Local Dividend Clienteles

• 成果类型: Article
• 署名作者: Becker, Bo; Ivkovic, Zoran; Weisbenner, Scott
• 署名单位: Harvard University; Michigan State University; University of Illinois System; University of Illinois Urbana-Champaign; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2010.01645.x
• 发表日期: 2011
• 页码: 655-683
• 关键词: DISAPPEARING DIVIDENDS; payout policy; STOCK; familiarity; INVESTMENT; geography; distance; GROWTH; matter

摘要

We exploit demographic variation to identify the effect of dividend demand on corporate payout policy. Retail investors tend to hold local stocks and older investors prefer dividend-paying stocks. Together, these tendencies generate geographically varying demand for dividends. Firms headquartered in areas in which seniors constitute a large fraction of the population are more likely to pay dividends, initiate dividends, and have higher dividend yields. We also provide indirect evidence as to why managers may respond to the demand for dividends from local seniors. Overall, these results are consistent with the notion that the investor base affects corporate policy choices.