Role of Ratio Analysis to Ensure the Impact of Dividend Policyon Firm Performance

In the present study the researcher explain the several theories about the influence of dividend policy on performance of firms. Researchers were examined such theories in the perspective of the firms which are undergo virtually by the discussion in order to determine the key drivers which show a vital role on determining the firms performances. Would be served merely an individual factor which has as whole influenceon financial performance of the company and it can be the number of dividends that may have a collectiveinfluence of the as whole performance of the firms. In this work, the researcher tried to determine the main indicators of their influence on performances of the company and is also embedded in the dividends policy of the company. The effect may be negative or positive according to the nature of the determinant. In this work, researcher took the sample of 400 firms, and the data is secondary. Ratios were calculated for all companies in that basically determining the dividend policy and therefore the correlation tests have been running for observe if the results are relevant or not. In conclusion, researcher told the variables which play asignificant role in examining the performances of enterprises.