MARC Record from Library of Congress

LEADER: 02122cam a22003017a 4500
001 2009656051
003 DLC
005 20090827091916.0
007 cr |||||||||||
008 090817s2009 mau sb 000 0 eng
010 $a 2009656051
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aBecker, Bo.
245 10 $aLocal dividend clienteles$h[electronic resource] /$cBo Becker, Zoran Ivkovich, Scott Weisbenner.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2009.
490 1 $aNBER working paper series ;$vworking paper 15175
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 8/17/2009.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We exploit demographic variation to identify the effect of dividend demand on firm payout policy. Retail investors tend to hold local stocks and older investors prefer dividend-paying stocks. Together, these tendencies generate geographically-varying demand for dividends. Firms headquartered in areas in which seniors constitute a large fraction of the population are more likely to pay dividends, initiate dividends, and have higher dividend yields. However, the fraction of seniors is uncorrelated with share repurchases, investment, or profitability, suggesting that geographic variation in dividend payout is not driven by some unmeasured firm characteristic affecting the ability or willingness to distribute cash to shareholders. We also provide indirect evidence as to why firm managers may cater to the demand for dividends from local seniors. Overall, these results suggest that the composition of a firm's investor base affects corporate policy choices"--National Bureau of Economic Research web site.
700 1 $aIvkovich, Zoran.
700 1 $aWeisbenner, Scott J.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 15175.
856 40 $uhttp://wwwdev.nber.org/papers/w15175