Trends and Progress in Corporate Dividend of Selected Steel Companies in India

Abstract

Steel is vital for the development of any modem economy and has been considered to be the backbone of the human civilization. The level of per capita consumption of steel has been treated as one of the important indicators of socio economic development and living standards of the people in any country. Steel has a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flow and income generation. All major industrial economies were characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Dividend decision is considered as one of the most important decisions that the managers make, as it affects the resources available at the firm's disposal for further growth and perhaps, the wealth of the shareholders. The profits of a firm can be used for reinvestment within the firm by purchasing a new plant and machinery, investing in research and development, expanding inventories and the like. The dividend decision is an integral part of a company's financial decision making, as it is explicitly related to the other two major decisions, the investment decision and the financial decision.