Individual Investors Perception of Dividends: Pakistan's Perspective
Actual Problems of Economics, Vol. 2, No. 4, 2012
7 Pages Posted: 16 Aug 2012
Date Written: August 16, 2012
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
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