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

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
COLLEGE OF ACCOUNTANCY & FINANCE
DEPARTMENT OF BANKING & FINANCE[pic 1]

STA. MESA, MANILA

IMPACT OF DIVIDENDS ON INVESTMENT DECISION AS ASSESED BY STOCK INVESTORS FROM DIFFERENT INVESTORS’ FACEBOOK GROUP

A Research
Presented to the Faculty of the Department of Banking and Finance
Polytechnic University of the Philippines
Sta.Mesa, Manila

In partial fulfillment of the Requirements for the FINA 3073
Methods of Research

By:

Estrella, Dorotea

Espiritu, Lemuel Zandro

Garcia, Beatrix

Garcia, Mary Joy

Gulla, Mikka

Orejola, Arianne Michelle

San Jose, Adrian

San Jose, Ana Anaea

March 2017

ACKNOWLEDGEMENT

The researchers dedicate the success of this research to the following persons.

Prof. Melvin Jason S. De Vera, the research adviser who had given his bests to supervise the researchers.

The parents and guardians of the researchers, for supporting, financially, physically and morally the researchers.

Most of all, the Almighty God, for giving the strength, knowledge, wisdom and courage the researchers need in order to fulfill this study.

TABLE OF CONTENTS

Title Page

Acknowledgement

Table of Contents

List of Tables

Chapter I: The Problem and its Background

1. Introduction
2. Background of the Study
3. Statement of the Problem
4. Statement of the Objectives
5. Hypothesis
6. Conceptual Framework
7. Significance of the Study
8. Scope and Limitations of the Study
9. Definition of Terms

Chapter II: Review of Related Literature and Studies

1. Related Literature

1. Local Literature
2. Foreign Literature

1. Related Studies

1. Local Studies
2. Foreign Studies

1. Synthesis

Chapter III: Methodology

1. Research Design
2. Respondents of the Study
3. Size of the Respondents
4. Locale of the Study
5. Instrumentation
6. Validation of Research Instrument
7. Data gathering Procedure
8. Statistical Treatment of Data

Chapter IV: Presentation of Data

        Tabulation of Data

Chapter V: Summary of Findings, Conclusion and Recommendation

1. Summary of Findings
2. Conclusion
3. Recommendation

Bibliography

Appendices

1. Survey Questionnaire
2. Manual Tally of Data

LIST OF TABLES

Table 4.1.1 Frequency and Percentage Distribution of the Respondents in terms of Gender

Table 4.1.2 Frequency and Percentage Distribution of the Respondents in terms of Civil Status

Table 4.1.3 Frequency and Percentage Distribution of the Respondents in terms of the Length of Investment Experience

Table 4.1.4 Frequency and Percentage Distribution of the Respondents in terms of their Monthly Salary

Table 4.1.5 Frequency and Percentage Distribution of the Respondents in terms of who have received dividends and who owns/have owned stocks that pay/paid dividends respectively

Table 4.1.6 Frequency and Percentage Distribution of the Respondents' knowledge about investing in the stock market; 1 being the lowest and 5 being the highest.

Table 4.1.7 Frequency and Percentage Distribution of the Respondents in terms of how often respondents invest in selected company.

Table 4.1.8 Frequency and Percentage Distribution of the Respondents in terms of the kind of industry respondents are investing in.

Table 4.1.9 Frequency and Percentage Distribution of the Respondents' sources in making decision on investing in a certain stock.

Table 4.1.10 Frequency and Percentage Distribution of the Respondents in terms of the aspect/s of the company respondents consider when buying a stock.

Table 4.1.11 Frequency and Percentage Distribution of the Respondents in terms of the factors that influence the respondents when selling shares from the company/companies.

Table 4.1.12 Frequency and Percentage Distribution of the Respondents in terms of the investor's likeness in stocks that pay dividends.

Table 4.1.13 Frequency and Percentage Distribution of the Respondents in terms of the type of dividend the respondent's prefer to receive.

Table 4.1.14 Frequency and Percentage Distribution of the Respondent's top consideration in buying stocks that pay dividends.

Table 4.1.15 Frequency and Percentage Distribution of the Respondents in terms of the reasons respondents are investing in stocks that pay dividends.

CHAPTER I

The Problem and Its Background

        Investment is the process performed by an investor of purchasing a stock, bond, certificate of deposit, commodity, real estate or another investment vehicle with the expectation of earning a positive financial return over time. There are many reason why people engaged in investment and different factors they are considering in investing such as stock prices, economic status, company background and even dividend payout.

        This study aims to determine the impact of dividends in investment decision of selected investors from the union of investors in Facebook. The researchers will distinguish how dividends affect the stock-picking strategies of the investors.

        The result of this study will help the future investors to decide on choosing a good investment considering the companies’ background of dividend payout through a banker’s point of view.

Investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or will be sold at a higher price for a profit. There are many reason why people engaged in investment and different factors they are considering in investing such as stock prices, economic status, company background and even dividend payout.