DocumentCode
2968467
Title
An Extension of Dividend Catering Theory
Author
Yang Zhe
Author_Institution
Sch. of Econ. & Commerce, South China Univ. of Technol., Guangzhou, China
fYear
2011
fDate
12-14 Aug. 2011
Firstpage
1
Lastpage
4
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;
fLanguage
English
Publisher
ieee
Conference_Titel
Management and Service Science (MASS), 2011 International Conference on
Conference_Location
Wuhan
Print_ISBN
978-1-4244-6579-8
Type
conf
DOI
10.1109/ICMSS.2011.5998463
Filename
5998463
Link To Document