Group diversity and optimal dividend policy

Group diversity and optimal dividend policy | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Group diversity and optimal dividend policy Fan Hu, Yaoyao Wu This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8749939/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This paper extends the classical dividend distribution model by incorporating group diversity. The dividend strategies are determined by a group of shareholders with heterogeneous time preferences, rather than a single agent. First, we find that group diversity generates the overvaluation of the firm. Second, we demonstrate that the present bias resulting from group diversity leads to a more conservative dividend distribution policy. Finally, the existence of group diversity increases the endogenous risk aversion of the firm. JEL Classification: G35, G41 Dividend distribution Group diversity Weighted discounting Present bias Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8749939","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":595997534,"identity":"4e08343d-b3cf-4bdf-bfdf-edd535e3ad43","order_by":0,"name":"Fan Hu","email":"","orcid":"","institution":"Guangdong University of Finance \u0026 Economics","correspondingAuthor":false,"prefix":"","firstName":"Fan","middleName":"","lastName":"Hu","suffix":""},{"id":595997535,"identity":"21593e6f-d37e-4868-bf68-25f85bedb114","order_by":1,"name":"Yaoyao Wu","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAAqUlEQVRIiWNgGAWjYJACA4YCBjk29uYDpGgxYDDm4zmWQJo9ifMkchSIVHwjgaGYx+BwehtDDgPDj4ptxGkxBmrJbWM4e4Cx58xtwlrM4FoY+xKYGdtI0JLOxsxjQJqWBDY2YrXYn3nAYDjHIN2wjYct4SBRfpFsT2AzeFNhLS8///HBBz8qiNDCwMD/zYCBoRnMPECMehBgfsDAUEes4lEwCkbBKBiJAAAXCjZnPxu7OwAAAABJRU5ErkJggg==","orcid":"","institution":"Hubei University of Economics","correspondingAuthor":true,"prefix":"","firstName":"Yaoyao","middleName":"","lastName":"Wu","suffix":""}],"badges":[],"createdAt":"2026-01-31 12:53:09","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8749939/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8749939/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":103383591,"identity":"3acc99e8-f5d5-44ac-91c9-d8805ec1eb51","added_by":"auto","created_at":"2026-02-25 06:15:57","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":200943,"visible":true,"origin":"","legend":"","description":"","filename":"latexfile260206.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8749939/v1_covered_a51c0563-3956-486d-8bf5-5b213ae77466.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Group diversity and optimal dividend policy","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Dividend distribution, Group diversity, Weighted discounting, Present bias","lastPublishedDoi":"10.21203/rs.3.rs-8749939/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8749939/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis paper extends the classical dividend distribution model by incorporating group diversity. 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