Abdelaziz Chazi, Alexandra Theodossiou and Zaher Zantout
The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical…
Abstract
Purpose
The purpose of this paper is to develop and validate new robust measures of investors’ preference for the form of regular corporate payout. Then, the paper adds to the empirical evidence on catering theory by examining managers’ catering to such preference.
Design/methodology/approach
The authors use the matching method to control for firm characteristics. The authors apply two robustness tests to validate the measures. The authors use the rigorous multivariate analysis.
Findings
US investors’ preference for regular dividends vs regular stock repurchases, being different forms of corporate payout, varies over time. Managers cater to investors’ preference for payout form. The findings are consistent with the catering theory of Baker and Wurgler (2004a). The number of firms that pay cash dividends regularly continue to outnumber the ones that purchase their shares regularly.
Research limitations/implications
The study only uses US data. It does not cover other countries.
Practical implications
The measures can be used in several future research endeavors, such as examining investors’ payout-form preferences in other countries (see Booth and Zhou, 2017) and exploring their determinants, the corporate governance characteristics of firms that cater to investors’ preference vs firms that do not, etc.
Social implications
The study contributes to understanding investors’ preferences and corporate payout behavior which is prerequisite to efficient policy formulation.
Originality/value
The proxies for investors’ payout-form preference control for firm characteristics and are unrelated to investors’ time-varying risk preferences. Also, they are robust to measurement issues. Moreover, the study covers a period of 40 years.
Details
Keywords
Alexandra Panagiotis Pliakoura, Grigorios Beligiannis and Achilleas Kontogeorgos
Literature contributions to agricultural cooperative (AC) entrepreneurship model are fragmented and show some significant limitations. The purpose of this paper is to identify the…
Abstract
Purpose
Literature contributions to agricultural cooperative (AC) entrepreneurship model are fragmented and show some significant limitations. The purpose of this paper is to identify the existing important barriers to this entrepreneurship model as well as to group them into respective themes.
Design/methodology/approach
A systematic literature review (SLR) of peer reviewed journal articles was carried out by the authors in well-known databases, such as Scopus, Emerald, ScienceDirect, Google Scholar, IDEAS/RePEc search and Web of Science. In total, 78 articles from 26 different countries during 2010–2019 were collected.
Findings
A large number of important barriers are identified in the literature and meaningful dimensions of these barriers are also revealed.
Practical implications
The study has important implications regarding the ways to improve the effectiveness of AC model. Researchers and practitioners can use the results presented in this study for further development of this model.
Originality/value
This study presents the important barriers in AC model in global scope analytically and groups them into meaningful themes, which significantly differentiate the present SLR study from those published so far.