Advanced Search
MyIDEAS: Login

Dividends, sustainability and relevance

Contents:

Author Info

  • A. Mantovi

    ()

Abstract

Sustainability and relevance of dividend policies are addressed in terms of an optimal control model set forth by Feichtinger et al. (2007), by means of which two different capitalization measures,accounting for dividends and capital gains, can be given explicit representation. In the light of the theory of capital tailored by Dorfman (1969), an intertemporal economic measure of shareholder value is introduced, together with the associated shadow price. Relevant tradeoffs and scale effects are thoroughly discussed, in connection with the Modigliani-Miller irrelevance framework. The ‘lens’ property of the model is interpreted as a benchmark property of payout policies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2011-03.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2011-EP03.

as in new window
Length: 28
Date of creation: 2011
Date of revision:
Handle: RePEc:par:dipeco:2011-ep03

Contact details of provider:
Postal: Via J.F. Kennedy 6, 43100 PARMA (Italy)
Phone: 0521/902454
Fax: 0521/902400
Email:
Web page: http://economia.unipr.it/de
More information through EDIRC

Related research

Keywords: Optimal control. Shadow prices. Scale effects. Modigliani-Miller irrelevance;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Skinner, Douglas J., 2008. "The evolving relation between earnings, dividends, and stock repurchases," Journal of Financial Economics, Elsevier, vol. 87(3), pages 582-609, March.
  2. Stewart C. Myers, 2001. "Capital Structure," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 81-102, Spring.
  3. Alon Brav & John R. Graham & Campbell R. Harvey & Roni Michaely, 2003. "Payout Policy in the 21st Century," NBER Working Papers 9657, National Bureau of Economic Research, Inc.
  4. Amy Dittmar, 2008. "Corporate Cash Policy and How to Manage it with Stock Repurchases," Journal of Applied Corporate Finance, Morgan Stanley, vol. 20(3), pages 22-34.
  5. Merton H. Miller & Franco Modigliani, 1961. "Dividend Policy, Growth, and the Valuation of Shares," The Journal of Business, University of Chicago Press, vol. 34, pages 411.
  6. Feichtinger, G. & Hartl, R.F. & Kort, P.M. & Yegorov, Y.A., 2007. "A new solution property in optimal control: The lens," Open Access publications from Tilburg University urn:nbn:nl:ui:12-194288, Tilburg University.
  7. Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, vol. 59(5), pages 817-31, December.
  8. Jensen, Michael C, 1986. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers," American Economic Review, American Economic Association, vol. 76(2), pages 323-29, May.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:par:dipeco:2011-ep03. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrea Lasagni).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.