Volume : 2, Issue : 5, May - 2013

Study of Dividend Decision of Tata Motors in the Light of EPS

Soheli Ghose

Abstract :

Corporate finance deals with long–term and short–term decisions and techniques relating to monetary decisions that business enterprises make and the tools and analysis used to make these decisions, making Dividend Decision one of the important aspects as the primary goal of corporate finance is to maximize shareholder value thereby of corporate finance. In the above context I have studied the relationship between the Dividend per share, Adjusted & Reported EPS, Operating Profit per share, Net Operating Income per share, Free Reserves per share of Tata Motors over a period of 2008 to 2012. The study is based on secondary data collected from the authentic websites of these companies. I have used Pearson’s Correlation Coefficient (2 Tailed test, 5% Level of Significance) to see whether there is any significant correlation between the above mentioned variables. It also needs to be seen whether there are any major fluctuations in the above variables over the period of study and to what extent.