【正文】 m, wealth of shareholders of dividend paying chemical panies has increased significantly when pared to that of the dividend nonpaying counterparts, which further shows the impact of dividend policy on wealth creation. Hence H1 stands: “There is significant difference in average market value relative to book value of equity between dividend payers and nonpayers of (Organic and Inorganic) chemical panies in India.” . Relationship between Dividend Policy and Shareholders’ Wealth Dividend Paying Organic Chemical Companies Table 4: Results of Regression showing the Impact of Dividend Policy on Market Value of Equity of ALL DIVIDEND PAYING ORGANIC CHEMICAL COMPANIES in India. The impact of dividend policy on shareholders’ wealth of organic and inorganic chemical panies with adoption of dividend policy has been elicited using multiple regression analysis. The Dividend per share (DPS) has been used as proxy for measuring the dividend policy of the panies and Market value (MV) of equity of the panies under study is considered as proxy for measuring the shareholders’ wealth and used as dependent variable. Apart from DPS, Retained earnings (RE), lagged PriceEarning Ratio (PEt1) and lagged Market value of equity (MVt1) are also used as explanatory variables in order to know whether dividend policy of Organic and Inorganic chemical panies are dominated by these factors in influencing the creation of shareholders’ wealth. Table 4 shows the regression results for all selected organic chemical panies in India with regard to impact of initiating dividend payout on shareholders’ wealth. Perusal of the results indicates that the fit of all four models is significant at 1 per cent level (F = , p for model 1, F = , p for model 2, F = , p for model 3 and F = , p for model 4). Among the four models, F value for model 4 is very high. Further, the coefficients of DPS in all four models are highly significant at 1 per cent level and positive in sign (β = , t = , p in model 1。 wealth and the dividend payout and to analyze whether the level of dividend payout affects the wealth of the shareholders. 2. Statement of the Problems In India few studies have analyzed the relationship between the shareholders39。s stock price which leads to maximization of shareholders39。本科畢業(yè)論文（設(shè)計(jì)） 外 文 翻 譯 原文： The Impact of Dividend Policy on Shareholders’ Wealth 1. Introduction In an everincreasing Indian economy, globalization, liberalization and privatization together with rapid strides made by information technology, have brought intense petition in every field of activity. So, Indian panies at present are dazed, confused, and apprehensive. To maintain the petitiveness of, and add value to the panies, today’s finance managers have to make critical business and financial decisions which will lead to longrun perspective with the objective of maximizing the shareholders’ wealth. Shareholders’ wealth is represented in the market price of the pany’s mon stock, which, in turn, is the function of the pany’s investment, financing and dividend decision. Managements39。 wealth and thereby ensures more rapid economic growth. The present study is intended to study how far the dividend payout has impact on shareholders39。 wealth and dividend payment. Net earnings are divided into two parts – retained earnings and dividends. The retained ea