A bibliometric review of dividend policy literature
Highlights. We carried out a systematic literature review on dividend policy. A detailed content analysis of 270 journal papers, followed by the identification of six significant streams of dividend policy research. The top three research clusters are risk governance and dividend policy, price-dividend relationship, and payment practices.
Determinants of dividend payout decisions
The paper examines the factors influencing dividend payout decisions. Our analysis is based on unbalanced panel data with 799 observations of companies from 15 countries over a period of 14 years. The study develops eight research hypotheses and uses a modelling approach based on the random effects panel probit model.
PDF AN AGENCY THEORY OF DIVIDEND TAXATION http://www.nber.org/papers/w13538
More recently, several papers have studied the e⁄ect of the large dividend tax cut enacted in 2003 in the U.S. (Chetty and Saez (2005), Brown et al. (2007), Nam et al. (2005)). Chetty and Saez documented four patterns: (1) Regular dividends rose sharply after the 2003 tax cut, with an implied net-of-tax elasticity of dividend payments of 0.75.
Dividend Policy: A Review of Theories and Empirical Evidence
The paper reaches at a conclusion that the famous statement of Fisher Black about dividend policy "the harder we look at the dividends picture, the more it seems like a puzzle, with pieces that ...
The Economic Effects of Dividend Taxation
DOI 10.3386/w1353. Issue Date May 1984. This paper tests several competing hypotheses about the economic effects of dividend taxation. It employs British data on security returns, dividend payout rates, and corporate investment, because unlike the United States, Britain has experienced several major dividend tax reforms in the last three decades.
PDF Capital Tax Reform and the Real Economy: The Effects of the 2003
no dividend tax cut. As a result, existing work on the real e⁄ects of dividend taxes has relied on indirect evidence such as the goodness-of--t of alternative structural investment equations (Poterba and Summers 1983). This paper tests for real e⁄ects of the 2003 dividend tax cut by using a set of una⁄ected
Dividend Taxes and Implied Cost of Equity Capital
We investigate whether dividend taxes affect firms' cost of capital by testing the relation between the implied cost of equity capital and a measure of the tax-penalized portion of dividend yield, which we define as the product of dividend yield and the dividend tax penalty. The results generally support the dividend tax capitalization hypothesis.
What do dividend changes reveal? Theory and evidence from a ...
Kuo NT (2013) Dividend tax signaling and the pricing of future earnings: a case of taxable stock dividends. Rev Quant Finan Acc 40:539-570 ... (2021) Firm value and payout suspensions during financial market distress. Swedish House of Finance Research Paper 9(21-10). Pettit RR (1972) Dividend announcements, security performance, and capital ...
Impact of corporate governance on dividend policy: A systematic
According to him, in the presence of a differential tax penalty for dividends compared to capital gains, it did not make sense for firms to pay dividends as it led to value destruction. ... The purpose of this research paper is to present a systematic literature review (SLR) of the impact of corporate governance on dividend pay-out. ...
PDF THE DETERMINANTS OF DIVIDEND POLICY Cezary Mech* RESEARCH PAPER No 259
about dividend irrelevance is binding, in the «real world», dividend payments are influenced by factors related to asymmetric information, agency costs, personal tax, bargaining position and transaction costs. This paper presents a model of dividend policy relevance. It uses two complementary frames of reference to analyze dividend policy.
PDF Econometrics Laboratory, UC Berkeley
Econometrics Laboratory, UC Berkeley
Dividend Policy: A Review of Theories and Empirical Evidence
The paper reaches at a conclusion that the famous statement of Fisher Black about dividend policy "the harder we look at the dividends picture, the more it seems like a puzzle, with pieces that ...
Does individual investors' dividend tax influence analyst forecast
In this paper, we examine the individual dividend tax policy in 2013 and 2015. We take three years before and after DTR as samples, so our sample period ranges from 2010 to 2018. ... The research of Li et al. (2017) based on the same reform shows that this reform does increase the willingness of firms to share out dividends. We further test ...
PDF The Impact of Dividend Policy on Shareholder Wealth: A Study on the
The principal aim of this research is to assess the impact of dividend policy (variable being dividend payout ratio) on shareholder wealth (variable being market value of a ... lack of consideration of the tax implications on dividends and share prices. Similarly, Bhattacharya (1979) argues that this theory is flawed under perfect capital ...
