Empirical Study of behavioral factors influencing dividend considerations of Retail Individual Investors-Implications for organizations

Retail Individual investors are exposed for immense risk and uncertainty, post globalization due to increase in volatility and fluctuations. Retail individual investors behavior towards equity investment and their considerations of returns i.e. capital appreciation and regular income is also getting change. Investor's expectations and considerations of dividend are influenced by variety of behavioral factors. Bird in hand approach of dividend policy also explains the behavioral approach of the investors. Investors behavioral influence can be explained with clientele effect also which explain that different investors have different expectations and on the basis of their behavioral and cognitive influence they respond towards the dividend declarations. Retail individual Investors behavioral perspective is getting change due to change in behavior and psychology towards financial decision making. This research paper is an attempt to study and understand the behavioral factors influencing dividend considerations of retail individual investors in the present era of uncertainty. For the research work primary data will be gathered from the retail individual investors by formulating structured questionnaire and secondary data will also be collected from journals, websites, published research papers and news articles. Research work can assist in understanding and acknowledging the retail individual investors dividend expectations and considerations which may be utilized to promote more domestic retail equity investment in equities as well as to formulate the dividend policy of organizations.