DIVIDEND PREFERENCE: A SURVEY OF UNDERGRADUATE STUDENTS

• Main Author: Hersan (19015014), Febianti
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27249
• Institution: Institut Teknologi Bandung

The classical finance theory has been developed into behavioral finance theory by the end of 1990s. Due to this behavioral finance theory, psychology also affects the financial decision of investors. Therefore, investors must have their own preference while choosing investments. According to this theory, this research proved that the preference, especially in case of dividend is actually occurred in capital market. There are some dividend theories that try stated the reason behind this dividend preferences. But still, these theories cannot fully describe the cause of dividend preference. Hereinafter, this research proves that beside all the dividend theories there are some personal factors which affect the dividend preference. <br /> <br /> This research conduct a survey of undergraduate students in SBM ITB. The data gathered is processed using multiple linear regression and logistic regression. There are three factors examined, demographic profile, investment behavior, and financial education. As the result, demographic profiles such as investment experience and income are significantly affect dividend preference. But, investment risk behavior is not significantly affects dividend preference. Furthermore, financial education, especially financial literacy also significantly affects dividend preference. Finally, the researcher also hoped that there are many studies in the future examine about personal dividend preference and help to contribute in solving the dividend preference controversy.