Disappearing Dividends, Catering, and Risk by Gerard Hoberg - Article Example

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In the essay “Disappearing Dividends, Catering, and Risk by Gerard Hoberg” the author summarizes the article about disappearing dividends in relation to risk. He produced two main findings to the question of how risk affects dividends and exposed this nature of this economic reality…

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Disappearing Dividends, Catering, and Risk by Gerard Hoberg

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Subject: Business
Type: Article
Level: High School
Pages: 1 (250 words)
Downloads: 3

Extract of sample "Disappearing Dividends, Catering, and Risk by Gerard Hoberg"

Risk is a significant determinant of the propensity to pay dividends, and it explains roughly 40% of disappearing dividends. We find little support for the view that disappearing dividends reflect firms' catering to transient fads for dividends.ConclusionWe will summarize this article based on the general questions of the study, the empirical method used to test these questions, the general results, and findings.Here we summarized "Disappearing Dividends, Catering, and Risk" by Gerard Hoberg and Nagpurnanand R. Prabhala. They determined that risk is the primary factor in dividends payouts, not transient payout fads.

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