In this paper, we consider a company where surplus follows a rather general diffusion process and whose objective is to maximize expected discounted dividend payments. With each dividend payment there are transaction costs and taxes and it is shown in [7] that under some reasonable assumptions, optimality is achieved by using a lump sum dividend barrier strategy, i.e. there is an upper barrier ...

This paper examines the trading pattern around the ex-dividend day in the Estonian stock market between 2000 and 2006. An analysis of the Estonian income tax law confirmed that despite its simplicity there exists differential treatment of capital gains and dividends as well as tax heterogeneity among investors. An empirical analysis of the trading data showed a statistically significant abnorma...

This article examines whether the dividendpolicy of bank holding companies is used as a signal of their quality. The study found evidence to support the dividend signaling argument-that is, that there is a positive relationship between bank dividendsper share and bank quality rating. Aaiiitionally, an inverse relationship between the dividend payout ratio and bank quality was found. Therefore, ...

This paper investigates achieving financial independence by using the Dividend Reinvestment Plan (DRIP) in conjunction with dollar cost averaging to purchase stocks of quality companies that pay increasing dividends over the 15 year period of 1993 – 2007. To do this, it looks at two portfolios, each containing initially the same stocks, but the second replacing some of its stocks during the las...

Remainder theorems are very popular for finding the remainder in various types of problems. Inthis paper, we have proposed a simplified approach of finding the remainder using basicmathematics. This method is very effective in solving certain types of problems which involveexponentiation of dividend by some positive integer and those which have common factors intheir dividend an...

In this paper, we study the dividend payments prior to absolute ruin in a Markov-dependent risk process in which the claim occurrence and the claim amount are regulated by an external discrete time Markov chain. A system of integrodifferential equations with boundary conditions satisfied by the moment-generating function, the nth moment of the discounted dividend payments prior to absolute ruin...

In this paper, we consider the dividend payments prior to absolute ruin in a Markovian regime-switching risk process in which the rate for the Poisson claim arrivals and the distribution of the claim amounts are driven by an underlying Markov jump process. A system of integro-differential equations with boundary conditions satisfied by the moment-generating function, the n th moment of the disc...

I document that durable consumption growth is highly persistent and predicted by the price-dividend ratio. This provides strong and direct evidence for the existence of a highly persistent expected component. I also document robust evidence that durable consumption growth is left skewed and exhibits time-varying volatility. These properties motivate a model for durable consumption growth as dri...

This paper derives the optimal debt ratio and dividend payment strategies for an insurance company. Taking into account the impact of reinsurance policies and claims from the credit derivatives, the surplus process is stochastic that is jointly determined by the reinsurance strategies, debt levels, and unanticipated shocks. The objective is to maximize the total expected discounted utility of d...

The concept of dividend in transferable utility games was introduced by Harsanyi [1959]. It offers a unifying framework for studying various valuation concepts, from the Shapley value (symmetric as well as weighted) to the different notions of values introduced by Weber [1988]. Using the decomposition of the characteristic function used by Shapley [1953] to prove uniqueness of his value, the id...