Bechmann, Ken; Raaballe, Johannes - In: The European Journal of Finance 16 (2010) 1, pp. 1-26
Firms pay out cash to shareholders using both dividends and share repurchases despite the fact that dividends are … developing a class of signaling models where the most efficient signal for a firm of sufficiently high quality always involves … payout of taxable cash dividends. If the high type is not of much higher quality than the low type, the cheapest way to deter …