AN EMPIRICAL STUDY ON ANALYSIS THE DETERMINANTS OF DIVIDEND PAY-OUT RATIO OF INDIAN PHARMACEUTICALS INDUSTRY

Abstract

The purpose of this study to identify trends & determinants of the pharmaceutical industry. The essence of this study is empirical analysis. For the pharmaceutical industry, trends & patterns of dividends & major determinants which impact dividend decisions are researched & studied. The inter-relationship among dividend determinants was explored with the use of multiple correlation analysis. The magnitude of the dependant variable parameters was established & rediscovered through the use of multiple regression-a significant multivariate method. Until then, twelve hypotheses have been checked in order to arrive at the preliminary conclusion of the logical structure. ANOVA was used to evaluate the reliability of dividend determinant variables for the pharmaceutical industry. The extent of the risk associated with each dividend determinant in the pharmaceutical industry was demonstrated by the calculation of the Beta coefficients &, finally, a set of unique & exclusive structural equation models for the pharmaceutical industry was presented to contribute to the philosophy of the subject. The findings of the structural equation applied to the pharmaceutical sector have shown that the specific required changes, such as Earnings Per Share, Debt-Equity Ratio, Revenue Increase, Net Income To Loss Ratio & Operating Profit Ratio, are the main determinants of dividend decisions