This study is an empirical examination of a new theory that links dividends to institutional ownership in a framework …, dividends are paid out to attract tax-favored institutional investors, thereby signaling good firm quality and/or more efficient … testing various aspects of the relationship between dividends and institutional holdings. Unlike the prevalent literature on …

increased dividends constrict management's future behavior, abating the agency problem with shareholders. The signaling …

likely to continue to pay dividends, while firms that do not have a history of regular dividend payments are not likely to … begin to pay dividends or continue to do so. The results of a set of generalized polytomous logistic regressions imply that …

.Originality/value – This analysis differs from previous approaches by utilizing retained earnings, rather than stock market capital gains, to …

of them (those that had already approved dividend pay-outs before the recommendation) were able to pay dividends during …

sector. Using granular data on euro area-based mutual funds’ holdings, we show that demand for dividends motivated portfolio …