File Download
There are no files associated with this item.
Supplementary
-
Citations:
- Appears in Collections:
Article: Financing Payouts
| Title | Financing Payouts |
|---|---|
| Authors | |
| Issue Date | 1-Apr-2024 |
| Publisher | Cambridge University Press |
| Citation | Journal of Financial and Quantitative Analysis, 2024 How to Cite? |
| Abstract | We find that 43% of firms that make payouts also raise capital during the same year, resulting in 31% of aggregate payouts being externally financed, primarily with debt. Most financed payouts cannot be explained by payout-smoothing in response to volatile earnings or investment—rather, they are the result of firms persistently setting payouts above free cash flow. In fact, 25% of aggregate payouts could not have been paid without the firms simultaneously raising capital. |
| Persistent Identifier | http://hdl.handle.net/10722/342141 |
| ISSN | 2021 Impact Factor: 4.337 2020 SCImago Journal Rankings: 4.657 |
| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Farre-Mensa, Joan | - |
| dc.contributor.author | Michaely, Roni | - |
| dc.contributor.author | Schmalz, Martin | - |
| dc.date.accessioned | 2024-04-09T07:30:02Z | - |
| dc.date.available | 2024-04-09T07:30:02Z | - |
| dc.date.issued | 2024-04-01 | - |
| dc.identifier.citation | Journal of Financial and Quantitative Analysis, 2024 | - |
| dc.identifier.issn | 0022-1090 | - |
| dc.identifier.uri | http://hdl.handle.net/10722/342141 | - |
| dc.description.abstract | <p>We find that 43% of firms that make payouts also raise capital during the same year, resulting in 31% of aggregate payouts being externally financed, primarily with debt. Most financed payouts cannot be explained by payout-smoothing in response to volatile earnings or investment—rather, they are the result of firms persistently setting payouts above free cash flow. In fact, 25% of aggregate payouts could not have been paid without the firms simultaneously raising capital. <br>Profitable firms with moderate growth use debt-financed payouts to jointly manage their leverage and cash, thus highlighting the close relationship between payout and capital structure decisions.<br></p> | - |
| dc.language | eng | - |
| dc.publisher | Cambridge University Press | - |
| dc.relation.ispartof | Journal of Financial and Quantitative Analysis | - |
| dc.title | Financing Payouts | - |
| dc.type | Article | - |
| dc.identifier.doi | 10.1017/S0022109024000231 | - |
| dc.identifier.eissn | 1756-6916 | - |
| dc.identifier.issnl | 0022-1090 | - |