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Does the Catering Theory of Dividend Apply to the French Listed Firms?

Author

Listed:
  • Nicolas Aubert

    (Aix Marseille Univ, CERGAM, Puyricard, Inseec Business School)

Abstract

This paper tests the catering theory of dividend in the French market. It investigates how prevailing investor’s demand for dividend payers proxied by the dividend premia affects the dividend policy. The dividend premia are measured at the market level and at the firm level. We find that the market demand for dividends measured by dividend premia affects the decision to start, to continue or to omit to pay dividends and the decision to increase the dividends. However, catering theory does not seem to affect the magnitude of the dividend changes since most results are not significant.

Suggested Citation

  • Nicolas Aubert, 2016. "Does the Catering Theory of Dividend Apply to the French Listed Firms?," Bankers, Markets & Investors, ESKA Publishing, issue 145, pages 27-38, November-.
    • Handle: RePEc:rbq:journl:i:145:p:27-38
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    Cited by:

    1. Mohammed Amine Rharbi & Sami Ben Larbi & Nicolas Aubert, 2025. "Dividends, buybacks, and investor expectations: are French firms truly catering to investor demand?," Post-Print hal-05369144, HAL.
    2. Mohammed Amine Rharbi & Sami Ben Larbi & Nicolas Aubert, 2025. "Dividends, Buybacks, and Investor Expectations: Are French Firms Truly Catering to Investor Demand?," Post-Print hal-05338540, HAL.

    More about this item

    Keywords

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    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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