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Cited by 1,324

The DOI matches its Crossref record; 5 of the 5 references it cites were found in a registry or an index.

A Catering Theory of Dividends

Open access
Baker, Malcolm, Wurgler, Jeffrey·2004·The Journal of Finance
DOI 10.1111/j.1540-6261.2004.00658.x
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Abstract

We propose that the decision to pay dividends is driven by prevailing investor demand for dividend payers. Managers cater to investors by paying dividends when investors put a stock price premium on payers, and by not paying when investors prefer nonpayers. To test this prediction, we construct four stock price‐based measures of investor demand for dividend payers. By each measure, nonpayers tend to initiate dividends when demand is high. By some measures, payers tend to omit dividends when demand is low. Further analysis confirms that these results are better explained by catering than other theories of dividends.

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Crossref · 10.1111/j.1540-6261.2004.00658.x

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Metadata

Authors
Baker, M., & Wurgler, J.
Venue
The Journal of Finance
Publisher
Wiley
Published
2004-06
Volume
59
Issue
3
Pages
1125-1165
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/j.1540-6261.2004.00658.x
OpenAlex
W2763199793
Cited by
1,324
References
5
FWCI
120.13
Type
journal article
Language
en
Open access
bronze

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CoChat. (2026). Citation check: A Catering Theory of Dividends. https://app.cochat.ai/papers/10.1111/j.1540-6261.2004.00658.x
The paper
Baker, M., & Wurgler, J. (2004). A Catering Theory of Dividends. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.2004.00658.x

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.