An Examination of Institutional Dividend Clienteles: Evidence from Australian Institutional Portfolio Holdings

31 Pages Posted: 21 Jul 2006

See all articles by Aelee Jun

Aelee Jun

University of Wollongong - Faculty of Commerce - School of Accounting and Finance

David R. Gallagher

Bond University

Graham Partington

University of Sydney - School of Business - Finance Discipline; Financial Research Network (FIRN)

Date Written: June 2006

Abstract

Shareholdings for a sample of forty-nine Australian institutional equity funds show that dividend policy affects institutional holdings. Institutions tend to hold stocks that pay dividends, but among dividend-paying stocks there is no simple preference for stocks with either the highest or lowest dividend yields or dividend payout ratios. We also investigate whether dividend franking status affects institutional ownership. Institutions tend to have a higher ownership in stocks which carry full imputation tax credits compared to stocks which have partial, or zero imputation tax credits.

Keywords: dividend clienteles, institutions, portfolio holdings, imputation tax credits

JEL Classification: G23

Suggested Citation

Jun, Aelee and Gallagher, David R. and Partington, Graham, An Examination of Institutional Dividend Clienteles: Evidence from Australian Institutional Portfolio Holdings (June 2006). Available at SSRN: https://ssrn.com/abstract=918162 or http://dx.doi.org/10.2139/ssrn.918162

Aelee Jun (Contact Author)

University of Wollongong - Faculty of Commerce - School of Accounting and Finance ( email )

University of Wollongong NSW
2522
Australia

David R. Gallagher

Bond University ( email )

Centre for Data Analytics, Bond Business School
Gold Coast, QLD 4229
Australia

Graham Partington

University of Sydney - School of Business - Finance Discipline ( email )

Building H69
Sydney NSW, 2006
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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