ABIMS Bulletin

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Journal


Title   Individual Perception Towards Dividend: A Study on Dhaka Stock Exchange
Author's Name   Mohammad Shahidul Islam, Mohammad Sarowar Khaled and Sheikh Kamal Ahmed
ISSN   0974-7281
Page(s)   9- 18
Volume No.   8
Issue Month   July 2016
Keywords   Dividend, Perception, Investors, Factors.
Abstract   The core of dividend policy includes the decision like whether it distributes profits to the shareholders in the form of dividend or to retain it in the form of retained earnings. Dividend policy adopted by a firm has interference in the practical life for all whether it is manager or the organization’s stakeholders. The current study is an attempt to bring about the investor’s perception as to dividend. For achieving this objective, sample size of 60 individual respondents has been selected and the analysis was carried out using Factor analysis in order to capture the investors’ perception as to dividend. The result of the analysis has discovered eight underlying factors such as forms of dividend, Risk Factor, External Financing Factor, Source of Income, Signaling Device factor, Desire for Stock and Right Issue Factor, Liquidity Factor, Investors’ Preference Factor on the basis of which investors make the perception about the dividend payment. The study has suggested that the policy maker of a company should be aware of the preferences of the individual investors for dividend decision making.



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