Title: The effect of dividends on portfolio holdings of mutual funds

Authors: Rodrigo Fernandes Malaquias; Wesley Daniel Barbosa Gonçalves; Erica Juvercina Sobrinho

Addresses: Universidade Federal de Uberlândia (UFU), Avenida João Naves de Ávila, nº 2121, Bloco F, Sala 1F-200 (FAGEN/UFU), Campus Santa Mônica, Uberlândia, Minas Gerais, 38.400-902, Brazil ' Centro Universitário de Patos de Minas (UNIPAM), Rua Major Gote, nº 808, Patos de Minas, Minas Gerais, 38.700-001, Brazil ' Universidade Federal de Uberlândia (UFU), Avenida João Naves de Ávila, nº 2121, Bloco F, Sala 1F-215, Campus Santa Mônica, Uberlândia, Minas Gerais, 38.400-902, Brazil

Abstract: We developed this research in order to analyse the relationship between payment of dividends and the composition of mutual funds' portfolios. The database of this paper is composed of 1,006 Brazilian equity mutual funds, and the 1,506 stocks available for investment during the period of analysis: from September 2009 to December 2014. The main results indicated the funds analysed tend to invest in larger companies, and, even among them, the payment of dividends is a significant variable to explain the allocation of resources. Our results indicate that, in emerging economies such as Brazil, the payment of dividends seems to represent an important source of information to help institutional investors in their process of financial resources allocation.

Keywords: Latin America; financial markets; institutional investors; stock prices; stock markets.

DOI: 10.1504/IJAF.2018.097170

International Journal of Accounting and Finance, 2018 Vol.8 No.3, pp.265 - 280

Accepted: 27 Aug 2018
Published online: 26 Dec 2018 *

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