Title :
An Extension of Dividend Catering Theory
Author_Institution :
Sch. of Econ. & Commerce, South China Univ. of Technol., Guangzhou, China
Abstract :
This paper extends the dividend catering theory raised by Baker and Wurgler (2004) and predicts that expected dividend per share is negatively related to those factors below: the information ratio about dividend cost, the percentage of stock ownership, as well as the premiums of tax, risk, investment. Besides, in another extension of basic model, we incorporate overconfident psychology bias to arbitrageurs, and explain how psychology bias effect dividend payout propensity.
Keywords :
financial management; investment; psychology; dividend catering theory extension; dividend cost information ratio; dividend payout propensity; investment; overconfident psychology bias; stock ownership percentage; tax premium; Companies; Economics; Finance; Investments; Predictive models; Psychology; Weight measurement;
Conference_Titel :
Management and Service Science (MASS), 2011 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-6579-8
DOI :
10.1109/ICMSS.2011.5998463
