Dividends and society-part III: "What is the puzzle in 'the dividend puzzle'?"

Frankfurter, George Moshe (2018) Dividends and society-part III: "What is the puzzle in 'the dividend puzzle'?". In: Frankfurter, George Moshe and McGoun, Elton G., (eds.) From Individualism to the Individual: Ideology and Inquiry in Financial Economics. Routledge, London, pp. 398-412. ISBN 9781138731646 (Print) 9781351744553 (Online)

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The questions of why firms pay dividends, why investors like dividends, and why investment advisors recommend to buy stock that pays dividends regularly, represent some of the most intriguing problems of financial economics. In this paper, I trace the academic path that led to the intellectual destitution of the current understanding of the problem. I also argue that the love of dividends is something that investors were conditioned to feel for centuries and that only education will change their attitudes. Nevertheless, I predict that academia will still try to find economically rational solutions to the dividend puzzle for many years to come.
Item Type: Book Section / Chapter
Divisions: Faculty of Arts and Social Sciences
Depositing User: George Moshe Frankfurter
Date Deposited: 24 May 2023 16:07
Last Modified: 24 May 2023 16:07
URI: https://research.sabanciuniv.edu/id/eprint/45702

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