International Research Journal of Commerce , Arts and Science

 ( Online- ISSN 2319 - 9202 )     New DOI : 10.32804/CASIRJ

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TAXATION AND CORPORATE PAYOUT POLICY: EVIDENCE FROM INDIAN COMPANIES

    3 Author(s):  MS. SURBHI JAIN, MS. NIKITA PASAN, MS. KAVITA

Vol -  8, Issue- 5 ,         Page(s) : 114 - 119  (2017 ) DOI : https://doi.org/10.32804/CASIRJ

Abstract

This paper is an attempt to empirically test the impact of Taxation on Corporate Payout Policy of Indian companies listed at National Stock Exchange (NSE) during the period 2011-2015. Random panel regression model is used to estimate the relationship between the two. The results reveal a positive relation between Tax saving and Corporate Payout Policy. Other variables such as Leverage and Size were also tested to evaluate their impact on Corporate Payout Policy. Leverage and Size also have positive impact on dividend policy of the company. Hence the paper suggests that an increase in tax savings results in an increase in dividends.

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