Do Investors Value Dividend-Smoothing Stocks Differently?

• 成果类型: Article
• 署名作者: Larkin, Yelena; Leary, Mark T.; Michaely, Roni
• 署名单位: York University - Canada; Washington University (WUSTL); National Bureau of Economic Research; Cornell University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2016.2551
• 发表日期: 2017
• 页码: 4114-4136
• 关键词: dividend smoothing; payout policy; institutions

摘要

It is widely documented that managers strive to maintain smooth dividends. Yet, it is not clear if this behavior reflects investors' preferences. In this paper, we study whether investors indeed value dividend-smoothing stocks differently by exploring the implications of dividend smoothing for firms' investor clientele, stock prices, and cost of capital. We find that retail investors are less likely to hold dividend-smoothing stocks, while institutional investors, and especially mutual funds, are more likely. However, this preference does not result in any detectable relation between the smoothness of a firm's dividends and the expected return, or market value, of its stock. Together, the evidence suggests that firms adjust the supply of smoothed dividends to match investors' demand. Dividend smoothing affects the composition of a firm's shareholders but has little impact on its stock price.