This study discovers the relation between corporate governance factors and earnings quality and finds that increases in dividends and foreign ownership deter earnings management. The author shows that dividend increases and foreign ownership enhance earnings quality, but they appear to be...

This paper examines and compares the dividend policies of American depository receipt (ADR) firms and U.S. firms and identifies the factors that determine these policies for both types of companies. We find that ADR firms have higher dividend yields than U.S. firms, while U.S. firms have higher...

We study the effect of reforms that close loopholes in the enforcement of the dividend-withholding tax (DWT). We focus on a Danish reform enacted in 2016, and compare Denmark to its Nordic neighbors. Our main outcome of interest is the quantity of stocks on loan. Before the reform all Nordic...

This study investigates the relationship between business strategy and dividend payment. Based on a sample of U.S.-listed firms from 1995 through 2017, we find that firms with prospector strategies pay more dividends than defender firms. Our findings remain unchanged after controlling for firm...

Modigliani and Miller showed that the market value of the company is independent of its capital structure, and suggested that dividend policy makes no difference to this law of one price. We experimentally test the MM theorem in a complete market with two simultaneously traded assets, employing...

We model a risk-averse firm owner who wants to maximize the inter-temporal expected utility of firm's dividends. The optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA) of the firm. According to the empirical evidence, we...

Social trust helps to reduce information asymmetry and agency conflicts between insiders and investors, and thus alleviates the pressure on firms to pay cash dividends. Consistent with this view, we find that Chinese firms in low-trust regions make higher dividend payouts than those in...

In this paper we try to better understand the adverse consequences of mandatory dividend rules. We identify two main reasons why firms may pay only the mandatory minimum dividend: financial constraints and private benefits. We also argue that the consequences of these rules for firms should...

We estimate short-duration dividend strip prices from 25 years-worth of S&P 500 index option data (1996-2020). We show that short-duration strips offer substantially more attractive returns than does the market, but the measurement error obscures this result at monthly holding periods. For...

The dividend growth model (“DGM”), sometimes called the dividend discount model or discounted cash flow model, is a commonly used tool for estimating the cost of equity capital, particularly in the context of utility rate setting and unitary appraisal. Although the assumption of constant...

We examine geographical peer effects on firms’ corporate payout decisions. We hypothesize that the geographical interconnections between firms, as well as the characteristics of the local dividend markets in which they operate, influence their dividend decisions. Using data on US public firms,...

The study investigates the factors that influence dividend payout policy in public manufacturing Pakistani companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purpose, as the majority of companies does not pay a dividend at all or regularly so all these firms...

We utilise a change to the treatment of franking credits in the hand of domestic shareholders, namely the introduction of fully refundable franking credits, to provide robust evidence on the causal effect of investor-level taxes on corporate dividend policy. Consistent with investors having a...

This study investigates the relationship between gender diversity on the board and dividend payouts in China using a large sample over the period 2003–2017. Our results provide robust and strong evidence showing that gender diversity on the board is positively associated with cash payments of...

Most of the previous studies on dividends in Turkey have focused on the effects of dividend announcements. There has been no study investigating the relation between dividend changes and the future profitability of firms. This study investigates this relation by using both ordinary and panel...

We consider a dividend optimization problem of de Finetti over an admissible class with restricted dividend rates. The risk process under consideration here evolves as a diffusion with negative exponential jumps modulated by an independent Markov chain. We devote to prove that the...

This study examines whether the CEO uses share repurchases to sell her equity grants at inflated stock prices, a concern regularly voiced in politics and media. We find that the timing of buyback programs and equity compensation, i.e., the granting, vesting, and selling of equity, is largely...

More than one in five listed firms in China initiate dividend payments during the year right before their initial public offerings (IPOs). This tendency, which seems to contradict the purpose of raising capital, constitutes the pre-IPO dividend puzzle. This paper examines this puzzle using...

We scrutinize the impact of dividend policy on stock price volatility by considering the seminal paper of Baskin (1989). In this context, we examine the relationship between volatility and three dividend policy indicators, dividend yield, dividend payout, and stock repurchases, for 1,221 firms...

The study examined the unclaimed dividend and market value of listed firms in Nigerian stock exchange using data covering the period 2010 to 2019. Thus, the data gathered were analyzed using the Augmented Dickey-Fuller of unit root test for the stationarity of the data and autoregressive...

