A COMPARATIVE STUDY ON DIVIDEND POLICY AND ITS INFLUENCE ON STOCK PRICES OF SOME SELECTED INDIAN STEEL AND ALUMINUM COMPANIES

As the companies must balance the interest of different shareholders the dividend policy they select may have different impact on stock prices or sometimes it may not be impacted on stock price. Objectives of the study to examine whether EPS and DPS has any impact on stock prices of two important industries like steel and aluminum. Ten listed sample company from each industry are chosen on the basis of market capitalization. The analysis has been done on the basis of correlation and regression statistic. Finally it was found that steel companies MPS will not change by EPS and DPS , on the other side aluminum companies MPS will change by EPS and DPS.