Impact of Dividend Policy on Firm Value with Special Reference to Financial Crisis

The present study explores the relationship between dividend policy and firm value with respect to financial crisis. The investigation is based on data of 500 companies listed on the BSE for the period 2001 to 2017. The dynamic panel regression with two-step system Generalised Method of Moments (GMM) is applied. The findings show that dividend policy does not affect firm value definitely. However, the study observes that financial crisis impacted the relationship between dividend behaviour and firm value. Furthermore, the higher dividend yield in post crisis period may indicate evidences of signalling hypothesis