Behavioral dividend policy

Arbeitspapier | Working paper

"In this paper we develop an optimal dividend policy in the presence of limited rational inves-tors. Concretely, investors with mental accounts for dividends and stock prices as well as emotions like disappointment and elation embody the limited rationality. Furthermore, investors evaluate changes in wealth instead of final wealth. A management maximizing investors’ ‘modified’ utility results in the optimality of dividend payments as well as dividend smoothing, which both have long been puz-zles to financial theorists. Moreover, a model specification leads to a gradual dividend adjustment to changes in net earnings as described by Lintner (1956)." (author's abstract)

Object Details

• Extent: Seite(n): 26
• Language: Englisch
• Notes: Status: Veröffentlichungsversion

References and Relationships

• Bibliographic citation: IF Working Paper Series (FW04V1)

Classification and Topics

• Subject: Wirtschaft ; Finanzwirtschaft, Rechnungswesen ; Investition ; Gewinnverteilung ; Börse ; Aktienmarkt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gürtler, Marc ; Hartmann, Nora
• Event: Veröffentlichung
• (who): Technische Universität Braunschweig, Department Wirtschaftswissenschaften, Institut für Finanzwirtschaft
• (where): Deutschland, Braunschweig
• (when): 2003

Further information

• Handle: http://hdl.handle.net/10419/55235
• Rights: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Last update: 21.06.2024, 4:27 PM CEST