Igan, Deniz; de Paula, Aureo; Pinheiro, Marcelo - Volkswirtschaftliche Fakultät, … - 2006
We document the association between a firm's payout policy and its stock's liquidity. In particular, we show that … dividend-paying firms have a more liquid market for their stock and measures of a stock's liquidity is positively linked to its … probability of being a dividend payer. Furthermore, this link between dividends and liquidity is stronger when shareholders are …