Lee, King Fuei - In: The Quarterly Review of Economics and Finance 51 (2011) 4, pp. 368-375
The catering theory of dividends proposed that corporate dividend policy is driven by prevailing investor demand for … dividend payers, and that managers cater to investors by paying dividends when the dividend premium is high. While earlier … research found that the dividend premium is not driven by traditional clienteles derived from market imperfections such as …