A catering theory of dividends

• 成果类型: Article
• 署名作者: Baker, M; Wurgler, J
• 署名单位: Harvard University; National Bureau of Economic Research; New York University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2004.00658.x
• 发表日期: 2004
• 页码: 1125-1165
• 关键词: Investor sentiment; corporate-finance; market valuation; CASH DIVIDENDS; stock-market; INFORMATION; earnings; POLICY; INITIATIONS; taxation

摘要

We propose that the decision to pay dividends is driven by prevailing investor demand for dividend payers. Managers cater to investors by paying dividends when investors put a stock price premium on payers, and by not paying when investors prefer nonpayers. To test this prediction, we construct four stock price-based measures of investor demand for dividend payers. By each measure, nonpayers tend to initiate dividends when demand is high. By some measures, payers tend to omit dividends when demand is low. Further analysis confirms that these results are better explained by catering than other theories of dividends.