Dividend Policy determines whether company will going to distribute its earning or self finance the dividend through the retained earnings. Dividend Policy always has been identified as an integral part of the company’s Financial Policy determination. This have an empirical impact on the company’s decision making since it has two broad areas on which it directly impact. The first one is Investments made by the investors in the company and by the company, and the second one is the financing decision which is taken by the company for financing it capital. Over a period of 2 decade, especially after the recession of 2008, it attracted the attention of researchers, analyst, academics and various corporate practitioners. Even after the long study on Dividend policy from different aspect still inconclusive results have been shown over the period. The one major factor which has been accepted throughout the world economy is Dividend policy is as such not of very important or rather to say not at all important but in competitive economy it plays a vital role. This study has been taken with object to find out the effect of Corporate Dividend Policy on market value of the company and effect of the dividend on share prices in the market. For the purpose of this study various statistical techniques have been used to analyze the data of different nature companies including Banking Sector, Information Technology, Pharmaceuticals and some other sectors. Based on the study that the net profit and Equity dividend has been found as the most critical factor to be the part of Dividend Policy. However both factors do not have similar impact in all industries. Their impact varies industry to industry.

KEYWORDS: Dividend Policy, Market Value, Equity, Cash Dividend, Market Capitalization.