Market Participation and Dividend Clienteles Academic Article

abstract

• Asset allocation and market participation are intimately related investment decisions. Studies of dividend clienteles often attribute the positive relation between age and dividends to lack of self-control, but consumers with self-control problems are precisely those less likely to hold securities. Using data from the Consumer Expenditure Survey (CEX), I model market participation and dividend preferences jointly and find evidence of self-selection bias in traditional regressions linking dividend preferences to investors' demographics. The positive relation between dividends and age is likely due to life-cycle considerations rather than to lack of self-control.

authors

• Rossi, Marco

author list (cited authors)

• Rossi, M.

complete list of authors

• Rossi, Marco

publication date

• March 2014

keywords

• Cex
• Dividend Clienteles
• Market Participation
• Self-control

start page

• 1

end page

• 21

volume

• 04

issue

• 04