This study shows that payout policy depends on the market expectation of the repurchase completion rate, within the context of the free cash flow hypothesis. Our model formulates that the amount of agency costs that are unlikely to be reduced discounts the share price at the announcement of...

This paper presents an alternative theory explaining why firms adopt dividend policies of various kinds at intermediate levels. We extend the dividend clientele model from a traditional corner-solution framework to an interior-solution framework. For some investors, intertemporal double taxation...

As an alternative version of the side-payment model, this paper presents a demonstration of how the necessity of winning majority support of shareholders influences the relation between a blockholder's monitoring incentive and a firm's dividend policy. When dividend-averse individuals...

This paper proposes an explanation, according to a given investment policy and capital structure, for why some firms pay dividends and issue equity simultaneously. For individual investors, this combination invites additional taxes, wasteful flotation costs, and adverse selection. Within the...

Corporate investors putatively seek high dividends because marginal tax rates on dividends are lower than those on capital gains. However, a lower tax quot;ratequot; does not necessarily mean that a higher dividend is desirable. Taking the intertemporal consumption choices given, corporate...

According to Article 210 of the Commercial Law, a bank (or a firm) with an intention of repurchasing shares has to make two decisions at the board of directors. The one is the decision about whether a bank has a tendency of repurchasing shares in the future or not and then about how many shares...

We estimate dynamic R&D investment models in publicly traded Japanese manufacturing firms over 2001-2009. Splitting into two subsamples by the degree of corporate diversification, we provide evidence that less-diversified firms have an increased tendency to smooth R&D but more-diversified firms...

This study employs the meta-SFA and panel data analysis to investigate the impact of identifiable intangibles (excluding goodwill) on the bank’s efficiency and efficiency convergence among 4 areas: the EU, US, JP, and CN. Our work focuses on 609 commercial banks from 2012 to 2021, which...