Title: | Appearing and disappearing dividends: The link to catering incentives |
Authors: | Baker, Malcolm Wurgler, Jeffrey |
Issue Date: | 8-Jul-2003 |
Series/Report no.: | FIN-03-023 |
Abstract: | We document a close link between fluctuations in the propensity to pay dividends and catering incentives. First, we use the methodology of Fama and French (2001) to identify a total of four distinct ends in the propensity to pay dividends between 1963 and 2000. Second, we show that each of these ends lines up with a corresponding fluctuation in catering incentives: The propensity to pay increases when a proxy for the stock market dividend premium is positive and decreases when it is negative. The lone disconnect is attributable to Nixon-era controls. |
URI: | http://hdl.handle.net/2451/27221 |
Appears in Collections: | Finance Working Papers |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
wpa03023.pdf | 276.47 kB | Adobe PDF | View/Open |
Items in FDA are protected by copyright, with all rights reserved, unless otherwise indicated.