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- Publisher Website: 10.1111/1540-6261.00474
- Scopus: eid_2-s2.0-0042170206
- WOS: WOS:000177396300004
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Article: Dividends, share repurchases, and the substitution hypothesis
Title | Dividends, share repurchases, and the substitution hypothesis |
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Authors | |
Issue Date | 2002 |
Citation | Journal of Finance, 2002, v. 57, n. 4, p. 1649-1684 How to Cite? |
Abstract | We show that repurchases have not only became an important form of payout for U.S. corporations, but also that firms finance their share repurchases with funds that otherwise would have been used to increase dividends. We find that young firms have a higher propensity to pay cash through repurchases than they did in the past and that repurchases have become the preferred form of initiating a cash payout. Although large, established firms have generally not cut their dividends, they also show a higher propensity to pay out cash through repurchases. These findings indicate that firms have gradually substituted repurchases for dividends. Our results also suggest that before 1983, regulatory constraints inhibited firms from aggressively repurchasing shares. |
Persistent Identifier | http://hdl.handle.net/10722/326031 |
ISSN | 2023 Impact Factor: 7.6 2023 SCImago Journal Rankings: 19.139 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Grullon, Gustavo | - |
dc.contributor.author | Michaely, Roni | - |
dc.date.accessioned | 2023-03-09T09:57:31Z | - |
dc.date.available | 2023-03-09T09:57:31Z | - |
dc.date.issued | 2002 | - |
dc.identifier.citation | Journal of Finance, 2002, v. 57, n. 4, p. 1649-1684 | - |
dc.identifier.issn | 0022-1082 | - |
dc.identifier.uri | http://hdl.handle.net/10722/326031 | - |
dc.description.abstract | We show that repurchases have not only became an important form of payout for U.S. corporations, but also that firms finance their share repurchases with funds that otherwise would have been used to increase dividends. We find that young firms have a higher propensity to pay cash through repurchases than they did in the past and that repurchases have become the preferred form of initiating a cash payout. Although large, established firms have generally not cut their dividends, they also show a higher propensity to pay out cash through repurchases. These findings indicate that firms have gradually substituted repurchases for dividends. Our results also suggest that before 1983, regulatory constraints inhibited firms from aggressively repurchasing shares. | - |
dc.language | eng | - |
dc.relation.ispartof | Journal of Finance | - |
dc.title | Dividends, share repurchases, and the substitution hypothesis | - |
dc.type | Article | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1111/1540-6261.00474 | - |
dc.identifier.scopus | eid_2-s2.0-0042170206 | - |
dc.identifier.volume | 57 | - |
dc.identifier.issue | 4 | - |
dc.identifier.spage | 1649 | - |
dc.identifier.epage | 1684 | - |
dc.identifier.isi | WOS:000177396300004 | - |