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- Publisher Website: 10.1016/j.jfineco.2021.06.029
- Scopus: eid_2-s2.0-85110510113
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Article: Disappearing and Reappearing Dividends
Title | Disappearing and Reappearing Dividends |
---|---|
Authors | |
Keywords | Dividends Payout policy Stock repurchases |
Issue Date | 2022 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec |
Citation | Journal of Financial Economics, 2022, v. 143 n. 1, p. 207-226 How to Cite? |
Abstract | We decompose the decrease (1970s–2000) and subsequent recovery (2000–2018) in the fraction of dividend-paying firms. Changes in firm characteristics and proclivity to pay (probability of paying dividends conditional on characteristics) each drive half of the dividend disappearance. A higher proclivity drives 82% of the dividend reappearance. The remaining 18% is driven by a single characteristic: reduced earnings volatility. Changing characteristics are associated with low-profitability, high-earnings-volatility firms. Changing proclivity is associated with stable, profitable firms. Rather than dividend initiations or omissions, newly listed and delisted firms drive trends. Finally, the magnitude and duration of disappearing total payout is substantially smaller than that of dividends, indicating some substitution between dividends and repurchases. |
Persistent Identifier | http://hdl.handle.net/10722/300869 |
ISSN | 2023 Impact Factor: 10.4 2023 SCImago Journal Rankings: 13.655 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Michaely, R | - |
dc.contributor.author | Moin, A | - |
dc.date.accessioned | 2021-07-06T03:11:20Z | - |
dc.date.available | 2021-07-06T03:11:20Z | - |
dc.date.issued | 2022 | - |
dc.identifier.citation | Journal of Financial Economics, 2022, v. 143 n. 1, p. 207-226 | - |
dc.identifier.issn | 0304-405X | - |
dc.identifier.uri | http://hdl.handle.net/10722/300869 | - |
dc.description.abstract | We decompose the decrease (1970s–2000) and subsequent recovery (2000–2018) in the fraction of dividend-paying firms. Changes in firm characteristics and proclivity to pay (probability of paying dividends conditional on characteristics) each drive half of the dividend disappearance. A higher proclivity drives 82% of the dividend reappearance. The remaining 18% is driven by a single characteristic: reduced earnings volatility. Changing characteristics are associated with low-profitability, high-earnings-volatility firms. Changing proclivity is associated with stable, profitable firms. Rather than dividend initiations or omissions, newly listed and delisted firms drive trends. Finally, the magnitude and duration of disappearing total payout is substantially smaller than that of dividends, indicating some substitution between dividends and repurchases. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jfec | - |
dc.relation.ispartof | Journal of Financial Economics | - |
dc.subject | Dividends | - |
dc.subject | Payout policy | - |
dc.subject | Stock repurchases | - |
dc.title | Disappearing and Reappearing Dividends | - |
dc.type | Article | - |
dc.identifier.email | Michaely, R: ronim@hku.hk | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jfineco.2021.06.029 | - |
dc.identifier.scopus | eid_2-s2.0-85110510113 | - |
dc.identifier.hkuros | 323226 | - |
dc.identifier.volume | 143 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 207 | - |
dc.identifier.epage | 226 | - |
dc.identifier.isi | WOS:000723734200009 | - |
dc.publisher.place | Netherlands | - |