Arbeitspapier
Consuming dividends
This paper studies why investors buy dividend-paying assets and how they time their consumption accordingly. We combine administrative bank data linking customers' consumption transactions and income to detailed portfolio data and survey responses on financial behavior. We find that private consumption is excessively sensitive to dividend income. Investors across wealth, income, and age distributions increase spending precisely around days of dividend receipt. Importantly, the consumption response is driven by financially prudent investors who select dividend portfolios, anticipate dividend income, and plan consumption accordingly. Our results contribute to the literature on a dividend clientele and provide evidence of 'planned' excess sensitivity.
- Language
-
Englisch
- Bibliographic citation
-
Series: SAFE Working Paper ; No. 280
- Classification
-
Wirtschaft
Behavioral Finance: General‡
Portfolio Choice; Investment Decisions
Consumer Economics: Empirical Analysis
Household Saving; Personal Finance
- Subject
-
Consumption
Stock market wealth
Dividends
Excess sensitivity
Self-control
Household finance
Retail investors
- Event
-
Geistige Schöpfung
- (who)
-
Bräuer, Konstantin
Hackethal, Andreas
Hanspal, Tobin
- Event
-
Veröffentlichung
- (who)
-
Leibniz Institute for Financial Research SAFE
- (where)
-
Frankfurt a. M.
- (when)
-
2020
- DOI
-
doi:10.2139/ssrn.3466731
- Handle
- URN
-
urn:nbn:de:hebis:30:3-534560
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bräuer, Konstantin
- Hackethal, Andreas
- Hanspal, Tobin
- Leibniz Institute for Financial Research SAFE
Time of origin
- 2020
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