There are two common methods for pricing European call options on a stock with known dividends. The market practice is to use the Black-Scholes formula with the stock price reduced by the present value of the dividends. An alternative approach is to increase the strike price with the dividends compounded to expiry at the risk-free rate. These methods correspond to different stock price models a...

We compute the value of a firm that pays its cash flows each period through share repurchases in a dynamic environment where personal taxes are paid on realized capital gains and dividends. These results provide a measure of the personal tax advantages of equity financing relative to debt financing, which are often cited as increasing the cost of debt. The initial price of the firm depends on t...

This study looks at the influence of corporate governance and liquidity on dividend policy in utilities, infrastructure transportation sector companies listed Indonesia Stock Exchange 2018-2020. Corporate plays a role protecting interests business people company related to dividends. uses secondary data with purposive sampling technique produces 14 42 research data. Descriptive analysis methods...

Financial regulation imposes equity buffers on banks by restricting dividends. This paper studies constrained-efficient dividend policy when fund loans with and debt. In the model, bank shareholders consider costly a bank’s access to debt depends its shareholder value. response loan losses cut dividends, but eventually defer dividends too much. They do not internalize that commitment higher (an...

Article history: Received 21 September 2011 Received in revised form 28 December 2012 Accepted 7 January 2013 Available online 23 January 2013 This paper investigates how the state-controlling ownership and the ownership through corporate pyramid structures affect the dividend policies of publicly listed firms in China. We find that the state-controlled firms in China pay higher dividends (meas...

I examine the role of debt-financed special payments to shareholders in defending incumbent managements during proxy contests. This role is based on shareholder preference for dividends and the consequent linkage between dividends and managerial security. The model is used to explain why the seemingly contradictory phenomena of (i) wealth losses to shareholders and (ii) lack of any substantial ...

Around the world, trading in the stock market has gained huge attractiveness as a means through which, one can obtain vast profits. Attempting to profitably and precisely predict the financial market has long engrossed the interests and attention of bankers, economists and scientists alike. Stock market prediction is the act of trying, to determine the future value of a company’s stock or other...