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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 Relative Signalling Power of Dutch-Auction and Fixed-Price Self-Tender Offers and Open-Market Share Repurchases

Robert Comment, +1 more
- 01 Sep 1991 - 
TL;DR: The authors compare three forms of common stock repurchases: Dutch-auction self-tender offers, open-market share repurchase programs, and fixed-price self-to-buyback offers and show that buyback announcement returns are higher when insider wealth is at risk, following negative net-of-market stock returns, and unrelated to prior market returns.
Journal ArticleDOI

Explaining investor preference for cash dividends

Hersh Shefrin, +1 more
- 01 Jun 1984 - 
TL;DR: The well-known tendency of investors to favor cash dividends emerges quite naturally in two new theories of choice behavior [the theory of self-control due to Thaler and Shefrin (1981), and the version of prospect theory set out by Kahneman and Tversky (1979].
Posted Content

Financial Decision-Making in Markets and Firms: A Behavioral Perspective

Werner F. M. De Bondt, +1 more
- 01 Jan 1994 - 
TL;DR: A review of recent work in behavioral finance can be found in this article, where a series of key behavioral concepts, e.g., people's well-known tendencies to give too much weight to vivid information and to show excessive self-confidence, are discussed.
Journal ArticleDOI

Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment

Klaus Gugler
- 01 Jul 2003 - 
TL;DR: In this paper, the authors investigated the relationship between dividends and the ownership and control structure of the firm and found that firms with low growth opportunities optimally disgorge cash irrespective of who controls the firm.
Journal ArticleDOI

The Effects of Dividends on Common Stock Prices Tax Effects or Information Effects

Robert H. Litzenberger, +1 more
- 01 May 1982 - 
TL;DR: In this article, it is shown that there is a positive and non-linear relationship between common stock returns and expected dividend yield, which cannot be attributed to the favorable or unfavorable information that would be present in a proxy for expected dividend yields that anticipates the occurrence or lack thereof of a dividend.
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 ).