Download or read book The dividend puzzle written by Reinhard Windisch and published by GRIN Verlag. This book was released on 2008-03-20 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2005 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 2,0, University of Graz, language: English, abstract: For many years economists and financial experts have argued about the „dividend puzzle“, i.e. about the impact of dividends on stock prices. Describe this puzzle, explain why it appears so intractable, and state what might be done to bring us all closer to an acceptable solution.
Download or read book Dividend Policy written by George Frankfurter and published by Elsevier. This book was released on 2003-06-24 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividend Policy provides a comprehensive study of dividend policy. It explores the puzzle presented by dividends: irrational and subject to fashion, yet popular and desirable, they remain a priority among managers, even while perceived as largely symbolic. After exploring the history of dividend payments, from the emergence of the modern corporation to current perspectives, it traces the evolution of academic models on dividend policy. Here the authors review models of symmetric and asymmetric information before analyzing academia's accomplishments in solving the dividend puzzle. Related subjects, such as valuation and wealth distribution, round out the authors' presentation about new ways to think about one of the most intriguing subjects in financial economics. The book is recommended for professors and students in departments of finance and business, corporate finance staff, and financial regulators. The only comprehensive study of dividend policy Covers the historical evolution of dividends and academic research on dividend policy Presents new ways of thinking about dividends and dividend policy
Download or read book Payout Policy Irrelevance and the Dividend Puzzle written by Harry DeAngelo and published by . This book was released on 2007 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do firms make large cash payouts, given the tax advantages of retention? The dividend puzzle is based on the premise that low or near-zero payouts are optimal (although not uniquely so) in frictionless markets, hence should be strictly optimal when payouts are taxed. This logic reflects misunderstandings about the nature of payout policy irrelevance in frictionless markets and the implications of adding personal taxes to the standard finance model. In frictionless markets, all optimal policies require substantial payouts. Those with low or near-zero distributions are strictly sub-optimal, and are infeasible given rational expectations. Payout policy irrelevance does not carry over to general equilibrium, so it is inappropriate to conclude that many or most firms can make low payouts for extended periods. Imposition of personal taxes perturbs the frictionless equilibrium on the margin, but does not alter the implication that all optimal policies require substantial payouts. In short, the standard finance model (with or without taxes) implies, requires, and predicts the large payouts observed in the world.
Download or read book Tax Policy and the Dividend Puzzle written by B. Douglas Bernheim and published by . This book was released on 2008 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper offers a new explanation of the dividend puzzle, based upon a model in which firms attempt to signal profitability by distrubuting cash to shareholders. I assume that dividends and repurchases are identical, except that dividends are taxed more heavily. Nevertheless, I demonstrate that, under certain plausible conditions, corporations will pay dividends. Indeed, some firms will actually pay dividends, and then retrieve a portion of these payments by issuing new equity (perhaps through a dividend reinvestment plan), despite the fact that this appears to create gratuitous tax liabilities. In addition to providing an explanation for the dividend puzzle, I also derive a number of strong results concerning corporate payout decisions and government tax policy. Some of these results are surprising. For example, the relationship between repurchases and firm quality is hump-shaped. Moreover, despite the fact that a higher dividend tax rate depresses dividend payments, it does not affect either government revenue or welfare.
Download or read book Dividend Puzzle written by Josephat Lotto and published by LAP Lambert Academic Publishing. This book was released on 2012-07 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: While we are still in the dilemma yet to have a consensus in our understanding of dividends, the empirical modeling of dividend policy has overwhelmingly relied on the model proposed by Lintner (1956). Despite the huge literature in dividends, a number of key issues remain unresolved and clear guidelines for an "optimal payout policy" have not emerged. The aim of this manuscript is to assess whether Lintner's dividend model supports dividend payments in corporate firms. In attempt to test whether the Lintner's model explains the dividend payments of the corporate firms, the manuscript tries to answer the following questions; Do corporate firms have long-term target dividend payout ratios?, Do managers focus more on dividend changes than on absolute levels?, Does Dividend follow a smoother path than earnings? And Are managers reluctant to make changes to dividends that might have to be reversed?
