Impact of Dividend on Investment Decision In Pakistan

Abstract

This study has aimed to investigate the impact of dividend on investment decision in Pakistan. This study has considered dividend per share and dividend policy, representing dividend, as independent variables. Whereas, investment decisions in terms of cash has been considered as the dependent variable. Textile sector of Pakistan has been the sector chosen for testing the relationship between dividend (dividend per share and dividend policy) and investment decisions in terms of cash. Structured questionnaire based on 5 Likert scale has been the research instrument used within this study for collection of data from respondents (investors associated with textile sector of Pakistan). A sample size of 150 respondents to represent the entire population has been finalized. Questionnaires were distributed amongst investors of textile sector of Pakistan to gather the data. Collected data has then been analyzed through statistical instruments such as correlation and regression by using SPSS Software. Based on the findings, it has been concluded that dividend (dividend per share and dividend policy) has significant impact on investment decisions in tenns of cash in Pakistan.