Based on standard option pricing arguments and assumptions (including no convenience yield and sustainable property rights), we will not observe operating gold mines. We find that asymmetric information on the reserves in the gold mine is a necessary and sufficient condition for the existence of...

This paper investigates and compares stock dividends and stock splits on the Copenhagen Stock Exchange (CSE), which is of interest because several of the more recent explanations for a stock market reaction can be ruled out in the case of the Danish stock market. The main findings are that the...

Based on a total sample largely uncontaminated by share repurchases we find that the characteristics of dividend payers are: Positive earnings, high ROE (net earnings to book equity), low volatility in ROE, high retained earnings, large firm size, and whether the firm paid out dividends in the...

Firms pay out cash using both dividends and share repurchases. In many aspects these two means are similar, but one important difference is that dividends are generally taxed more heavily than share repurchases. Nevertheless firms persist in paying out large amounts in dividends. This paper...

This paper examines the consequences of a certain regulatory restriction on bids <p> for dual class shares. Shares of dierent classes are often argued to have dierent <p> prices because a premium will be paid to the superior voting shares in the case of a <p> tender oer. This paper takes as given a setup...</p></p></p>

Firms pay out cash to shareholders using both dividends and share repurchases despite the fact that dividends are generally taxed more heavily than share repurchases. This paper provides a general explanation for this dividend puzzle by developing a class of signaling models where the most...

It is often asserted that stock splits and stock dividends are purely cosmetic events. However, many studies have documented several stock market effects associated with stock splits and stock dividends. This paper examines the effects of these two types of events for the Danish stock market....

This paper investigates stock dividends and stock splits on the Copenhagen Stock Exchange (CSE), which is of interest because several of the more recent explanations for a stock market reaction can be ruled out. The main findings are that the announcement effect of stock dividends as well as...