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This paper examines the relationship between previous dividend payment policy and the cumulative abnormal return around … non-dividend firms or with no change in dividend payment than to those of dividend paying or changing in dividend payment … firms. We also provide evidence that dividend activities mitigate the effect of information asymmetry caused by ownership …
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This paper surveys the literature on payout policy. We start out by discussing several stylized facts that are important to the development of any comprehensive payout policy framework. We then describe the Miller and Modigliani (1961) payout irrelevance proposition, and consider the effect of...
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