Gaspar, José-Miguel; Massa, Massimo; Matos, Pedro Pinto; … - C.E.P.R. Discussion Papers - 2004
We examine how shareholder investment horizons influence firms’ payout decisions. We find that US firms held by short-term institutional investors have a higher propensity to buybacks shares instead of using dividends. Firm managers seem to respond to the preferred payout policy of investors...