Impact of Dividend Policy on Shareholder Wealth Creation: With Special Reference to TVS Holdings Ltd.
Abstract
Dividend policy has remained a most controversial topic in financial management for a long time. It involves fundamental choices regarding how much of a firm's earning should be distributed to shareholders in the form of dividends and how much should be retained for further growth and reinvestments. The role of dividend policy in terms of shareholder wealth maximization has remained a topic for in-depth study, and researchers being divided between theories of dividend relevance that hold that dividends contribute to investors' confidence and raise stock prices and theories of dividend irrelevance that argue that dividends do not matter to wealth if reinvestments bring out productive returns. This study examines relationship between TVS Holdings shareholder wealth and dividend policy. With the help of financial statement data from 2021 to 2025 covering variables like Dividend per Share (DPS), Dividend Pay-out Ratio (DPR), Earnings per Share (EPS), and Return on Equity (ROE), this study aims to establish to what extent shareholder value is materially affected by their dividend decisions. The findings show that dividend policy has a weak and statistically insignificant association with wealth indicators, while profitability and earning performance are found to be the more dominant determinants of shareholder value.
Citations
IRE Journals:
Varun Kumar Reddy, Prof. Maruthi V "Impact of Dividend Policy on Shareholder Wealth Creation: With Special Reference to TVS Holdings Ltd." Iconic Research And Engineering Journals Volume 9 Issue 5 2025 Page 310-312 https://doi.org/10.64388/IREV9I5-1711805
IEEE:
Varun Kumar Reddy, Prof. Maruthi V
"Impact of Dividend Policy on Shareholder Wealth Creation: With Special Reference to TVS Holdings Ltd." Iconic Research And Engineering Journals, 9(5) https://doi.org/10.64388/IREV9I5-1711805
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