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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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La politique de dividende permet-elle de discipliner les dirigeants ?,

Michel Albouy, +1 more
TL;DR: In this article, le analysis approfondie de la litterature montre cependant que la politique de dividende ne constitue pas un mecanisme efficace de gouvernance.

Diferença de preços entre as ações ordinárias e preferenciais: influência dos fatores governança corporativa, liquidez e política de dividendos price difference between common and preferred shares: influence of factors of corporate governance, liquidity and dividend politics

Paulo Sergio Ceretta, +1 more
TL;DR: In this paper, the authors identify the influence of corporate governance, liquidity and dividend policy of the price difference between the common and preferred shares of Brazilian companies listed on Bovespa.
Journal ArticleDOI

Seeking Safety in Hard Times: Dividends and Insecurity

Vahap Bülent Uysal, +1 more
- 05 Oct 2010 - 
TL;DR: In this paper, the existence of pro-dividend fads and their effect on stock valuations was examined and it was shown that investors value dividend paying stocks more highly than non-paying stocks when investors perceived their financial well-being to be low.
Dissertation

Analyses of the shareholder benefit program in Japan

Taeko Yasutake
Book ChapterDOI

The Drivers of Dividend Policies in Europe

Giuseppina Chesini, +1 more
TL;DR: In this paper, the authors study the determinants of dividend payments for companies included in nine European stock market indexes for the period 2001-14 (panel data) and find that there are still many drivers of companies' dividend policies, confirming the Black's "dividend puzzle" (J Portf Manag 2(2):5-8, 1976).
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 ).