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Journal of Financial Economics Vol. 13 No. 2 1984

Explaining investor preference for cash dividends

Hersh Shefrin; Meir Statman

Santa Clara University

Abstract

The well-known tendency of investors to favor cash dividends emerges quite naturally in two new theories of choice behavior [the theory of self-control due to Thaler and Shefrin (1981), and the version of prospect theory set out by Kahneman and Tversky (1979)]. Although our treatment is novel when viewed from the perspective of standard financial theory, it provides explanations for a phenomenon that has long been described as perplexing.

DOI
10.1016/0304-405x(84)90025-4
Volume
13
Issue
2
Pages
253-282
Language
en
Sources
crossref bibtex:phds-export.bib openalex

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