Content Analysis of Dividend Distribution Policy of Indian Listed Companies

This study attempts to perform content analysis, which is based on specific paradigms of unobtrusive research techniques, including conceptual and document analysis of the dividend distribution policies of the top 200 listed companies by market capitalisation to assess whether the policies enunciated by the companies align with the parameters suggested in the SEBI regulation. To conduct a content analysis, the authors use a three-step methodology to collect the dividend distribution policy documents and thus evaluate their content. First, we revisited the regulatory framework for the dividend policy and the provisions laid down by the regulators. The necessary information pertaining to the divided policy as per the legislations was retrieved from the policy documents and categorised further for the analysis. Finally, the collected information in the form of a document as per different categories was used as primary data for the content analysis. Our analysis found that dividends declared by companies were largely guided by the board’s long-term strategy. Further, looking from the investors’ perspective, having in place a dividend distribution policy for companies has probably not addressed their needs.