Cash Distributions to Shareholders

Datos Bibliográficos

ID4029591
AutoresLaurie Simon Bagwell (Northwestern University), John B Shoven (Professor of Economics, Stanford University, Director of the Center for Economic Policy Research, and Research Fellow, National Bureau of Economic Research, all in Stanford, California.)
Año1989
Volumen3
Número3
Páginas129-140
Fecha de publicación1989-08-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Journal of Economic Perspectives (JOURNAL)
Identificadores de la revistaISSN: 0895-3309 • E-ISSN: 1944-7965
EditorialAmerican Economic Association (PUBLISHER • US)
DOI10.1257/jep.3.3.129
OpenAlexW2097025272
IdiomaEN
Citas recibidas8
Referencias citadas15

Economists have long been puzzled by why firms pay dividends when alternative methods of rewarding shareholders and financiers exist which involve less taxes. This paper will highlight the fact that firms can distribute cash to equity holders in ways more lightly taxed than dividends. The two methods we examine are share repurchase programs and cash-financed mergers and acquisitions. So why should cash distributions from firms to shareholders ever take the form of dividends? This paper first provides evidence on the explosive growth in dividend cash payments, and then discusses how this evidence should affect theories about corporate finance

Business · Cash · Corporate governance · Dividend · Dividend policy · Economics · Monetary economics · Payment · Shareholder · Corporate Finance and Governance · Corporate Taxation and Avoidance · Financial Reporting and Valuation Research · Law · Finance