Journal ArticleDOI
Payout Policy in the 21st Century
Reads0
Chats0
TLDR
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.About:
This article is published in Journal of Financial Economics.The article was published on 2005-09-01. It has received 1577 citations till now. The article focuses on the topics: Dividend payout ratio & Dividend policy.read more
Citations
More filters
Journal ArticleDOI
The economic implications of corporate financial reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
Journal ArticleDOI
Corporate governance and firm cash holdings in the US
TL;DR: Using governance metrics based on antitakeover provisions and inside ownership, the authors found that firms with weaker corporate governance structures actually have smaller cash reserves. But there is only limited evidence that the presence of excess cash alters the overall relation between governance and profitability.
Journal ArticleDOI
Do Firms Rebalance Their Capital Structures
TL;DR: The authors empirically examined whether firms engage in dynamic rebalancing of their capital structures, while allowing for costly adjustment, and found that firms respond to changes in their equity value, due to price shocks or equity issuances, by adjusting their leverage over the two to four years following the change.
Journal ArticleDOI
The Economic Implications of Corporate Financial Reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
Journal ArticleDOI
Do Firms Rebalance Their Capital Structures
Mark T. Leary,Michael R. Roberts +1 more
TL;DR: The authors empirically examined whether firms engage in a dynamic rebalancing of their capital structures while allowing for costly adjustment and found that firms actively rebalance their leverage to stay within an optimal range.
References
More filters
Journal Article
The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Journal ArticleDOI
Dividend Policy, Growth, and the Valuation of Shares
TL;DR: In this paper, the effect of differences in dividend policy on the current price of shares in an ideal economy characterized by perfect capital markets, rational behavior, and perfect certainty is examined.
Journal ArticleDOI
The economic implications of corporate financial reporting
TL;DR: This paper found that the majority of managers would avoid initiating a positive NPV project if it meant falling short of the current quarter's consensus earnings, and more than three-fourths of the surveyed executives would give up economic value in exchange for smooth earnings.
Journal ArticleDOI
The theory and practice of corporate finance: Evidence from the field
TL;DR: The authors survey 392 CFOs about the cost of capital, capital budgeting, and capital structure and find some support for the pecking-order and trade-off capital structure hypotheses but little evidence that executives are concerned about asset substitution, asymmetric information, transactions costs, free cash flows, or personal taxes.