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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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Journal ArticleDOI

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 effects of dividend yield and dividend policy on common stock prices and returns

Fischer Black, +1 more
- 01 May 1974 - 
TL;DR: In this article, the authors argue that the best method for testing the effects of dividend policy on stock prices is to test the effect of dividend yield on stock returns, and they argue that it is not possible to demonstrate, using the best available empirical methods, that the expected returns on high-yield common stocks differ from the expected return on low-yielding common stocks either before or after taxes.
Journal ArticleDOI

Payout Policy in the 21st Century

Alon Brav, +5 more
- 01 Nov 2005 - 
TL;DR: The authors survey 384 financial executives and conduct in depth interviews with an additional 23 to determine the factors that drive dividend and share repurchase decisions, finding that maintaining the dividend level is on par with investment decisions, while repurchases are made out of the residual cash flow after investment spending.
Journal ArticleDOI

Financial flexibility and the choice between dividends and stock repurchases

Murali Jagannathan, +2 more
- 01 Sep 2000 - 
TL;DR: In this paper, the authors measure the growth in open market stock repurchases and the manner in which stock repurchase and dividends are used by U.S. corporations, and find that stock buybacks are very procyclical, while dividends increase steadily over time.
Journal ArticleDOI

Taxes, market valuation and corporate financial policy

Michael J. Brennan
- 01 Dec 1970 - 
TL;DR: In this article, the authors extend their analysis to incorporate the effects of those features of the personal tax structure which are relevant for the valuation of the corporation, which is the complementary aspect of the system.
Book ChapterDOI

Chapter1. A Survey of Behavioral Finance

Nicholas Barberis, +1 more
- 01 Jan 2003 - 
TL;DR: Behavioral finance as mentioned in this paper argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational, and argues that it can be difficult for rational traders to undo the dislocations caused by less rational traders.
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 ).