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Journal article
Do senior citizens prefer dividends? Local clienteles vs. firm characteristics
Journal of corporate finance (Amsterdam, Netherlands), Vol.23, pp.150-165
12/2013
Web of Science ID: WOS:000328178000009
Abstract
We examine the payout policy of U.S. firms over the period 1980–2008. Prior research indicates that firm characteristics, managerial preferences, and investor clienteles are all important factors in setting payout policy. Counter to the oft-reported positive relation between senior citizens and the use of dividends, we find no such significant relation. Our results indicate that either senior citizens are indifferent between dividends and repurchases, or that if seniors do demand dividends, they have no influence over firm payout policy. The evolution of firm characteristics, including the average firm size, age, and volatility of earnings over time, best explains payout policy.
•We examine the payout policy of U.S. firms over the period 1980–2008.•We examine the roles of various factors which drive the payout decision.•We find that senior citizens have little influence over firm payout policy.•Instead, we find that firm characteristics drive the payout decision.
Details
- Title
- Do senior citizens prefer dividends? Local clienteles vs. firm characteristics
- Publication Details
- Journal of corporate finance (Amsterdam, Netherlands), Vol.23, pp.150-165
- Resource Type
- Journal article
- Publisher
- Elsevier B.V
- Copyright
- © 2013 Elsevier B.V. All rights reserved.
- Identifiers
- WOS:000328178000009; 99380113389906600
- Academic Unit
- Accounting and Finance; Lewis Bear Jr. College of Business
- Language
- English