Determinants Of Dividend Policy And Their Effect On The Shareholders Wealth Of Select Pharmaceutical Companies In India

In India there is no Legal Compulsion to pay Dividends to shareholders how much % of profits to be distributed as Dividends is not fixed and not Compulsory. Everything is left to Middlemen called the Board of Directors Policy makers depending on the Company Situations. The role of middlemen has predominantly has increased after the introduction of Joint Stock Company. Neither the Manufacturers nor the Customers / Consumers are becoming rich only the middlemen are becoming rich. And the gap between the Haves and Have Nots are increasing. After the amendment of Companies Act 2013 there are many changes have come in Company law such as Introduction of Corporate Social Responsibility (CSR) of 2% of Profits. Also there are many changes made to attract FDIS FPIs Improving the ranking of India in ease for doing business etc. Many Macro Economic Variables / Factors are also responsible for the revenues / Profits of the business of the pharmaceutical companies in India there by the dividend decisions are also linked.