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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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Journal ArticleDOI

Clustering in dividends: Do managers rely on cognitive reference points?

Walter Aerts, +2 more
- 01 Jun 2008 - 
TL;DR: In this article, the authors performed a digital analysis on US firms' DPS for the period 1995-2004 and found that managers fall back on cognitive reference points when they set DPS, which shows in significantly more (fewer) zeroes (large digits) in the second-from-the-left position of DPS than would normally be expected.
Journal ArticleDOI

Demand for Dividends: The Case of UK Water Companies

Seth Armitage
- 01 Apr 2012 - 
TL;DR: The authors argued that the large regular dividends are explained primarily by a demand for dividends on the part of investors, and that there are institutional or behavioural reasons for the demand, and there has been no clear tax motive for the companies' regular dividends.
Journal ArticleDOI

Intra‐industry conformity in dividend policy

Tom Van Caneghem, +1 more
- 10 May 2011 - 
TL;DR: In this paper, the impact of intra-industry conformity tendencies on dividend policy among a large sample of US firms was studied, and the results indicated that higher similarity in dividend payout among firms in the same industry induces more conformity between a focal firm and average industry practice.
Journal ArticleDOI

When cutting dividends is not bad news: The case of optional stock dividends ☆

Thomas David, +1 more
- 01 Oct 2016 - 
TL;DR: This article found that highly leveraged firms with limited cash holdings and large institutional ownership are more likely to offer optional stock dividends to their hareholders, and that shareholders overwhelmingly approve optional stock dividend at general meetings with the majority favoring stock dividends over cash dividends.
Journal ArticleDOI

Ownership Structure of Iranian Evidence and Payout Ratio

Seyed Jalal Sadeghi Sharif, +2 more
- 17 Jun 2010 - 
TL;DR: In this article, the authors identify and analyze the influence of shareholder ownership identity on payout ratio for a panel of Iran firms from 2002 and 2008 and find that there is a significant positive correlation between institutional ownership and payout ratio.
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.
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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 ).