Corporate payout policy / Harry DeAngelo, Linda DeAngelo, Douglas J. Skinner

Author:: DeAngelo, Harry
Published:: Hanover, Mass. : NOW, [2009]
Copyright Date:: ©2009
Physical Description:: ix, 202 pages : illustrations ; 24 cm
Additional Creators:: DeAngelo, Linda and Skinner, Douglas J.

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Contents:

Machine generated contents note: 1.Introduction -- 1.1.Before Lintner, There Was Alfred P. Sloan, Jr. -- 1.2.Steve Ballmer and Bill Gates on Payout Policy -- 1.3.Organization of the Discussion -- 2.Basic Theory: The Need to Distribute Free Cash Flow is Foundational -- 2.1.Miller and Modigliani's Dividend Irrelevance Theorem -- 2.2.Payout Policy Matters When MM's Assumptions are Relaxed to Allow FCF Retention -- 2.3.Home-Made Dividends Do Not Replace the Need for Eventual Payouts -- 3.Security Valuation Problems, Agency Costs, and Optimal Payout Policy -- 3.1.Myers and Majluf (1984) and the Flexibility Benefits of FCF Retention -- 3.2.Jensen (1986) and the Agency Costs of FCF Retention -- 3.3.A Time-Varying Trade-off of the Agency Costs and Financial Flexibility Benefits of Retention -- 3.4.A Compact Summary of Main Theoretical Implications -- 4.Corporate Payouts: Scale, Concentration, and Earnings Linkage -- 4.1.The Declining Incidence of Firms that Pay Dividends and that Generate Positive Earnings -- 4.2.Payouts and Earnings are Highly Concentrated Among a Relatively Small Number of Firms -- 4.3.Stock Repurchases by Dividend-Paying Firms -- 4.4.Cash Accumulation Versus Payout: Agency, Leverage, and Cash Balance Consequences -- 5.Payouts and Earnings: A Closer Look -- 5.1.Earnings and "Measured" FCF as Proxies for "True" FCF -- 5.2.Payout Policy Conservatism: The Time Path of Dividends and the Time Path of Earnings -- 5.3.Transitory Versus Permanent Earnings and Changes in Payout Policy -- 5.4.The Managerial Reluctance to Cut Regular Dividends -- 5.5.Regular Dividends are What is Smoothed, and Not Total Payouts -- 5.6.Earnings and Payouts Over the Corporate Lifecycle -- 5.7.The Bottom Line on Lintner: What is Essential and What is Not -- 6.Are Dividends Disappearing? -- 6.1.The Concentration of the Dividend Supply and Its Implications -- 6.2.The Post-Fama and French (2001) Literature on the "Disappearing Dividends" Phenomenon -- 6.3.The Evolution of Payout Practices: What Has Changed and What Has Not -- 7.Why Do Dividends Survive? -- 7.1.Dividends Distribute Cash Proportionately to Stockholders -- 7.2.Payout Policies Have Both Transitory and Permanent Components -- 7.3.Can Stock Repurchases Serve as an Effective Permanent Distribution Vehicle? -- 8.Signaling and the Information Content of Dividends -- 8.1.Information About Earnings Versus Information About Payouts -- 8.2.Signaling: The Wrong Firms are Paying Dividends, and the Right Firms are Not -- 8.3.Dividends as Signals of Future Earnings: The Evidence -- 8.4.An Empirically Supported View of the Role of Dividend Signaling -- 8.5.Perceptions Matter: Stakeholder Relations and the Strategic Use of Dividend Policy -- 9.Behavioral Influences on Payout Policy -- 9.1.Investors' Behavior-Based Demand for Dividends -- 9.2.Managers' Behavioral Biases and Payout Policy -- 10.Clientele Effects: Transaction Costs, Institutional Ownership, and Payout Policy -- 10.1.Institutional Versus Individual Investor Clienteles -- 10.2.Clientele Theories are Incompatible with the Observed Homogeneity in Payout Practices -- 10.3.Institutional Versus Individual Stock Ownership and Dividend Policy -- 11.Controlling Stockholders and Payout Policy -- 11.1.Payout Policy and the Preferences of Controlling or Influential Stockholders -- 11.2.Exploitation of Minority Stockholders -- 11.3."Sleeping Dogs" Theory: Using Dividends to Pacify Stockholders -- 12.Taxes and Payout Policy -- 12.1.Why Do Firms Make Taxable Payouts if Payout Policy is Irrelevant in the Absence of Taxes? -- 12.2.Why Doesn't Long-Term Deferral Dominate Immediate Taxable Payouts? -- 12.3.The Impact of Changes in Tax Laws on Corporate Payout Policy -- 12.4.Why Haven't Tax-Advantaged Repurchases Replaced Dividends? -- 13.The Advantages of Stock Repurchases -- 13.1.Financial Flexibility Advantages of Stock Repurchases and Special Dividends -- 13.2.Repurchases Correct or Exploit Stock Market Undervaluation -- 13.3.Removing Low Valuation Stockholders from the Investor Population -- 13.4.Stock Repurchases Alter the Allocation of Voting Rights -- 13.5.Stock Repurchases as a Means of Increasing Reported EPS -- 13.6.Stock Repurchases and Executive Stock Option Plans -- 13.7.Transaction Cost Savings and Stock Repurchases -- 14.Conclusion: What We Know About Payout Policy and Promising Avenues for Future Research.

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ISBN:

9781601982049
1601982046

Related Titles:

Foundations and trends in finance

Note:

"This book is originally published as Foundations and trends in finance, volume 3, issue 2-3, ISSN: 1567-2395"--P. 4 of cover.

Bibliography Note:

Includes bibliographical references (pages 183-202).

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