Download or read book The Stock Dividend Puzzle written by Mark Jonathon Paul Anson and published by . This book was released on 1990 with total page 237 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dividends as Signaling Device and the Disappearing Dividend Puzzle written by Dmitry Shapiro and published by . This book was released on 2013 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the paper we develop a generalization of the Baker and Wurgler (2012) signaling model where investors are loss-averse to dividend cuts. We apply our framework to study how firm's characteristics and manager's incentives affect payout policy properties. Our results are as follows. First, we show that firms with riskier future returns are less likely to pay dividends. However, those firms that do pay, payout more. Second, firms whose managers have a higher share of stock options are less likely to pay dividends. Third, there is a clientele effect that is investors' preferences impact the dividend policy. We show that if firm's investors are less sensitive to dividend cuts then the firm is less likely to pay dividends. Furthermore, two otherwise identical firms might have dramatically different payout policy solely due to difference in investors' preferences. Finally, we relate our model's results to the disappearing dividend puzzle.
Download or read book Dividend Policy and Valuation written by I. R. Davidson and published by . This book was released on 1986 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Is the Dividend Puzzle Solved written by Maria Rosa Borges and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The New Dividend Puzzle written by William W. Bratton and published by . This book was released on 2010 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dividend puzzle of ec ...
Download or read book Dividend Policy Puzzle written by Said M. Younes-Elfakhani and published by . This book was released on 1989 with total page 338 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Myopia the Dividend Puzzle and Share Prices written by S. J. Nickell and published by . This book was released on 1987 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Dividend Puzzle written by Snehal Banerjee and published by . This book was released on 2002 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Dividend Puzzle Unpuzzled written by Srdjan D. Stojanovic and published by . This book was released on 2007 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: A claim of solving the dividend puzzle, as formulated by F. Black, is made. Various stock pricing formulas are established, extending substantially the classical Miller-Modigliani theory of valuation of shares in a way to contradict their main conclusion that dividends are irrelevant. Indeed, the main stock pricing formula obtained implies that if the company's costs depend on the available cash, then dividends affect the stock pricing function in a substantial manner. On the other hand, if the company's costs are independent of the available cash, if the dividend tax rate is constant, and under a further technical condition, the established formula is consistent with the Miller-Modigliani's conclusion of dividend irrelevancy. The presented theory is in the context of Miller-Modigliani's stream of dividends approach to valuation of shares, facilitated by the latest developments in the Black-Scholes type pricing theory for incomplete multivariable markets. Various cash flows are modeled, some using Ito SDEs, so that the value of the company is not assumed to be tradable, yielding market incompleteness. In spite of market incompleteness, under some simplifying assumptions, referred to as the Basic Equity Model, the established stock pricing formulas yield unique prices, i.e., prices independent of the investor's risk aversion. Some more general models when this property of prices does not hold are considered as well. The intrinsic non-uniqueness of fair stock prices in such cases is settled by choosing the value of the investor's HARA risk aversion parameter, while if the CARA wealth utility function is used, fair prices remain unique.
Download or read book A Fisherian Approach to the Dividend Puzzle written by Naoya Mori and published by . This book was released on 2017 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 and transaction costs produce a V-shaped function that is inflected at the point where the dividend payment just satisfies the investor's current liquidity needs. Because, generally speaking, clientele effects and risk diversification are not completely compatible, a firm's dividend pattern is expected to be consistent with the median shareholder's intertemporal consumption allocation when consumption preferences dominate tax preferences for majority shareholders.
Download or read book The Dividend Puzzle written by Jack Broyles and published by . This book was released on 1996 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Dividend Puzzle and Tax written by Chris Jones and published by . This book was released on 1991 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:
