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...

For nearly half a century, the literature on dividend payments has questioned why firms pay dividends at all. Two competing models have emerged to explain this. In low investor protection regimes, corporate insiders give dividends to signal trust. In high-protection regimes, outside investors have the power to demand dividends. Using a unique laboratory experiment, our results back the empirica...

The paper analyses the determinants of dividend payments and tests the hypothesis that companies pay dividends at the expense of investing in research and development (R&D). The evidence suggests that four fundamental factors – size, growth, profitability and risk – determine the decision to pay dividends but also to invest in R&D. Consistent with previous evidence, the average R&D intensity of...

In this paper, we study two optimisation settings for an insurance company, under the constraint that terminal surplus at a deterministic and finite time T follows normal distribution with given mean variance. both cases, of company is assumed to follow Brownian motion drift. First, allow pay dividends seek maximise expected discounted dividend payments or minimise ruin probability constraint. ...

This paper investigates the impact of coronavirus disease 2019 pandemic on investors' trading behaviors around ex-dividend dates in Europe. The sudden decrease number companies paying dividends reduced opportunities to capture dividends. Thus, firms that maintained dividend payments during attracted more interest than before. led a doubling magnitude stock return patterns usually observed days....

Abstract This paper focuses on the amount of dividends paid to shareholders by companies in different countries and examines whether being a country where legal system offers weak shareholder protection affects dividend payments distributed shareholders. The sample used for this study comprises 8,045 from 46 countries. Seven individual factors affecting were examined. Out seven factors, only tw...

Payouts play an important role in the relationship between shareholders and agents in terms of rewarding the decisions of shareholders. Previous studies have observed that payout decisions appear in different ways depending on an industry's financial and operating structures. Since the airline industry has been characterized as high debt dependency, this study presumes distinctive characteristi...

This paper investigates the supply of Dividend Reinvestment Plans (DRPs) in relation to corporate governance and imputation tax system Australia. Since DRPs are popular among large firms, we compiled data 300 largest companies listed on Australian stock exchange (ASX300) during 2001-2013. Tobit regression method is used estimate models. Results indicate that good leads higher DRPs. We also foun...