Analysis of Factors Affecting Stock Price Behaviour: A Study on Listed Companies in Bombay Stock Exchange

: Dividend is the portion of profit which is being taken from corporate profits of the company after retaining the amount for further investment (retained earnings). Dividend Policy is influenced by various factors i.e. external as well as internal. Dividend policy is associated with the profitability positioning of the company. This research is an attempt to analyze the effect of different determinants on the market price of the share in context of Indian economy. Seven specific variables namely Return on Equity, Dividend Per Share, Earning Per Share, Dividend pay out ratio, Debt equity Ratio, Total asset turnover ratio and Dividend Yield has been analyzed to see their effect on Market Price Per Share. After analyzing the result of Market Price Per Share the dividend policy can be made or can have alterations in it.  For the purpose of study the data for the period 2011-12 to 2015-16 has been analyzed by using the statistical tools. Correlation, Muticollinearity and regression Analysis concept has been tested in this research. This study is limited to the time period of 5 years and only 31 companies has been considered. The results can show the variations if the number of companies and time period is being increased.