Do senior citizens prefer dividends?: Local clienteles vs. firm characteristics

Krieger, Kevin; Bong-Soo, Lee; Mauck, Nathan

doi:10.1016/j.jcorpfin.2013.08.002

Do senior citizens prefer dividends?

Krieger, K., Bong-Soo, L., & Mauck, N. (2013). Do senior citizens prefer dividends?: Local clienteles vs. firm characteristics. Journal of Corporate Finance, 23. doi:10.1016/j.jcorpfin.2013.08.002

Details

Title: Do senior citizens prefer dividends?: Local clienteles vs. firm characteristics
Contributor(s): Krieger, Kevin (author)
Bong-Soo, Lee (author)
Mauck, Nathan (author)
Located In: Journal of corporate finance
ISSN: 0929-1199
Date: 2013
Notes: JEL classification: G35
DOI: 10.1016/j.jcorpfin.2013.08.002
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.
Subject(s): Clientele effect