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Why individual investors want dividends

Ming Dong, +2 more
- 01 Dec 2005 - 
- Vol. 12, Iss: 1, pp 121-158
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TLDR
In this paper, the question of why individual investors want dividends was investigated by submitting a questionnaire to a Dutch investor panel, and the respondents indicated that they want dividends partly because the cost of cashing in dividends is lower than the cost for selling shares.
About: 
This article is published in Journal of Corporate Finance.The article was published on 2005-12-01 and is currently open access. It has received 81 citations till now. The article focuses on the topics: Dividend policy & Corporate finance.

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The perception of dividends by Canadian managers: new survey evidence

H. Kent Baker, +3 more
- 23 Jan 2007 - 
TL;DR: The most important factors influencing dividend policy are the level of current and expected future earnings, the stability of earnings, and the pattern of past dividends, according to survey results as mentioned in this paper.
Journal ArticleDOI

Dividend payouts: evidence from U.S. bank holding companies in the context of the financial crisis

José Filipe Abreu, +1 more
- 01 Sep 2013 - 
TL;DR: In this paper, the authors studied dividend payouts of 462 U.S. bank holding companies before and during the 2007-09 financial crisis and found that regulatory pressure was ineffective in limiting dividend payout by under-capitalized banks before the financial crisis.
Journal ArticleDOI

The Risk Perceptions of Individual Investors

Chris Veld, +1 more
- 31 May 2007 - 
TL;DR: In this paper, the authors studied the risk perceptions of individual investors by asking experimental questions to 2,226 members of a consumer panel and analyzed their responses in order to find which risk measures they implicitly use.
Journal ArticleDOI

The risk perceptions of individual investors

Chris Veld, +1 more
- 01 Apr 2008 - 
TL;DR: In this paper, the authors studied the risk perceptions of individual investors by asking experimental questions to 2226 members of a consumer panel and analyzed their responses in order to find which risk measures they implicitly use.
Journal ArticleDOI

Tax reform and payout policy: Do shareholder clienteles or payout policy adjust?

Timo Korkeamäki, +3 more
- 01 Sep 2010 - 
TL;DR: In this paper, the authors explore the effect of tax reform on the distribution of corporate dividends in Finland and find that Finnish firms altered their dividend policies based on the changed tax incentives of their largest shareholders.
References
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Journal ArticleDOI

The Discovery of Grounded Theory: Strategies for Qualitative Research.

Helmut R. Wagner, +2 more
- 01 Jun 1968 - 
Posted Content

Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers

Michael C. Jensen
- 01 Jan 1986 - 
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Journal ArticleDOI

Corporate financing and investment decisions when firms have information that investors do not have

Stewart C. Myers, +1 more
- 01 Jun 1984 - 
TL;DR: In this paper, a firm that must issue common stock to raise cash to undertake a valuable investment opportunity is considered, and an equilibrium model of the issue-invest decision is developed under these assumptions.
Journal ArticleDOI

Dividend Policy, Growth, and the Valuation of Shares

Merton H. Miller, +1 more
- 01 Jan 1961 - 
TL;DR: In this paper, the effect of differences in dividend policy on the current price of shares in an ideal economy characterized by perfect capital markets, rational behavior, and perfect certainty is examined.
Journal ArticleDOI

The theory and practice of corporate finance: Evidence from the field

John R. Graham, +2 more
- 01 May 2001 - 
TL;DR: The authors survey 392 CFOs about the cost of capital, capital budgeting, and capital structure and find some support for the pecking-order and trade-off capital structure hypotheses but little evidence that executives are concerned about asset substitution, asymmetric information, transactions costs, free cash flows, or personal taxes.
Frequently Asked Questions (2)
Q1. What contributions have the authors mentioned in the paper "Why individual investors want dividends" ?

In this paper, the question of why individual investors want to pay dividends was investigated by submitting a questionnaire to a Dutch investor panel, and the results indicated that individual investors do not tend to consume a large part of their dividends. 

The authors do not find much support for the “ irrational ” explanations of the existence of dividends, i. e. the uncertainty resolution theory of Gordon ( 1961, 1962 ) and the behavioral explanation of Shefrin and Statman ( 1984 ).