Dividend changes and catering incentives

By Wei Li, Erik Lie. 2006

334 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/8de406bf80d44b27d458c6a654fc4232f4e5c084

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Robin Greenwood
2. Malcolm P. Baker
3. Jeffrey Wurgler
4. Stephen P. Ferris
5. Anup Agrawal
6. Binay Adhikari
7. David J. Denis
8. Soku Byoun

In Strategy and Management

1. Malcolm P. Baker
2. Jeffrey Wurgler
3. David J. Denis
4. Robin Greenwood
5. Soku Byoun
6. Anup Agrawal
7. Igor Osobov
8. Sung C. Bae

Citations in the corpus

• CULTURE, CORPORATE GOVERNANCE, AND DIVIDEND POLICY: INTERNATIONAL EVIDENCE (2012, result): “Li and Lie (2006) extend Baker and Wurgler’s catering theory to include increases and decreases of dividends, and provide evidence supporting the catering theory.”
• Catering Through Nominal Share Prices (2009, positive): “…clienteles with a particular focus in terms of stock price shift in importance over time.3 The paper adds nominal share prices to a list of managerial decisions that may be shaped by catering influences.4 Baker and Wurgler (2004a,b) and Li and Lie (2006) consider catering via dividend policy.”
• Peer influence on payout policies (2018, background): “Following Allen and Michaely (2003) and Li and Zhao (2008), we normalize the amount of dividends by book assets, rather than by market capitalization or earnings, to ensure that the results are not influenced by stock price variations or affected by firms with negative earnings.14 To parallel…”
• Catering Effects in Corporate Dividend Policy: The International Evidence (2009, positive): “…Baker and Wurgler (2004b) provide a catering explanation for the unexpected reductions in the percent of dividend paying firms within the U.S. Li and Lie (2006) provide further confirmation of catering effects among U.S. firms through an examination of changes in corporate payout ratios and…”
• Firm Life Cycle, Corporate Risk Taking, and Investor Sentiment (2017, neutral): “…Recent work in finance has studied the impact of such sentiment on corporate actions, such as equity issues (Baker and Wurgler, 2002), dividend payouts (Baker and Wurgler, 2004; Li and Lie, 2006), investment (Gilchrist et al. 2005; Polk and Sapienza, 2009) and acquisitions (Dong et al. 2006).”
• The Value of Connections in Turbulent Times: Evidence from the United States (2016, neutral): “Although there is no generally agreed-upon length for the estimation window, a length of 250 days corresponds to roughly one year of trading and has been used in other studies such as Jayachandran (2006) and Li and Lie (2006).”
• Does Corporate Board Diversity Affect Corporate Payout Policy (2016, positive): “If firms that are more attentive to shareholders’ voices choose high payout policy (Baker and Wurgler (2004), Li and Lie (2006)) as well as more diverse board since it is right thing to do in the eyes of shareholders, we may observe the positive association between board diversity and payout policy.”
• Dividend Payouts and Corporate Governance Quality: An Empirical Investigation (2011, neutral): “In addition, our results are in agreement with recent studies on dividend catering (e.g., Baker and Wurgler, 2004; Li and Lie, 2006; Ferris, Jayaraman, and Sabherwal, 2009).”
• Why Do Firms Pay Dividends? International Evidence on the Determinants of Dividend Policy (2008, background): “15 Li and Lie (2006) extend the catering theory to dividend increases and decreases and find that the decision to change dividends is related to”