Investor communication and payout policy: a field experiment

B-Tier
Journal: Review of Finance
Year: 2025
Volume: 29
Issue: 6
Pages: 1833-1870

Authors (4)

Xiaoqiao Wang (not in RePEc) Jing Xie (University of Macau) Bohui Zhang (not in RePEc) Xiaofeng Zhao (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We conduct a field experiment to examine whether brief, unsolicited messages can influence corporate dividend policies. Messages highlighting investor concerns rooted in four dividend theories were sent to publicly listed firms. We find that messages framed around agency concerns significantly increase dividend payouts among past payers, particularly those with weaker governance. This effect is robust across alternative specifications and validated by a post-experiment survey. In contrast, messages based on bird-in-hand, signaling, or tax-clientele theories have no significant impact. Our findings suggest that dividend policy is more malleable than traditionally assumed and highlight the role of managerial perceptions in financial decision-making.

Technical Details

RePEc Handle
repec:oup:revfin:v:29:y:2025:i:6:p:1833-1870.
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29