This study investigates the international presence of dividend catering in different legal regimes in 21 countries from 1996 to 2010. Using modified dividend premiums, we find evidence of dividend catering among firms in common law countries, but not among those in civil law countries. Catering in common law countries persists even after controlling for the effect of fundamental variables like profitability, size, and growth opportunities. In civil law countries, cash dividends are less responsive to the value premium of dividend-paying firms. However, we find that if taxation penalties on dividends are controlled, firms in common law countries strongly cater to investors when
investor sentiment is negative. Our results suggest that when investors are well protected and negative sentiment is present, they force dividends from managers by placing a high value on dividend-paying firms.
학회소식
[2013년 제 4차] Dividend Catering, Investor Protection, and Investo
작성자 : 관리자
조회수 : 1100
게시일 :
2013-12-16