Dividend Taxation and Intertemporal Tax Arbitrage
Korinek, Anton & Stiglitz, Joseph E., 2009. "Dividend taxation and intertemporal tax arbitrage," Journal of Public Economics, Elsevier, vol. 93 (1-2), pages 142-159, February. citation courtesy of. Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating ...
PDF Determinants of Dividend Policy: A Systematic Literature Review
Research Paper Determinants of Dividend Policy: A Systematic Literature Review Dr. Monika Assistant Professor Motilal Nehru College (Eve.) ... clientele effect and effect of tax (Miller and Modigliani, 1961), dividend signaling (Miller and Rock, 1985), agency cost (Jensen, 1986) catering explanation for dividend (Baker and Wurgler, 2004a, 2004b ...
Dividends and Dividend Policy
The chapter investigates several key issues such as whether managers perceive that dividend policy creates shareholder value and the factors that influence a firm's dividend policy. By focusing on those studies that attempt to describe dividend policy in practice, this chapter shows how survey research contributes to resolving the dividend puzzle.
Dividend Taxes and the Allocation of Capital
The reform led to an almost threefold increase in the dividend tax rate, from 15.5 percent to 46 percent. Ultimately, the increase affected 75 percent of all French firms. Our period of study was 2008-2016. All firms in our sample pay an entity-level tax, and as such are similar to a U.S. "C-corp.". In France, pass-through entities ...
[PDF] Dividend dynamics and shareholders' wealth: An empirical
This paper provides a comprehensive analysis of the relationship between dividend policy and shareholders' wealth and the impact of dividend policy on shareholders' wealth. Dividend policy, a critical aspect of corporate finance, plays a pivotal role in shaping the financial landscape of a firm. Though thousands of researches in developed and developing nations have been done in this area ...
PDF National Bureau of Economic Research
This paper investigates the 2013 three-fold increase in the French dividend tax rate. Using administrative data covering the universe of firms from 2008- 2017 and a quasi-experimental setting, we find that firms swiftly cut dividend payments and used this tax-induced increase in
The Effect of Dividend Policy on Stock Price: Evidence from the Indian
SUBMIT PAPER. Asia-Pacific Journal of Management Research and Innovation. Journal indexing and metrics. ... By paying dividends, the company also has to pay a dividend distribution tax. Thus, it increases the company's cost and therefore reduces the available funds for future investments. ... Data and Research Methodology Findings; 1999 ...
Determinants of dividends among Indian firms—An empirical study
This research paper aims to understand the determinants of dividend pay-out among Indian firms. The study analyzes the dividend trends of 31,234 firms representing 15 different industrial sectors. Construction materials, machinery, and transportation equipment sectors were the most dividend intensive sectors in India.
Capital Tax Reform and the Real Economy: The Effects of the 2003 ...
Revision Date January 2018. This paper tests whether the 2003 dividend tax cut—one of the largest reforms ever to a U.S. capital tax rate—stimulated corporate investment and increased labor earnings, using a quasi-experimental design and U.S. corporate tax returns from years 1996-2008. I estimate that the tax cut caused zero change in ...
COMMENTS
Highlights. We carried out a systematic literature review on dividend policy. A detailed content analysis of 270 journal papers, followed by the identification of six significant streams of dividend policy research. The top three research clusters are risk governance and dividend policy, price-dividend relationship, and payment practices.
The paper examines the factors influencing dividend payout decisions. Our analysis is based on unbalanced panel data with 799 observations of companies from 15 countries over a period of 14 years. The study develops eight research hypotheses and uses a modelling approach based on the random effects panel probit model.
More recently, several papers have studied the e⁄ect of the large dividend tax cut enacted in 2003 in the U.S. (Chetty and Saez (2005), Brown et al. (2007), Nam et al. (2005)). Chetty and Saez documented four patterns: (1) Regular dividends rose sharply after the 2003 tax cut, with an implied net-of-tax elasticity of dividend payments of 0.75.
The paper reaches at a conclusion that the famous statement of Fisher Black about dividend policy "the harder we look at the dividends picture, the more it seems like a puzzle, with pieces that ...
DOI 10.3386/w1353. Issue Date May 1984. This paper tests several competing hypotheses about the economic effects of dividend taxation. It employs British data on security returns, dividend payout rates, and corporate investment, because unlike the United States, Britain has experienced several major dividend tax reforms in the last three decades.
no dividend tax cut. As a result, existing work on the real e⁄ects of dividend taxes has relied on indirect evidence such as the goodness-of--t of alternative structural investment equations (Poterba and Summers 1983). This paper tests for real e⁄ects of the 2003 dividend tax cut by using a set of una⁄ected
We investigate whether dividend taxes affect firms' cost of capital by testing the relation between the implied cost of equity capital and a measure of the tax-penalized portion of dividend yield, which we define as the product of dividend yield and the dividend tax penalty. The results generally support the dividend tax capitalization hypothesis.