This research examines the effect of the crisis due to the COVID-19 pandemic on dividend policy in Indonesia. The purposive sampling method was used to collect data from corporates listed on the IDX from 2014 to 2020 and analyzed using static and dynamic panel data approaches. The fixed-effect...

This study provides empirical proof that the positive impact of high accrual quality is the ability to accurately predict the future return with a positive sign. In the capital market, better prospects are commonly indicated by regularly and routinely implementing a high-yield dividend policy....

The study investigates the factors that influence dividend payout policy in public Pakistani manu- facturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so...

The paper aims to determine whether French companies respond to investor demand and preference in terms of share repurchases and dividend payments. The study is based on data from the Thomson Reuters Eikon database and focuses on French companies listed on the CAC All-Tradable index from 2000 to...

We examine the association between ownership structure and dividend payout policy in a family firms dominated economy. More specifically, we test whether family firms pay higher dividend compared to counter non-family firms in Bangladesh. We argue that family firms are more likely to pay higher...

Restructuring of Australia’s electricity supply industry during the 1990s and the string of M&A events that followed led to two clear lines of business emerging, i). regulated utilities (i.e. poles & wires), and ii). merchant utilities (i.e. competitive generation and retail). There are dozens...

We provide empirical evidence that the level of the dividend signals long-horizon future earnings and that the earnings information embedded in the dividend has implications for expected returns. From an earnings information perspective, we show the level of the dividend is associated with up to...

We examine the effect of increased regulatory enforcement threat on the dividend policies of foreign firms listed in US stock exchanges. The staggered signing of the Multilateral Memorandum of Understanding (MMoU) by the US and foreign regulators facilitates cross-border regulatory cooperation...

We examine how CEO mobility affects corporate payouts. We exploit U.S. state courts' staggered adoption of the Inevitable Disclosure Doctrine (IDD) to obtain exogenous variation in mobility. We report several findings. First, we find that firms in IDD-adopting states increase dividend payouts,...

This paper carefully outlines a method for the calculation of average marginal tax rates. The method is applied to Statistics of Income data for dividend and interest income earned by U.S. households from 1954 to 1980. To illustrate the effects these data can have inempirical work, the tax rates...

The dividend (Gordon) growth model (DGM) is a simple stock valuation equation in four variables: (1) price; (2) next-period cash flow; (3) a perpetual and constant rate of growth in the periodic cash flow; and (4) a perpetually-constant discount rate. The DGM can be expressed to equate the...

We investigate whether and how CEO marital status is related to dividend policy. We find that firms run by single CEOs are less likely to pay dividends. Further analyses reveal that the aforementioned relation is stronger for single CEOs who are more risk-seeking, have compensation packages with...

A long tradition in macro finance studies the joint dynamics of aggregate stock returns and dividends using vector autoregressions (VARs), imposing the cross-equation restrictions implied by the Campbell-Shiller (CS) identity to sharpen inference. We take a Bayesian perspective and develop...

A long tradition in macro-finance studies the joint dynamics of aggregate stock returns and dividends using vector autoregressions (VARs), imposing the cross-equation restrictions implied by the Campbell-Shiller (CS) identity to sharpen inference. We take a Bayesian perspective and develop...

We find that dividend paying firms exhibit better corporate social responsibility (CSR) performance in the following year than non-paying firms. We find that this relation can be explained by stakeholder relationship management through CSR, as dividend payout reflects the shareholder-stakeholder...

In the recent past Saving and Credit Cooperatives Societies (SACCOs) have gained popularity in Kenya due to high interest rates charged by commercial banks and this has made borrowers to shift their focus to SACCOs due to their fixed interest rates on loans. In regard to dividend payment SACCOs...

In the recent past Saving and Credit Cooperatives Societies (SACCOs) have gained popularity in Kenya due to high interest rates charged by commercial banks and this has made borrowers to shift their focus to SACCOs due to their fixed interest rates on loans. In regard to dividend payment SACCOs...

Investor attracting and keeping requires both successful management of a company’s financial performance and an investor’s behavior knowledge, as well as monitoring of stock market current trends. This paper contains the study results on the influence of public companies’ financial...

Recent theoretical approaches have linked shifts in firms' internal funds and investment spending, holding constant underlying investment opportunities. An important impediment to convincing tests of these models is the lack of firm-level data on the relative costs of internal and external...

We propose a loglinear present-value identity in which investment ("scale"), profitability ("yield"), and discount rates determine a firm's market-to-book ratio. Our identity reconciles existing influential market-to-book decompositions and facilitates novel insights from three empirical...