Journal ArticleDOI
Financial flexibility and the choice between dividends and stock repurchases
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In this paper, the authors measure the growth in open market stock repurchases and the manner in which stock repurchase and dividends are used by U.S. corporations, and find that stock buybacks are very procyclical, while dividends increase steadily over time.About:
This article is published in Journal of Financial Economics.The article was published on 2000-09-01. It has received 782 citations till now. The article focuses on the topics: Share repurchase & Operating cash flow.read more
Citations
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Journal ArticleDOI
Disappearing dividends: changing firm characteristics or lower propensity to pay?
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: The proportion of firms paying cash dividends falls from 66.5% in 1978 to 20.8% in 1999, due in part to the changing characteristics of publicly traded firms as discussed by the authors.
Journal ArticleDOI
Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?
TL;DR: The authors showed that the population of publicly traded firms tilts increasingly toward small firms with low profitability and strong growth opportunities characteristics typical of firms that have never paid dividends, and controlling for characteristics, firms become less likely to pay dividends.
Journal ArticleDOI
Payout Policy in the 21st Century
TL;DR: The authors survey 384 financial executives and conduct in depth interviews with an additional 23 to determine the factors that drive dividend and share repurchase decisions, finding that maintaining the dividend level is on par with investment decisions while repurchases are made out of the residual cash flow after investment spending.
Journal ArticleDOI
Dividends, Share Repurchases, and the Substitution Hypothesis
Gustavo Grullon,Roni Michaely +1 more
TL;DR: In this article, the authors show that repurchases have become an important form of payout for U.S. corporations and that firms finance their share repurchase with funds that otherwise would have been used to increase dividends.
Journal ArticleDOI
Payout Policy in the 21st Century
TL;DR: The authors survey 384 financial executives and conduct in depth interviews with an additional 23 to determine the factors that drive dividend and share repurchase decisions, finding that maintaining the dividend level is on par with investment decisions, while repurchases are made out of the residual cash flow after investment spending.
References
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Journal ArticleDOI
Dividend yields and expected stock returns
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the power of dividend yields to forecast stock returns, measured by regression R2, increases with the return horizon, and the authors offer a two-part explanation: high autocorrelation causes the variance of expected returns to grow faster than the return-horizon.
Distribution of incomes of corporations among dividends, retained earnings and taxes
TL;DR: Lintner as discussed by the authors discusses the distribution of income of corporations among dividends, retained earnings, and taxes in the context of the Sixtyeighth Annual Meeting of the American Economic Association.
ReportDOI
Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends
TL;DR: In this article, the authors developed the efficient markets model in Section I to clarify some theoretical questions that may arise in connection with the inequality, and some similar inequalities will be derived that put limits on the standard deviation of the innovation in price and the variance of the change in price.
Journal ArticleDOI
The Dividend Puzzle
TL;DR: In this paper, the authors claim that the answers to these questions are not obvious at all and that the harder we look at the dividend picture, the more it seems like a puzzle, with pieces that just don't fit together.
Journal ArticleDOI
Market underreaction to open market share repurchases
TL;DR: In this article, the authors examine long run firm performance following open market share repurchase announcements, 1980-1990, and find that the average abnormal four-year buy-and-hold return measured after the initial announcement is 12.1%.
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Disappearing dividends: changing firm characteristics or lower propensity to pay?
Eugene F. Fama,Kenneth R. French +1 more