Investor Sentiment and Corporate Dividend Policy

• Main Authors: Wen-Lin Hou, 侯玟伶
• Other Authors: Hsiang-Hsuan Chih
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/84301330267676360729

碩士 === 國立東華大學 === 公司理財碩士學位學程 === 97 === The research analyzes the impact of investor sentiment on dividend policy. The recent literature applied the view of cartering theory, liquidity and idiosyncratic risk of stock to explain why the low “propensity to pay dividends” in American. But they can explain the limited part. We think that investor sentiment can explain how managers do the dividend policy well. The research not only examine how investor sentiment affect dividend policy, but considering whether firms that are likely to be more affected by shifts in investor sentiment-newer, smaller, more volatile, unprofitable, with extreme growth potential firms- its dividend policy affected by investor sentiment will be more apparent. The results suggest that the impact of investor sentiment on dividend policy is statistically significant from zero, when the investor sentiment is low, firms are more likely to pay dividends, and firms are newer, smaller, more volatile, unprofitable, with extreme growth potential, its dividend policy affected by nvestor sentiment is more apparent. We also find that firms are likely to be more affected by shifts in investor sentiment, the stock market reaction to their dividend changes more depends on investor sentiment. Furthermore, we find that firms are likely to be more affected by shifts in investor sentiment, its managers do learn from the firm’s own considering investor sentiment experience. If considered the investor sentiment had the great market reaction in last time, will enhance managers do consider the investor sentiment again.