Anil, Kanwal and Sujata Kapoor (2008) in their research paper titled "Determinants of dividend payout ratios
--A study of Indian Information Technology sector" published in International Resource Journal of Finance and Economics have tried to identify various factors like profitability , cash flows etc which influence the dividend payout ratio
in Information Technology sector in India in the current scenario.
Some evidence suggests that there is significant variation in dividend payout ratios
among industries [Baker (1988); Michel (1979)].
Using a relatively exogenous measure that incorporates state antitakeover laws and the differences-in-differences approach, our analysis indicates that dividend payout ratios
and propensities fall when managers are insulated from takeovers.
Hexter, Langrehr, and Holder (1998) concluded that corporate focus is negatively related to dividend payout ratios
Although dividend payouts are generally smaller for repurchasing firms, as compared to their industry peers, the dividend payout ratios
increase once the stock buyback program is over.
With the emergence of share repurchases and desire by firms to increase their financial flexibility, dividend payout ratios
, on average, are decreasing.
In this connection, after analyzing the implications of the TRA on individual and corporate investors, Ben-Horim, Hochman and Palmon |5^ predict that dividend payout ratios
should increase in the post-TRA period.