Published in:University of Miami Business School Research Paper ; No. 2875114
Extent:
1 Online-Ressource (58 p)
Language:
English
DOI:
10.2139/ssrn.2875114
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 11, 2020 erstellt
Description:
Using Internet search volume of dividend-related keywords to measure investor preference for dividends that varies over time and across states, we show that dividend sentiment affects corporate policies and asset prices. Investors search more for dividends when economic conditions are poor, with the peak volume reached during the recent COVID-19 pandemic. Mutual funds that pay high dividends receive more inflows when dividend sentiment is stronger. Further, firms initiate or increase dividends when dividend sentiment is stronger, especially in regions with strong dividend sentiment. Shifts in dividend sentiment predict higher investor demand for dividends and higher returns for high dividend stocks