Impact of Dividends on Investment Decision as Assesed by Stock Investors from Different Investors’ Facebook Group

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Statement of the Problem:

General Problem:

What is the impact of the dividends on investment decision as assessed by Investors from different Investors’ Facebook Groups?

Specific Problem:

1. What is demographic profile of the respondents? As to:

A. Name

B. Age

C. Gender

D. Civil status

E. Length of Investment Experience

F. Estimated Monthly Income

2. What type of dividends do respondents prefer the most?

A. Cash Dividends

B. Stock Dividends

C. Property Dividends

D. Scrip Dividends

E. Liquidating Dividends

3. Aside from dividends what other factors influence investors' decision?

A. Company Name

B. Stock Price

C. Sector

4. What are the investing practices of the respondents?

Hypothesis

This study aims to answer the null hypothesis.

There are no significant impact of dividends on the investment decisions of the investors.

Conceptual Framework[pic 2]

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Significance of the Study

The study will give a brief description on the impact of dividends in investment decision of selected investors from the union of investors in Facebook.

- To the Investors

For the current investors, this study will lead to reassessment of their investing activities which will be beneficial in considering new investment. This study will also help the investors to determine whether dividend is a factor to consider in investing in the stock market.

- To the Society

The conclusion of the study can encourage non-investors to venture on investments even though they have limited knowledge about investing because it is managed by professional/ licensed fund managers

- To the Readers

This study will help other non-investors to be financially literate. Also, to be use in the future and may add to their knowledge in handling their finances.

- To the Future Researchers

For the researchers, the study will help them uncover critical areas in investment pattern that many finance students were not able to explore. Moreover, this will serve as future reference for researchers who will conduct study on similar field.

Scope and Limitation of the Study

This study will discuss about the impact of dividends in investment decision of selected investors from the union of investors in Facebook. The aspects considered are the demographic profile of the respondents, their monthly income, their work and company of the investor. The respondents will answer the questions in the survey to be conducted by the researchers.

This study is only limited to the stock market investors who joined the union of investors in Facebook and those who are residing in the Philippines.

Definition of Terms

- Stock Market- the market for stocks throughout a country.

- Dividend- An amount of a company’s profits that the company pays to people who own stock in the company.

- Income- Money that is earned from work, investments, business, etc.

- Investor- The one who commit money in order to earn a financial return

- Corporation- A large business or organization that under the law has the rights and duties of an individual and follows a specific purpose

- Equities- The value of a piece of property after debts that remain to be paid for it have been subtracted.

CHAPTER 2

Review of Related Literature and Studies

This Chapter presents the review of related literature and related studies. It includes foreign and local studies, foreign and local literature and some related legal bases.

Related Legal Bases

Announcement of Dividends by a Corporation is mandated by several laws in the Philippines. These laws are:

DIVIDEND POLICY OF THE PHILIPPINES

DIVIDENDS AND DIVIDEND POLICY Under Philippine law, dividends may be declared out of a corporation’s unrestricted retained earnings which shall be payable in cash, in property, or in stock to all stockholders on the basis of outstanding stock held by them. The amount of retained earnings available for declaration as dividends may be determined pursuant to regulations issued by the SEC. The approval of the board of directors is generally sufficient to approve the distribution of dividends, except in the case of stock dividends which requires the approval of stockholders representing not less than two-thirds (2/3) of the outstanding capital stock at a regular or special meeting duly called for the purpose.

RECORD DATE The Company’s By-laws provide that for purposes of determining the shareholders entitled to receive payment of any dividends, whether cash, property or stock, the Board may fix in advance a date as the record date for any such determination of shareholders. The said By-Laws likewise provide that, in connection with the determination of the shareholders entitled to receive payment of any dividend, the Board may provide that the stock and transfer book be closed for a period of 10 business days immediately preceding such meeting declaring the dividends. No shares of