Impact of Stock Dividend on Buying Behaviour of Investors in Nepal
Keywords:
Stock dividend, Cash dividend, Investors, Initial public offerings (IPO), Buying behaviorAbstract
A study was accompanied to investigate the impact that stock dividend announcements have on investment decisions in Nepal. The aim of the research was to compare and contrast the two, investigate the connection between the two, and analyze the impact that stock dividend announcements have on the purchasing decisions of investors in Nepal Stock Exchange (NEPSE). When we wanted to get a sense of how people felt about the survey, we sent out fifty paper questionnaires between the first august to the thirty-first August and asked them to fill it out via Messenger, Facebook, email, WhatsApp, and Viber. The survey was successfully completed by 115 individuals. Out of the total of 115 responses, only 105 were considered to be valid. At the end of the day, there were 105 individuals that participated in the survey. A link that was determined to be positive and statistically significant between stock dividends and the spending patterns of investors was ultimately discovered. A significant number of investors saw a business that distributed dividends as a financially secure and risk-free investment, and because to this perception, they were prepared to pay a higher price for a bigger stake of the company. In addition, investors regarded dividends as a method to increase the value of their stocks rather than having to withdraw cash in order to make a capital gain. A number of investors exclusively invest in order to get dividends in the form of cash or equities. In general, it proved that dividends have a considerable impact on the decisions that investors make regarding where to invest and what to buy. Another noteworthy finding from the study was that the stock dividends that were distributed by companies that were listed on the NEPSE were the most influential factor for investors. Additionally, the announcement of a stock dividend is a source of excitement for investors, and it accelerates our stock market to new heights in the Nepalese stock market.
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