Abstract:
The present research examines the significance of dividend policy on firm value in the context of Colombo Stock
Exchange (CSE) listed consumer durable and apparel companies. In this industry, the study selected and investigated
15 businesses during a five-year period from 2018 to 2022. As independent factors, dividend payout ratio and dividend
per share had a major impact on the dependent variable, firm value. The research used a methodology and carried out
in-depth regression and correlation analysis to test the proposed hypotheses. The investigation’s findings provided
important new information about the dynamics of dividend policy and how it affects corporate value. Two of the study’s
hypotheses were found to have empirical validity after a careful analysis of the data. These results have implications for
investors, financial analysts, and regulators that go beyond their theoretical context. By clarifying the complex relationship
between dividend policy and company value in the particular context of Consumer Durables and Apparel companies in
the CSE, the research adds to the body of knowledge already in existence. Furthermore, this research contributes to our
comprehension of the complex relationships between dividend policy and business value and provides useful insights for
financial industry stakeholders. The established theories emphasize the significance of dividend payout ratio and dividend
per share as important factors influencing the value of businesses in the studied industry
