Individual Investors Perception of Dividends: Pakistan's Perspective

Actual Problems of Economics, Vol. 2, No. 4, 2012

7 Pages Posted: 16 Aug 2012

See all articles by Muhammad Naeem Akhtar

Muhammad Naeem Akhtar

affiliation not provided to SSRN

Ahmed Imran Hunjra

University of Waikato; Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS)

Arif Andleeb

affiliation not provided to SSRN

Babar Zaheer Butt

Foundation University

Date Written: August 16, 2012

Abstract

This research paper argue that there exists a strong preference for dividends among investors. The main purpose is to find the factors that lead individual investors to reveal their preference for either cash or stock dividends. The most important dividend theories are employed to test the behavior of Pakistani individual investors towards dividends. The results reveal strong evidence that individual investors in Pakistan want dividends either in the form of cash or stocks. They also have a strong preference for dividend even if a company has to pay it by borrowing.

Keywords: cash dividend, stock dividend, dividend theories, behavioral finance, investor perception

Suggested Citation

Akhtar, Muhammad Naeem and Hunjra, Ahmed Imran and Andleeb, Arif and Butt, Babar Zaheer, Individual Investors Perception of Dividends: Pakistan's Perspective (August 16, 2012). Actual Problems of Economics, Vol. 2, No. 4, 2012. Available at SSRN: https://ssrn.com/abstract=2130327

Muhammad Naeem Akhtar

affiliation not provided to SSRN ( email )

Ahmed Imran Hunjra (Contact Author)

University of Waikato ( email )

Te Raupapa
Private Bag 3105
Hamilton, 3240
New Zealand

Pir Mehr Ali Shah Arid Agriculture University Rawalpindi (PMAS) ( email )

Muree Road Rawalpindi
Shamsabad, Punjab 44000
Pakistan
00923457162527 (Phone)

Arif Andleeb

affiliation not provided to SSRN

Babar Zaheer Butt

Foundation University ( email )

islamabad
Pakistan

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