Kuo NT (2013) Dividend tax signaling and the pricing of future earnings: a case of taxable stock dividends. Rev Quant Finan Acc 40:539-570 ... (2021) Firm value and payout suspensions during financial market distress. Swedish House of Finance Research Paper 9(21-10). Pettit RR (1972) Dividend announcements, security performance, and capital ...
According to him, in the presence of a differential tax penalty for dividends compared to capital gains, it did not make sense for firms to pay dividends as it led to value destruction. ... The purpose of this research paper is to present a systematic literature review (SLR) of the impact of corporate governance on dividend pay-out. ...
about dividend irrelevance is binding, in the «real world», dividend payments are influenced by factors related to asymmetric information, agency costs, personal tax, bargaining position and transaction costs. This paper presents a model of dividend policy relevance. It uses two complementary frames of reference to analyze dividend policy.
Econometrics Laboratory, UC Berkeley
The paper reaches at a conclusion that the famous statement of Fisher Black about dividend policy "the harder we look at the dividends picture, the more it seems like a puzzle, with pieces that ...
In this paper, we examine the individual dividend tax policy in 2013 and 2015. We take three years before and after DTR as samples, so our sample period ranges from 2010 to 2018. ... The research of Li et al. (2017) based on the same reform shows that this reform does increase the willingness of firms to share out dividends. We further test ...
The principal aim of this research is to assess the impact of dividend policy (variable being dividend payout ratio) on shareholder wealth (variable being market value of a ... lack of consideration of the tax implications on dividends and share prices. Similarly, Bhattacharya (1979) argues that this theory is flawed under perfect capital ...
Korinek, Anton & Stiglitz, Joseph E., 2009. "Dividend taxation and intertemporal tax arbitrage," Journal of Public Economics, Elsevier, vol. 93 (1-2), pages 142-159, February. citation courtesy of. Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating ...
Research Paper Determinants of Dividend Policy: A Systematic Literature Review Dr. Monika Assistant Professor Motilal Nehru College (Eve.) ... clientele effect and effect of tax (Miller and Modigliani, 1961), dividend signaling (Miller and Rock, 1985), agency cost (Jensen, 1986) catering explanation for dividend (Baker and Wurgler, 2004a, 2004b ...
The chapter investigates several key issues such as whether managers perceive that dividend policy creates shareholder value and the factors that influence a firm's dividend policy. By focusing on those studies that attempt to describe dividend policy in practice, this chapter shows how survey research contributes to resolving the dividend puzzle.
The reform led to an almost threefold increase in the dividend tax rate, from 15.5 percent to 46 percent. Ultimately, the increase affected 75 percent of all French firms. Our period of study was 2008-2016. All firms in our sample pay an entity-level tax, and as such are similar to a U.S. "C-corp.". In France, pass-through entities ...
This paper provides a comprehensive analysis of the relationship between dividend policy and shareholders' wealth and the impact of dividend policy on shareholders' wealth. Dividend policy, a critical aspect of corporate finance, plays a pivotal role in shaping the financial landscape of a firm. Though thousands of researches in developed and developing nations have been done in this area ...
This paper investigates the 2013 three-fold increase in the French dividend tax rate. Using administrative data covering the universe of firms from 2008- 2017 and a quasi-experimental setting, we find that firms swiftly cut dividend payments and used this tax-induced increase in
SUBMIT PAPER. Asia-Pacific Journal of Management Research and Innovation. Journal indexing and metrics. ... By paying dividends, the company also has to pay a dividend distribution tax. Thus, it increases the company's cost and therefore reduces the available funds for future investments. ... Data and Research Methodology Findings; 1999 ...
This research paper aims to understand the determinants of dividend pay-out among Indian firms. The study analyzes the dividend trends of 31,234 firms representing 15 different industrial sectors. Construction materials, machinery, and transportation equipment sectors were the most dividend intensive sectors in India.
Revision Date January 2018. This paper tests whether the 2003 dividend tax cut—one of the largest reforms ever to a U.S. capital tax rate—stimulated corporate investment and increased labor earnings, using a quasi-experimental design and U.S. corporate tax returns from years 1996-2008. I estimate that the tax cut caused zero change in ...