Demographic determinants and preference regarding dividend announcements - a study of selected individual investors

Abstract

The purpose of this paper is to analyse the effect of demographic determinants on the preferences of individual investors regarding dividend announcements in Punjab (India). Based on a sample of 500 individual investors, one-way ANOVA, t-test and Levene's test were conducted to find out which demographic variables were associated with the individual's preferences regarding dividend announcements. The results of the research show that the preferences of investors vary/differ based on factors such as age, marital status, occupation, income, and education. The findings of the study have implications for policymakers and financial service providers. Though the demographic and their preferences regarding dividend announcements have been extensively researched in the literature globally as well as in India, there has been scant empirical research on the financial consumer preferences in Punjab. This study fills this gap and is the first of its kind on the preferences regarding the dividend announcement of investors in Punjab.