More documents from Gürtler, Marc; Hartmann, Nora

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Behavioral dividend policy

[working paper]

Gürtler, Marc; Hartmann, Nora

fulltextDownloadDownload full text

(304 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Corporate Editor Technische Universität Braunschweig, Department Wirtschaftswissenschaften, Institut für Finanzwirtschaft
Abstract "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)
Keywords investment; distribution of profits; stock exchange; stock market
Classification Financial Planning, Accountancy
Free Keywords dividend policy; dividend smoothing; behavioral finance
Document language German
Publication Year 2003
City Braunschweig
Page/Pages 26 p.
Series IF Working Paper Series, FW04V1
Status Published Version
Licence Deposit Licence - No Redistribution, No Modifications
data provider This metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne