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Open AccessJournal ArticleDOI

Why individual investors want dividends

Ming Dong, +2 more
- 01 Dec 2005 - 
- Vol. 12, Iss: 1, pp 121-158
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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Determinants of corporate dividend policy in Greece

Theophano Patra, +2 more
- 12 Mar 2012 - 
TL;DR: In this article, the authors examined the determinants of corporate dividend policy of listed firms in Greece as a case study of an emerging market country and found that size, profitability and liquidity factors increase the probability to pay dividends.
Journal ArticleDOI

Effect of Dividends on Stock Prices– A Case of Chemical and Pharmaceutical Industry of Pakistan

Kanwal Iqbal Khan
- 01 Dec 2012 - 
TL;DR: In this article, an attempt to explicate the affect of d ividend announcements on stock prices of chemical and pharmaceutical industry of Pakistan has been made, where a fixed and random effect model is applied on Panel data to exp licate the relationship between dividends and stock prices after controlling the variables like earnings per share, profit after tax and return on equity.
Journal ArticleDOI

Investors' use of corporate reports in Bahrain

Jasim Al-Ajmi
- 20 Mar 2009 - 
TL;DR: In this article, the authors report the results of an investigation into individual investors' perceptions of the factors affecting buying, holding and selling of stock on the Bahrain stock exchange (BSE).
Journal ArticleDOI

Comparative performance of publicly listed construction companies: Australian evidence

Maria C. A. Balatbat, +2 more
- 15 Sep 2010 - 
TL;DR: In this article, the performance of publicly listed Australian construction companies, in comparison with other Australian listed companies, is compared with the Australian All Ordinaries Index and a portfolio of publicly-listed (blue chip) companies.
Journal ArticleDOI

Myopic loss aversion and stock investments: an empirical study of private investors

Boram Lee, +1 more
- 01 Sep 2016 - 
TL;DR: This paper investigated the link between myopic loss aversion and actual investment decisions of individual investors, using survey data and found that higher myopic risk aversion is associated with lower stock investment as a share of total assets.
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 ).