German dividends typically carry a tax credit which makes the dividend worth 42.86% more to a taxable German shareholder than to a tax-exempt or foreign shareholder. This results in a penalty for foreign investors who buy and hold German dividend-paying stocks. I document that, as a result of the credit, the ex-day drop exceeds the dividend by more than one-half of the tax credit, and show that...

Suppose that the equity premium is forecasted by dividend yields. Even if such a relationship does exist, there is so much noise in the equity premium that estimation, inference and forecasting cannot be carried out using the faint signal coming from the dividend yields. For analyzing equity/dividend data, it is useful to quantify the signal in a given sample. We de…ne an index of signal streng...

We estimate the cross-sectional relationship between open market repurchases and accounting data for a large sample of dividend-paying and non-dividend-paying firms over a twelve year period (1984-95). Consistent with the hypothesis that firms use open market repurchases to reduce the agency costs of free cash flow, we find that repurchases are positively related to proxies for free cash flow a...

This note gives a quali…ed a¢ rmative answer to a natural question, asked by Ohlson and motivated by some earlier work, concerning the irrelevance of dividend policy to the calculation of equity in the context of an Ohlson style general linear accounting dynamic. Does Dividend Irrelevance occur when discounting at a rate of interest R if and only if R is set equal uniquely to the dominant eigen...

We consider a risk model with threshold strategy, where the insurance company pays off a certain percentage of the income as dividend whenever the current surplus is larger than a given threshold. We investigate the ruin time, ruin probability, and the total dividend, using methods and results from queueing theory.

The current paper presents a short survey of stochastic models of risk control and dividend optimization techniques for a nancial corporation. While being close to consump-tion/investment models of Mathematical Finance, dividend optimization models possess special features which do not allow them to be treated as a particular case of consumption/investment models. In a typical model of this sor...

We consider a risk model with threshold strategy, where the insurance company pays off a certain percentage of the income as dividend whenever the current surplus is larger than a given threshold. We investigate the ruin time, ruin probability and the total dividend, using methods and results from queueing theory.

In many developing countries and in East Asia’s NIEs, demographic change has favored economic growth. A demographic dividend or demographic window arises because the working-age populations are growing more rapidly than the number of consumers. This provides an extra boost to per capita income. As is widely appreciated, the demographic dividend is transitory. In the coming decades, the number o...