We consider the problem of maximizing the expected utility of discounted dividend payments of an insurance company. The risk process, describing the insurance business of the company, is modeled as Brownian motion with drift. We mainly consider power utility and special emphasis is given to the limiting behavior when the coefficient of risk aversion tends to zero. We then find convergence of th...

This study investigates the market reaction to dividend change announcements at the Istanbul Stock Exchange. A sample of 184 announcements made by 46 companies during the period 2005 to 2008 is analyzed by using the event study methodology. The results suggest that the market reacts positively to dividend increases, negatively to dividend decreases and does not react when dividends are not chan...

We consider an insurance company whose surplus follows a diffusion process with proportional reinsurance and impulse dividend control. Our objective is to maximize expected discounted dividend payouts to shareholders of the company until the time of bankruptcy. To meet some essential requirements of solvency control e.g., bankruptcy not soon , we impose some constraints on the insurance company...

Explaining dividend policy has been one of the most difficult challenges facing financial economists. Despite decades of study, we have yet to completely understand the factors that influence dividend policy and the manner in which these factors interact.The aim of this paper is to examine the relation between dividend policy and share price volatility in Tehran Stock Exchange (TSE). The analys...

Dividend policy has long been an issue of interest in the financial literature. To date, a number of studies published on agency costs and dividend policy but most of them are on developed markets, It is well known that the emerging markets are quite different from developed markets in all respects. So, the existing published evidence is of limited relevance in identifying the influence of agen...

Recent empirical studies of dividend taxation have found that: (1) dividend tax cuts cause large, immediate increases in dividend payouts, and (2) the increases are driven by firms with high levels of share ownership among top executives or the board of directors. These findings are inconsistent with existing theories of dividend taxation. We show that an agency model in which managers and shar...

Using a sample of 22,389 US firm-year observations over the period from 1991 to 2012, we find that high CSR firms pay more dividends than low CSR firms. This is consistent with our expectation that socially responsible firms may use the dividend policy to manage the agency problems related to overinvestment in CSR. The analysis of individual components of CSR provides strong support for this ma...

Abstract In this paper, we model the insurance company’s surplus by a compound Poisson risk model, where process can only be observed at random observation times. It is assumed that insurer observes its level periodically to decide on dividend payments and capital injection interobservation time having an $\operatorname{Erlang}(n)$ <mml:...

This note reinterprets methods that seek to use the aggregate dividend price ratio to predict aggregate stock market returns; specifically, methods which use information about time-varying changes in the dividend-price ratio process to improve the prediction equation. It argues that the empirical evidence is still too weak to suggest practical usefulness of these estimators. ∗We thank John Coch...