Shareholder Preferences and Dividend Policy
AbstractThis paper develops a theory of choice among alternative procedures for distributing cash from corporations to shareholders. Despite the preferential tax treatment of capital gains for individual investors, it is shown that a majority of a firm's shareholders may support a dividend payment for small distributions. For larger distributions, an open-market stock repurchase is likely to be preferred by a majority of shareholders and, for the largest distributions, tender offer repurchases dominate. Copyright 1990 by American Finance Association.
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Bibliographic InfoArticle provided by American Finance Association in its journal Journal of Finance.
Volume (Year): 45 (1990)
Issue (Month): 4 (September)
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- Praveen Kumar, 1988. "Shareholder-Manager Conflict and the Information Content of Dividends," Review of Financial Studies, Society for Financial Studies, vol. 1(2), pages 111-136.
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"Capital Structure and dividend Irrelevance with Asymmetric Information,"
Cowles Foundation Discussion Papers
878, Cowles Foundation for Research in Economics, Yale University.
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- Stulz, ReneM., 1988. "Managerial control of voting rights : Financing policies and the market for corporate control," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 25-54, January.
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"Large Shareholders and Corporate Control,"
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- Ho, Thomas S. Y. & Michaely, Roni, 1988. "Information Quality and Market Efficiency," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 23(01), pages 53-70, March.
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