A study on behavior of share price in Response to pattern and announcement Of dividend with special reference To CNX bank index

Abstract

Capital market has occupied an imperative role in forming the newlineprosperity of country economic by motivating the behavior of investment and newlinesaving to their investor It provides the opportunity to investors and user to newlineexchange the stream of capital in the segment of productive investment and newlinesaving avenue Many investors strongly believe that investing in the share newlinemarket generate ample form of profit among others type of investments newlineGroup of investors share traders speculators government foreign newlineinstitutional investors and financial institutions find that Indian capital market newlineis lucrative to invest and support to build healthy economy and market newlineCapital market generous allocated two types of returns to their newlineinvestors such as investment return in the form of capital appreciation or gains newlineand annual return in the form of dividend Motive of all the investments newlineshould focus towards capital gain which provoke the investor to take high risk newlinefor generate high income in the value of security Dividends are generally newlinedefined as the distribution of current or past year net profit among their newlineinvestor of the firm in the level of ownership quantity Firm managers are not newlineliable to pay the dividend among shareholders but it should be the newlinecreditworthy of manger to share the profit in the form of dividend newlineDividend policies are considered as payout policy which manger newlineshould commit in deciding the amount of profit to distribute among the newlineshareholders Primary objective of every management should focus on newlinemaximization the shareholders wealth in the form of increasing the value of newlinefirm share price This objective can be reached by providing the shareholders newlinea reasonable payment to their respective investments Every corporate newlinedividend policy should give a place to realize equilibrium between retained newlineearnings and dividends However the effect on dividend policy towards the newlineshareholders wealth is still a questionable issue newline