Total views : 227

Comparative Analysis on the Wealth of the Shareholders among Dividend Paying and Non-paying Companies in Indian Pharamaceutical Companies


  • School of Management Studies, Vels University, P. V. Vaithiyalingam Road, Pallavaram, Chennai - 600043, Tamil Nadu, India


Background/Objectives: One of the important and complex decisions in the area of finance is dividend decisions. The main purpose of this study is to know the shareholders wealth between the companies who pay dividend and companies not paying dividend in Indian pharmaceutical industry. Method/Statistical Analysis: Based on Market Capitalization the top Ten dividend paying pharmaceutical companies and ten non-dividend paying companies listed in NSE has been selected. Data were collected for 15 years from 2001 to 2015 from the companies' reports and Prowess database. Tools Mean and Independent t statistics were used for the study. Findings: The average market to book value of equity of companies paying dividend is more than the non-dividend paying companies and through independent t test the results were statistically verified. Applications/Improvement: Based on the study the investors can opt for dividend paying companies than the non-dividend paying companies for investment. This would increase their wealth in the long term. The study can be extended to different industry with long years of data.


Dividend Paying Companies, Non-dividend Paying Companies, Shareholders Wealth, Market Capitalization.

Full Text:

 |  (PDF views: 227)


  • Azhagaia R,Sabaripriya N. The impact of dividend policy on shareholders’ wealth. International Research Journal of Finance and Economics. 2008; 20(1):180–7.
  • Bawa SK, Kaur P. Impact of dividend policy on shareholders’ wealth: An empirical analysis of Indian information technology sector. Asia Pacific Finance and Accounting Review. 2013; 1(3):17–24.
  • James C, Horne V, John M,Wachowicz JR.Financial Management, 12th Edition. Pearson Education: USA; 2001.
  • Joe K, Shim S, Joel G, Siegel S. Financial Management, 3rd Edition. Barron’s Business Library; 2008.
  • Gul S, Sajid M, Razzaq N, Iqbal M, Khan M. The relationship between dividend policy and shareholders’ wealth. Economic and Finance Review. 2012; 2(2):55–9.
  • Yufen FU,George W,Blazenko B. Returns for dividend paying and non dividend paying firms. International Journal of Business and Finance Research. 2015; 9(2):1–20.
  • Jim MM. Financial Management: An Introduction, 1st Edition. Routledge: USA; 1999.
  • Chandra P. Financial Management - Theory and Practice, 8th Edition. Tata McGraw Hill: India; 2011.
  • Indian Pharmaceutical Industry, Pharmaceutical Industry In India [Internet]. [Cited 2016 Apr 27].
  • Thirumagal PG, Vasantha S. Dividend policy on Shareholders wealth – Evidences from Indian Pharmaceutical industry. Indian Journal of Science and Technology. 2016; 9(15):1–6.DOI: 10.17485/ijst/2016/v9i15/90568.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.