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Why Do Firms Pay Dividends? International Evidence on the Determinants of Dividend Policy
16 references·16 citing·35 second hopsampled
Why Do Firms Pay Dividends? International Evidence on the Determinants of Dividend Policy (2006)Why Do Firms Pay Dividends? International…Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2006)Estimating Standard Errors in…Dividend policy and the earned/contributed capital mix: a test of the life-cycle theory☆ (2006)Dividend policy and the earne…A Catering Theory of Dividends (2004)A Catering Theory of DividendsDividends, Share Repurchases, and the Substitution Hypothesis (2002)Dividends, Share Repurchases,…Are Dividend Changes a Sign of Firm Maturity? (2002)Are Dividend Changes a Sign o…Disappearing dividends: changing firm characteristics or lower propensity to pay? (2001)Disappearing dividends: chang…Taxes, Financing Decisions, and Firm Value (1998)Taxes, Financing Decisions, a…Corporate Ownership Around the World (1998)Corporate Ownership Around th…Agency Problems and Dividend Policies Around the World (1998)Agency Problems and Dividend …Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers (1986)Agency Costs of Free Cash Flo…Dividends, Dilution, and Taxes: A Signalling Equilibrium (1985)Dividends, Dilution, and Taxe…Dividend Policy under Asymmetric Information (1985)Dividend Policy under Asymmet…Two Agency-Cost Explanations of Dividends (1984)Two Agency-Cost Explanations …Risk, Return, and Equilibrium: Empirical Tests (1973)Risk, Return, and Equilibrium…Dividend Policy, Growth, and the Valuation of Shares (1961)Dividend Policy, Growth, and …DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES (1956)DISTRIBUTION OF INCOMES OF CO…Corporate governance and dividend policy: Evidence of tunneling from master limited partnerships (2018)Corporate governance and divi…EFFECT OF DIVIDEND POLICY ON STOCK PRICES (2015)EFFECT OF DIVIDEND POLICY ON …Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms (2015)Determinants of Dividend Poli…Corporate dividend policy in Thailand: Theory and evidence (2013)Corporate dividend policy in …Catering driven substitution in corporate payouts (2013)Catering driven substitution …A study on the effect of free cash flow and profitability current ratio on dividend payout ratio: Evidence from Tehran Stock Exchange (2013)A study on the effect of free…Effect of Dividends on Stock Prices– A Case of Chemical and Pharmaceutical Industry of Pakistan (2012)Effect of Dividends on Stock …The interaction between corporate social responsibility and value added intellectual capital: empirical evidence from Turkey (2011)The interaction between corpo…Life-Cycle Theory and Free Cash Flow Hypothesis: Evidence from Dividend Policy in Thailand (2011)Life-Cycle Theory and Free Ca…Cash holdings and share repurchases: International evidence (2011)Cash holdings and share repur…Agency problems, product market competition and dividend policies in Japan (2011)Agency problems, product mark…Does political economy reduce agency costs? Some evidence from dividend policies around the world (2010)Does political economy reduce…Corporate dividends decisions: evidence from Saudi Arabia (2010)Corporate dividends decisions…Catering effects in corporate dividend policy: The international evidence (2009)Catering effects in corporate…An International Analysis of Dividend Payment Behavior (2009)An International Analysis of …Flexibility and dividends (2008)Flexibility and dividendsCorporate financing and investment decisions when firms have information that investors do not have (1984)Investor Sentiment and the Cross‐Section of Stock Returns (2006)Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches (2008)When Is a Liability Not a Liability? Textual Analysis, Dictionaries, and 10‐Ks (2011)CAPITAL ASSET PRICES: A THEORY OF MARKET EQUILIBRIUM UNDER CONDITIONS OF RISK* (1964)The Behavior of Stock-Market Prices (1965)THE VALUATION OF RISK ASSETS AND THE SELECTION OF RISKY INVESTMENTS IN STOCK PORTFOLIOS AND CAPITAL BUDGETS**This paper is another in a series of interrelated theoretical and statistical studies of corporate financial and investment policies being made under grants from the Rockefeller Foundation, and more recently the Ford Foundation, to the Harvard Business School. The generous support for this work is most gratefully acknowledged. The author is also much indebted to his colleagues Professors Bishop, Christenson, Kahr, Raiffa, and (especially) Schlaifer, for extensive discussion and commentary on an earlier draft of this paper; but responsibility for any errors or imperfections remains strictly his own.[Professor Sharpe's paper, “Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk” (Journal of Finance, September 1964) appeared after this paper was in final form and on its way to the printers. My first section, which parallels the first half of his paper (with corresponding conclusions), sets the algebraic framework for sections II, III and VI, (which have no counterpart in his paper) and for section IV on the equilibrium prices of risk assets, concerning which our results differ significantly for reasons which will be explored elsewhere. Sharpe does not take up the capital budgeting problem developed in section V below.] (1975)The Cross-Section of Expected Stock Returns (1992)Common risk factors in the returns on stocks and bonds (1993)On Persistence in Mutual Fund Performance (1997)The Cost of Capital, Corporation Finance and the Theory of Investment (1958)The Pricing of Options and Corporate Liabilities (1973)Determinants of corporate borrowing (1977)Theory of the firm: Managerial behavior, agency costs and ownership structure (1976)A Survey of Corporate Governance (1997)Law and Finance (1998)Dividends and Expropriation (2001)Family Governance and Firm Performance: Agency, Stewardship, and Capabilities (2006)Corporate Governance in Emerging Economies: A Review of the Principal–Principal Perspective (2008)Job Market Signaling (1973)Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have (1984)Efficient Capital Markets: II (1991)Agency Problems and the Theory of the Firm (1980)Agency costs of free cash flow, corporate finance, and takeovers (1996)Specification Tests in Econometrics (1978)Econometric Analysis of Cross Section and Panel Data (2001)More Than Words: Quantifying Language to Measure Firms' Fundamentals (2008)Common Errors: How to (and Not to) Control for Unobserved Heterogeneity (2012)Corporate Immunity to the COVID-19 Pandemic (2020)The Capital Structure Puzzle (1984)Investor protection and corporate governance (2000)Investor Protection and Corporate Valuation (2002)The Economic Consequences of Legal Origins (2008)The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems (1993)Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? (1997)
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References

