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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

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

A Survey of Management Views on Dividend Policy

H. Kent Baker, +2 more
- 23 Jan 1985 - 
Journal ArticleDOI

Estimating Risk Attitudes using Lotteries: A Large Sample Approach

Bas Donkers, +2 more
- 01 Jan 2001 - 
TL;DR: In this paper, an index for risk aversion is estimated based on questions on lotteries in a large household survey and a structural model based on Cumulative Prospect Theory is proposed.
Journal ArticleDOI

Stock Repurchases in Canada: Performance and Strategic Trading

David L. Ikenberry, +2 more
- 01 Oct 2000 - 
TL;DR: In this paper, the authors study new evidence from the 1990s for 1,060 Canadian repurchase programs and find that the Canadian stock market discounts the information in repurchase announcements, particularly for value stocks.
Journal ArticleDOI

Corporate governance and dividend pay-out policy in Germany

Klaus Gugler, +1 more
- 01 Aug 2003 - 
TL;DR: In this article, the authors analyze 736 dividend change announcements in Germany over the period 1992-1998 and find significantly larger negative wealth effects in the order of two percentage points for companies where the ownership and control structure makes the expropriation of minority shareholders more likely than for other firms.
Journal ArticleDOI

The Savings Investment and Valuation of a Corporation

Myron J. Gordon
- 01 Feb 1962 - 
TL;DR: In this article, the authors present a theory of the investment and valuation of a corporation analogous to the neo-classical theory without the assumptions that the future is known with certainty and with minor qualifications that funds are freely available at a given rate of interest.
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 ).