Title: Impact of Dividend behavior on share prices of Indian firms

Dividend policy decision is one of the three decisions of financial management because it
affects the financial structure, the flow of funds, corporate liquidating and investors attitudes.
The main aspect of dividend policy is to determine the amount of earning to be distributed the
shareholder and the amount to be retained in the firm. Dividend policy involves the decision to
pay out earning versus retaining them for reinvestment in the firm. The relationship between
dividend and the value of the share is not clear cut. The financial manager must understand the
various conflicting factors which influence the dividend policy before deciding the allocation of
its companys earnings into dividends and retain earnings.

This study will focus on the dividend practice and its influence on stock prices of Indian IT
industry including major IT players Infosys, TCS, HCL Wipro, Tech Mahindra and Mind Tree for
last five/ten year.

The study will show the degree of correlation between the mentioned 6 listed companies and
industry with respect to the number of cash dividend paying companies. Most of the IT
companies not being capable of declaring cash dividend to their shareholders. Our study will
wrap up the difference between the average MPS (market price per share) before and after the
cash dividend.

Time Line:
Activities
Primary study and data collection for dividend and MPS for all 6
companies
Industry analysis : dividend behavior and MPS
Summary of findings
Report Preparation and submission

Submitted by : Group 3 ( Corporate Finance)

Time Line
25-Aug-15
31-Aug-15
7-Sep-15
14-Sep-15

Industry selection: Indian IT industry (Infosys, TCS, HCL Wipro, Tech Mahindra and Mind Tree)
Following candidates will cover the study of the impact of dividend behavior on share prices of
the respective firm.
Name of the candidate
Pawan Kumar Verma
Ravish Sehgal
Shital Desai
Jahid Ahmed
Akhilendra Tiwari
Aditya Rajain

Roll No
70
79
81
62
EM-01
50

Company
HCL
TCS
Infosys
Mind Tree
Wipro
Tech Mahindra

References :
http://www.moneycontrol.com/stocks/marketstats/hidivyields.php?optex=BSE&indcode=25&g
roup=All

Submitted by : Group 3 ( Corporate Finance)