  • 1986Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers17,216 cited
  • 1973Risk, Return, and Equilibrium: Empirical Tests14,248 cited
  • 1961Dividend Policy, Growth, and the Valuation of Shares6,554 cited
  • 1985Dividend Policy under Asymmetric Information3,459 cited
  • 1956DISTRIBUTION OF INCOMES OF CORPORATIONS AMONG DIVIDENDS, RETAINED EARNINGS AND TAXES3,426 cited
  • 1998Agency Problems and Dividend Policies Around the World3,179 cited
  • 1984Two Agency-Cost Explanations of Dividends3,109 cited
  • 2001Disappearing dividends: changing firm characteristics or lower propensity to pay?3,039 cited
  • 2006Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches2,559 cited
  • 1998Corporate Ownership Around the World1,902 cited
  • 2006Dividend policy and the earned/contributed capital mix: a test of the life-cycle theory☆1,805 cited
  • 2002Dividends, Share Repurchases, and the Substitution Hypothesis1,467 cited
  • 1985Dividends, Dilution, and Taxes: A Signalling Equilibrium1,425 cited
  • 2004A Catering Theory of Dividends1,368 cited
  • 2002Are Dividend Changes a Sign of Firm Maturity?1,052 cited

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  • 1998Taxes, Financing Decisions, and Firm Value1,037 cited
  • Cited by

    • 2009Catering effects in corporate dividend policy: The international evidence139 cited
    • 2011Cash holdings and share repurchases: International evidence121 cited
    • 2010Corporate dividends decisions: evidence from Saudi Arabia111 cited
    • 2013Corporate dividend policy in Thailand: Theory and evidence99 cited
    • 2011Life-Cycle Theory and Free Cash Flow Hypothesis: Evidence from Dividend Policy in Thailand97 cited
    • 2018Corporate governance and dividend policy: Evidence of tunneling from master limited partnerships72 cited
    • 2008Flexibility and dividends68 cited
    • 2011Agency problems, product market competition and dividend policies in Japan60 cited
    • 2015Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms60 cited
    • 2012Effect of Dividends on Stock Prices– A Case of Chemical and Pharmaceutical Industry of Pakistan58 cited
    • 2009An International Analysis of Dividend Payment Behavior51 cited
    • 2013Catering driven substitution in corporate payouts51 cited
    • 2011The interaction between corporate social responsibility and value added intellectual capital: empirical evidence from Turkey48 cited
    • 2010Does political economy reduce agency costs? Some evidence from dividend policies around the world47 cited
    • 2015EFFECT OF DIVIDEND POLICY ON STOCK PRICES42 cited
    • 2013A study on the effect of free cash flow and profitability current ratio on dividend payout ratio: Evidence from Tehran Stock Exchange41 cited