Akhtar, Muhammad Naeem and Hunjra, Ahmed Imran and Andleeb, Arifa and Butt, Babar Zaheer (2011): Individual investors perception of dividends: Pakistan’s percpective. Published in: ACTUAL PROBLEMS OF ECONOMIICS , Vol. 2, No. 4 (2012): pp. 193-199.
Download (77kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Individual investors perception of dividends: Pakistan’s percpective|
|Keywords:||cash dividend; stock dividend; dividend theories; behavioral finance; investor perception|
|Subjects:||E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy|
|Depositing User:||Ahmed Imran Hunjra|
|Date Deposited:||16. Aug 2012 09:45|
|Last Modified:||19. Jan 2015 18:28|
Ahmed, H., Attia, J. (2009). Dynamics and Determinants of Dividend Policy in Pakistan (Evidence from Karachi Stock Exchange Non Financial Firms). International Journal of Finance and Economics, 25: 148–171.
Al_Malkawi, H.A.N. (2007). Determinants of Dividend Policy in Jordan. An application of Tobit Model. Journal of Economic and Administrative Sciences, 23(2): 44–70.
Anil, K., Sujata, K. (2008). Determinants of dividend payout ratio – A study of Indian Information Technology Sector. International Research Journal of Finance and Economics, 15: 63–71.
Baker, H.K., Farrelly, G.E., Edelman, R.B. (1985). A survey of management views on dividend policy. Financial Management, 14: 78–83.
Baker, M., Wurgler, J. (2004). Appearing and disappearing dividends: The link to catering incentives. Journal of Financial Economics, 73: 271–88.
Brav, A., Graham, J.R., Harvey, C.R., Michaely, R. (2004). Payout policy in the 21st century. Journal of Financial Economics, 77(3): 483–527.
DeBondt, W.F.M., Thaler, R.H. (1995). Financial decision making in markets and firms: a behavioral perspective. In: R. Jarrow, V. Maksimovic and W.T. Ziemba (Eds.). Finance. Handbooks in Operations Research and Management Science. Pp. 385–410.
Dong, M., Robinson, C., Veld, C. (2005). Why individual investors want dividends. Journal of Corporate Finance, 12(1): 121–158.
Fama, E.F., French, K.R. (2001). Disappearing dividends: changing firm characteristics or lower propensity to pay? Journal of Financial Economics, 60: 3–43.
Gordon, M.J. (1961). The Investment, Financing, and Valuation of the Corporation, Homewood, IL: Richard D. Irwin.
Grullon, G., Michaely, R. (2002). Dividends, share repurchases, and the substitution hypothesis. The Journal of Finance, 57: 1649–1684.
Kumar, J. (2006). Corporate Governance and Dividend Policy in India. Journal of Emerging Market Finance, 5(5): 15–58.
Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings, and taxes. American Economic Review, 46: 97–113.
Maditinos, I.D., Sevic, Z., Theriou, N.K., Tsinani, A.V. (2007). Individual investors perception towards dividend. International journal of monetary economics and finance, 1(1): 18–31.
Miller, M., Modigliani, F. (1961). Dividend policy, growth and the valuation of shares. Journal of Business, 34: 411–433.
Shefrin, H., Statman, M. (1984). Explaining investor preference for cash dividends, Journal of Financial Economics, 13(2): 253–282.