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

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.
JEL classification: G02; G35.
Keywords: Dividends; Payout policy; Catering; Dividend premium; Behavioral corporate finance.

L'auteur

  • Aubert
    • Professeur des Universités
      Aix Marseille Univ, CERGAM, Puyricard, France
    • Inseec Business School

Revue de l'article

Cet article est extrait de
Bankers, Markets & Investors n°145

Short-term Impacts of the 2004 Indian Ocean Tsunami on Stock Markets: A DCC-GARCH Analysis - ...


Lire la suite >>

L'article que vous souhaitez consulter est payant ou réservé à nos abonnés.

Vous êtes abonné.
Merci de vous identifier.

Achetez ce contenu à l'unité

Tarif : 15.00 euros TTC
Bankers, Markets & Investors