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Demographics of dividends

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  • Nicolosi, Gina

Abstract

Using seventeen observable demographic characteristics, we investigate the impact of six CEO profiles on dividend policy. Firms headed by married, Republican, Christian CEOs with children maintain higher dividend yields and are more likely to considerably increase their dividend payout. Following substantial dividend hikes, firms led by CEOs with these more traditional personal lives exhibit deteriorating performance. Potential explanations include managerial optimism coupled with dividend signaling and the possibility that CEO profiles proxy for an unobserved firm effect such as firm maturity. However, the associations above continue to persist in both mature firm and turnover sub-samples. Overall, this suggests that these relationships are related to characteristics of the CEOs themselves.

Suggested Citation

  • Nicolosi, Gina, 2013. "Demographics of dividends," Journal of Corporate Finance, Elsevier, vol. 23(C), pages 54-70.
    • Handle: RePEc:eee:corfin:v:23:y:2013:i:c:p:54-70
    DOI: 10.1016/j.jcorpfin.2013.07.003
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    References listed on IDEAS

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    Cited by:

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    4. Dragotă, Victor & Pele, Daniel Traian & Yaseen, Hanaan, 2019. "Dividend payout ratio follows a Tweedie distribution: International evidence," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-35.
    5. Kim, Jeong-Bon & Liao, Shushu & Liu, Yangke, 2021. "Married CEOs and Stock Price Crash Risk," QBS Working Paper Series 2021/09, Queen's University Belfast, Queen's Business School.
    6. Ming-Hua Liu & Shaohua Tian & Yang Zhang, 2023. "CEO marital status and corporate tax planning behavior," Review of Quantitative Finance and Accounting, Springer, vol. 61(4), pages 1207-1242, November.
    7. Hossain, Md Noman & Rabarison, Monika K. & Ater, Brandon & Sobngwi, Christian K., 2023. "CEO marital status and dividend policy," Journal of Corporate Finance, Elsevier, vol. 78(C).
    8. Amore, Mario Daniele & Miller, Danny & Le Breton-Miller, Isabelle & Corbetta, Guido, 2017. "For love and money: Marital leadership in family firms," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 461-476.

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    More about this item

    Keywords

    CEO; Dividend policy; Payout policy; Overconfidence; Optimism;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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