References (22)



Market Participation and Dividend Clienteles

Marco Rossi

Texas A&M

March 18, 2013

AFA 2009 San Francisco Meetings Paper

Asset allocation and market participation are intimately related investment decisions. Studies of dividend clienteles attribute the positive relation between age and dividends partially 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. Moreover, the positive relation between dividends and age is more likely due to life-cycle considerations rather than to lack of self-control.

Number of Pages in PDF File: 28

Keywords: market participation, dividend clienteles, self-control, CEX

JEL Classification: G10, G19

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Date posted: March 25, 2008 ; Last revised: March 20, 2013

Suggested Citation

Rossi, Marco, Market Participation and Dividend Clienteles (March 18, 2013). AFA 2009 San Francisco Meetings Paper. Available at SSRN: http://ssrn.com/abstract=1107870 or http://dx.doi.org/10.2139/ssrn.1107870

Contact Information

Marco Rossi (Contact Author)
Texas A&M ( email )
430 Wehner
College Station, TX 77843-4218
United States
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