Chapter 12 - Dividend and share repurchase decisions. This chapter include objectives: Define ‘dividend policy’ and understand some institutional features of dividends and share repurchases, explain why dividend policy is irrelevant to shareholders’ wealth in a perfect capital market with no taxes, outline the imputation and capital gains tax systems and explain their effects on returns to investors,...
Chapter 6 - Dividends and share repurchases: Basics. This chapter describe regular cash dividends, extra dividends, stock dividends, stock splits, and reverse stock splits, including their expected effect on a shareholder’s wealth and a company’s financial ratios.
From 1992 to 2000, the pace of merger activity rose to unprecedented
levels. An environment of sustained economic growth
and rising stock prices facilitated transactions. Toward the end
of 2000, the economic climate shifted and merger activity in the
fourth quarter declined. The economy showed only small growth
during the first quarter of 2001. Excess capacity in a number of
industries had developed, and sales and profit disappointments
began to widen. The business cycle had returned. Valuations in
Internet companies and other high-tech industries have been
sharply revised downward.
CHAPTER 14 Distributions to shareholders:
Dividends and share repurchases
Theories of investor preferences Signaling effects Residual model Dividend reinvestment plans Stock dividends and stock splits Stock repurchases
What is dividend policy?
The decision to pay out earnings versus retaining and reinvesting them.
Chapter 17 cover a variety of topics related to dividends and corporate payout policies. After studying this chapter, you should understand: Dividend types and how dividends are paid, the issues surrounding dividend policy decisions, the difference between cash and stock dividends, why share repurchases are an alternative to dividends.
Chapter 14 introduces you to dividends and dividend policy. In this chapter, you will: Understand dividend types and how they are paid, understand the issues surrounding dividend policy decisions, understand the difference between cash and share dividends, understand why share repurchases are an alternative to dividends.
This paper contributes to the literature in several ways. Our study is the first to document
that firms are more likely to split their stocks before acquisition announcements and the first
to attempt to explain why they might do so. This paper also contributes to the literature on
managerial opportunistic behaviors. Prior studies identify possible manipulation tools such as
earnings management (Erickson and Wang, 1999; Louis, 2004) and share repurchase (Chan,
Ikenberry, Lee, and Wang, 2005).
Chapter 7 - Dividends and share repurchases: Analysis. This chapter compare theories of dividend policy and explain implications of each for share value, given a description of a corporate dividend action.
Open-end mortgage Mortgage against which additional debts may be issued. Related: closed-end mortgage.
Open-market operation Purchase or sale of government securities by the monetary authorities to increase or decrease the domestic money supply. Open-market purchase operation A systematic program of repurchasing shares of stock in market transactions at current market prices, in competition with other prospective investors.