13. The Catering Theory of Dividends

  1. H. Kent Baker
  1. Margot De Rooij1 and
  2. Luc Renneboog2

Published Online: 29 NOV 2011

DOI: 10.1002/9781118258408.ch13

Dividends and Dividend Policy

Dividends and Dividend Policy

How to Cite

Baker, H. K. (2009) The Catering Theory of Dividends, in Dividends and Dividend Policy, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118258408.ch13

Author Information

  1. 1


  2. 2

    Professor of Corporate Finance, tilburg University

Publication History

  1. Published Online: 29 NOV 2011
  2. Published Print: 20 APR 2009

ISBN Information

Print ISBN: 9780470455807

Online ISBN: 9781118258408



  • financial decision;
  • dividend payout decision;
  • managerial financing;
  • investment decision;
  • terminal distribution


This chapter contains sections titled:

  • Introduction

  • Baker and Wurgler's Catering Theory of Dividends

  • Extensions to the Catering Theory of Dividends

  • The Role of Catering in Explaining Other Dividend Theories

  • Evidence from Empirical Studies

  • Beyond Catering for Investors' Sentiments

  • Why Do Investors' Preferences for Dividends Change over Time?

  • Conclusions

  • About the Authors