Dividends, Buybacks, and Investor Expectations: Are French Firms Truly Catering to Investor Demand?

Mohammed Amine Rharbi, Sami Ben Larbi () and Nicolas Aubert ()
Additional contact information
Mohammed Amine Rharbi: CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon
Sami Ben Larbi: CERGAM de Toulon - Centre d'Études et de Recherche en Gestion d'Aix-Marseille/Equipe de recherche de Toulon - CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon - IAE Toulon - Institut d'Administration des Entreprises (IAE) - Toulon - UTLN - Université de Toulon
Nicolas Aubert: CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IAE - Institut d'Administration des Entreprises (IAE) - Aix-en-Provence - AMU - Aix Marseille Université

Post-Print from HAL

Abstract: PurposeBased on a theoretical framework that favors catering theory, this paper aims to determine whether French companies respond to investor demand and preference for share repurchases and dividend payments. Design/methodology/approachThe study is based on data from the Thomson Reuters Eikon database and focuses on French companies listed on the CAC All-Tradable index from 2000 to 2023. The study sample comprises 183 companies over 24 years, representing a total of 4,392 observations. The authors employ logistical regression to analyze the impact of independent variables on payout decisions. FindingsThe study finds evidence that French companies negatively respond to investor demand for dividend payments, share repurchases, and difference premiums. OriginalityTo the best of the authors' knowledge, this study is the first to test catering theory on share repurchase in the French context and to study the catering effect on investor preferences. To do so, the study empirically examines whether the listed French companies react to investor demands and preferences for different forms of compensation, specifically the distribution of dividends and share buyback.

Keywords: share buyback; dividend; catering theory; dividend premium; repurchase premium; difference premium (search for similar items in EconPapers)
Date: 2025-10-30
Note: View the original document on HAL open archive server: https://hal.science/hal-05338540v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Managerial Finance, 2025, pp.1-22. ⟨10.1108/MF-11-2024-0830⟩

Downloads: (external link)
https://hal.science/hal-05338540v1/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05338540

DOI: 10.1108/MF-11-2024-0830

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().