A Comparative Study on Large and Mid Cap with Reference to Impact of Dividend Policy and EPS on Share Price

Aditya Vilas Kale

Abstract: This study explores how earnings and dividend - related metrics such as EPS, DPS, DPO, and DY affect stock prices of Large - Cap and Mid - Cap companies. Large - Cap firms, being stable and focused on consistent dividends, may see stronger stock price reactions to dividend policies. In contrast, Mid - Cap companies, which are growth - oriented and reinvest more earnings, are likely to see stock prices more influenced by earnings potential. The research examines whether stock prices of these companies respond similarly or differently to these financial indicators, based on their market capitalization.

Keywords: Earnings Per Share (EPS), Dividend Per Share (DPS), Dividend Payout Ratio (DPO), Dividend Yield (DY), Large - Cap companies, Mid - Cap companies, Market capitalization