We examine the relation between the shareholder base and payout policy. Consistent with the idea that the shareholder base is related to the cost of external financing we find that fi rms with small shareholder bases have lower payout levels and maintain higher cash holdings. We show that undertaking an open market repurchase results in a signi cant reduction in the size of the shareholder base...

We examine the effect of corporate governance on the use of dividends and repurchases, composition of payout, and inclusion of a pre-commitment feature in the payout policy. We find that dividend payout is decreasing in governance quality. Corporate governance has a mixed effect on repurchases: good external governance prompts managers to repurchase more and to use repurchases as the only form ...

The average annual inflation-adjusted amount paid out through dividends and repurchases by public industrial firms is more than three times larger from 2000 to 2019 1971 1999. We find that an increase in aggregate corporate income accounts for 37% of the payouts, payout rate 63%. Firms have higher rates 2000s not only because they are older, larger, free cash flow, but also pay their flow. Thou...

In this study, we examine the effects of geopolitical risk on corporate payout policy. Exploiting a news-based index risk, find that firms adopt more conservative policy by reducing share repurchases in response to greater whereas cash dividends are insignificant. Further analysis suggests flow uncertainty and financial distress two potential channels through which affects We also show repurcha...

and two anonymous referees. Errors remain the responsibility of the authors. We are grateful to Helen Cochrane funded by CMPO, Bristol for collecting some of the data used in this study. Abstract This paper examines the impact of a company's pension contributions on its dividend and investment policies. The effects of shocks to cash flows on these corporate expenditures are identified by change...

An increase in the trading volume of dividend-declaring shares at a particular moment may indicate that company is performing well and has promising prospects. The dividend announcement includes crucial information for investors seeking abnormal returns. This study seeks to determine assess whether there difference between AR TVA before following release cash dividends. study's data analysis me...

In this paper, we model the cash surplus (or equity) of a risky business with Brownian motion (with drift). Owners can take out in form “dividends”, subject to transaction costs. However, if hits 0 then ruin occurs and cannot operate any more. We consider two types dividend distributions: (i) periodic, regular ones (that is, dividends be paid only at countably many points time, according specif...

It is argued that due to inconsistencies in existing methods to approximate the prices of equity options on assets which pay out fixed cash dividends at future dates, a new approach to this problem may be useful. Logically consistent methods which are guaranteed to exclude arbitrage exist, but they are not very popular in practice due to their computational complexity. An algorithm is defined w...

Much of the literature on the usefulness of company financial statement information focuses on the United States and the United Kingdom. But, these two countries are characterized by similar and rigid regulatory and enforcement regime. This study provides direct evidence from the Netherlands – a country with liberal financial reporting environment and different corporate governance regime. It e...

Business strategy's impact on firm cash holdings and dividend payouts has largely remained unexplored. We identify a fundamental direct link between firm's business strategy its payouts. Analysing two large samples of data US firms over the period 1992–2017, we find strong evidence that prospectors (defenders) are likely to hold more (less) pay less (more) dividends than other firms. Further an...