This study aims to determine the effect of dividend policy on investment decisions of a sample of individual investors settled at Western Mediterranean Region (Antalya, Burdur and Isparta) in Turkey. The survey method was employed within the study. Initially, the demographic features of the individual investors investing in stocks were examined. Then, the effect of firms' dividend policies on individuals' decisions on investing in stocks were elaborated. The findings of the study revealed that the men and married people prefer to invest in stocks more than women and singles, self-employed and retired people perceive stocks as an investment instrument, people who are at 26 to 49 years old invest in stocks more than the other age groups, and there is a positive ratio between the educational background, income and investing in stocks. Earnings per share, dividend policies in the previous
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