股票市场流动性与公司股利政策外文翻译.docVIP

外文翻译 Stock Market Liquidity and Firm Dividend Policy Material Source: Journal of Financial and Quantitative Analysis Author: Suman Banerjee;Viadimir A Cate;Paul A Spindt Firms’ dividend policies continue to puzzle financial researchers. In this paper, we argue that investor demand for stocks paying cash dividends is positively related to the trading friction that investors face when creating homemade dividends. We further hypothesize that the likelihood a firm will pay cash dividends is positively related to investor demand for dividend payments and therefore inversely related to the market liquidity of the firm’s stock.Examining the empirical evidence, we find strong support for our hypothesis. In their seminal work, Miller and Modigliani (1961) formally developed the dividend irrelevance hypothesis. In perfect capital markets populated by rational investors, a firm’s value is solely a function of the firm’s investment opportunities and is independent of the firm’s payout policy. A large body of theoretical work has tried to evaluate the importance that managers and investors attach to dividend policy in light of the irrelevance proposition. The starting point of these studies is to question some of the assumptions that characterize the perfect capital markets hypothesized by Miller and Modigliani. One notable assumption of the dividend irrelevance proposition, and one central to this paper, is that trading is frictionless. In perfect markets, investors can instantaneously invest or liquidate their investment in any stock without incurring any direct or indirect costs of trading and without changing the price of the underlying security. In markets with no trading friction, rational investors with liquidity needs can create homemade dividends at no cost by selling an appropriate amount of their holdings in the firm. As a result, they will be indifferent between receiving a dollar of dividend and selling a dollar’s worth of their investment. In markets with trading