividend payment. Net earnings are divided into two parts retained earnings and dividends. The retain
7、ed earnings of the business may be reinvested and treated as a source of long-term funds. The dividend should be distributed to the shareholders in order to maximize their wealth as they have invested their money in the expectation of being made better off financially. Therefore, the present study m
8、ainly analyses how far the level of dividend payout affects the shareholders wealth, particularly in (Organic and Inorganic) Chemical Companies in India. 3. Objectives of the Study To study the relationship between dividend payout and shareholders wealth. To analyze the impact of variation in divide
9、nd policy on shareholders wealth of dividend paying and non-paying companies in (Organic and Inorganic) Chemical Companies India. To analyze the impact of retained earnings and past performance in the presence of dividend policy on shareholders wealth of (Organic and Inorganic) Chemical Companies in
10、 India. 4. Hypotheses H1: “There is no significant difference in average market value relative to book value of equity between dividend payers and non-payers of (Organic and Inorganic) chemical companies.” H2:“There is no significant impact of dividend policy on shareholders wealth in (Organic and I
11、norganic) chemical companies.” 5. Methodology 5.1. Sources of Data The study used only secondary data which are collected from CMIE (Centre for Monitoring Indian Economy) prowess package. Analytical method is used for interpreting the data. The data collected from this source have been compiled and
12、used with due care as per the requirements of the study. 5.2. Sampling Design Originally the sample for this study has been planned to choose from the list of companies listed in National Stock Exchange (NSE). Since the number of companies listed in the NSE is lesser in number (21 companies in Organ
13、ic and Inorganic Chemical Industry), the sample of 28 companies in Chemical Industry (Organic-19 and Inorganic-9) has been chosen from 114 listed companies in BSE (Bombay Stock Exchange) using Multi-Stage Random Sampling Technique. The sample units have been chosen for the study based on the availab
14、ility of required financial data like share price, DPS etc. 6. Tools used for Analysis of Data The equations and variables used for the study are given below: The subscript i denotes the ith company in a sample of n companies selected from a particular industry, and all variables are measured in the
15、 ith time period. Market price per share is the closing prices for the year. To analyze the data, the statistical tools that have been used are Mean, Standard Deviation, multiple regression technique and stepwise regression method to ascertain best fitted model for predicting the dividend policy imp
16、act on shareholders wealth. The significance of various explanatory variables has been tested by computing t-values. To determine the proportion of explained variation in the dependent variable, the coefficient of determination (R2) has been worked out. The significance of R2 has also been tested wi
17、th the help of F-Value. 7. Period of the Study The data used for the analysis are relating to the selected (Organic and Inorganic) Chemical Companies for the period of Ten years (1997-2006). 8. Analysis and Results 8.1. Comparison of Shareholders Value between Dividend Payers and Non-Payers among Or
18、ganic Companies Before going through evaluating the relationship between dividend policy and shareholders wealth of selected (Organic and Inorganic) chemical companies in India, it has been tried to compare the average wealth of investors between dividend paying and non-paying Organic and Inorganic companies in India. The comparison of mean shareholders wealth of companies of all types pooled under dividend paying and non-paying companies are also carried out. The mean values between two groups are
