Impact of Profitability, Risk, Leverage, and Liquidity on Dividend -A Study of Oil and Gas Sector in India

Abstract

An attempt has been made to study the impact of the independent variables i.e. Profitability(ROE, ROA, EPS), Risk (P/E), Leverage (Debt-Equity), and Liquidity (CR) on dependent variable i.e. Dividend Decision of Public Oil and Gas Sector in India in the present research paper. A direct relationship has been found between Risk and Dividend, while an indirect relationship has been found between Leverage; Liquidity and Dividend during the study period. It can be concluded from the regression model that the dependent variable i.e. Dividend can be predicted from a linear combination of factors affecting Dividend Decision i.e. Risk, Leverage and Liquidity.

Keywords: Dividend, Leverage, Liquidity, Profitability, Risk