Dividends Policies Utilized by Palestinian Corporations and Investors’ Preference in regard of these Policies

Abstract

The aim of the study is to be acquainted with dividends policies utilized

by Palestinian corporations and to get these policies compared with policies

used in other countries, in addition to investorsʼ preference in regards to

these policies.

The study used a descriptive approach. Data was gathered through a

questionnaire submitted to investors in the corporations used as the sample

of the study.

The study adopted three hypotheses that pertain to investorsʼ age, gender

and size of investment to discuss the impact of these variables on investorsʼ

preferences.

The study concluded that investors prefer the periodic distribution of

dividends and stocks dividends. On the other hand, fixed dividends policy,

the percentage dividends of net profit and the policy of no distribution of

dividends are not preferred by investors. As perceived by corporations, the

study concluded that the preferred policy is not to distribute the dividends.

The study also showed that there are no statistically significant differences

due to the size of investment, age or gender of investor.

Finally, the study gave a number of recommendationsʼ, the major one was

calling the corporations to use the distribution policies which are preferred

by investors.