The impact of the catering theory and financial firms' characteristics on dividend decisions: the case of the French market
AbstractThis article investigates the impact that prevailing investor demand for dividend payers and financial firm's characteristics have on the probability of starting or continuing to pay dividends. To test this prediction, we use probit regressions on panel data. The major finding that emerges from our analyses is: in large companies characterized by high profitability and low debt levels, investors' demand for dividend payers has a positive and significant impact on the probability that a manager will decide to pay positive dividends.
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Date of creation: 17 Dec 2012
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behavioral corporate finance; dividend; econometric of panel data; investor's irrationality.;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
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