In:
Managerial Finance, Emerald, Vol. 42, No. 10 ( 2016-10-10), p. 999-1016
Abstract:
The purpose of this paper is to examine the dividend policy for firms listed on the Taiwan Stock Exchange. The results are consistent with the prediction of the catering theory in that managers choose a dividend policy to cater to the demand of investors. Design/methodology/approach Logistic regressions are used to test the catering theory hypothesis. Findings The results find that the firms distribute more stock dividends than other types of dividends when the dividend premium (DP) for stock dividends is positive. In contrast, firms shift from stock dividends to other types of dividends such as mixed dividends and cash dividends when the DP for stock dividends is negative. Originality/value The marginal contribution of this paper is that the firms change their dividend policy via DP to cater to the demand of investors.
Type of Medium:
Online Resource
ISSN:
0307-4358
DOI:
10.1108/MF-05-2015-0132
Language:
English
Publisher:
Emerald
Publication Date:
2016
detail.hit.zdb_id:
2047612-7
SSG:
3,2
