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Cited by 852

The DOI matches its Crossref record; 39 of the 39 references it cites were found in a registry or an index.

A Theory of Dividends Based on Tax Clienteles

Open access
Allen, Franklin, Bernardo, Antonio E., Welch, Ivo·2000·The Journal of Finance
DOI 10.1111/0022-1082.00298
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Abstract

This paper explains why some firms prefer to pay dividends rather than repurchase shares. When institutional investors are relatively less taxed than individual investors, dividends induce “ownership clientele” effects. Firms paying dividends attract relatively more institutions, which have a relative advantage in detecting high firm quality and in ensuring firms are well managed. The theory is consistent with some documented regularities, specifically both the presence and stickiness of dividends, and offers novel empirical implications, e.g., a prediction that it is the tax difference between institutions and retail investors that determines dividend payments, not the absolute tax payments.

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Registry

Crossref · 10.1111/0022-1082.00298

Cites

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Citations

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Metadata

Authors
Allen, F., Bernardo, A. E., & Welch, I.
Venue
The Journal of Finance
Publisher
Wiley
Published
2000-12
Volume
55
Issue
6
Pages
2499-2536
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/0022-1082.00298
OpenAlex
W2122925298
Cited by
852
References
39
FWCI
39.77
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: A Theory of Dividends Based on Tax Clienteles. https://app.cochat.ai/papers/10.1111/0022-1082.00298
The paper
Allen, F., Bernardo, A. E., & Welch, I. (2000). A Theory of Dividends Based on Tax Clienteles. The Journal of Finance. https://doi.org/10.1111/0022-1082.00298

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.