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.
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Bibliographic InfoPaper provided by EconWPA in its series Finance with number 0411017.
Length: 27 pages
Date of creation: 10 Nov 2004
Date of revision:
Note: Type of Document - pdf; pages: 27
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