Baker, H. Kent; Mukherjee, Tarun K.; Powell, Gary E. - Department of Economics and Finance, College of … - 2004
This study explores why firms distribute excess cash as specially designated dividends (SDDs) instead of using regular dividends or repurchasing shares. We survey top managers of NASDAQ, AMEX, and NYSE firms issuing at least one SDD between 1994 and 2001. The results show that firms tend to pay...