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Securities regulation must balance the dual objectives of mitigating market abuse and permitting issuers to manage their capital flexibly and efficiently. This paper examines this issue in the specific context of the regulation of share buybacks within the insider dealing framework in a...
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We examine the impact of special dividend announcements for UK firms over the period 1989-2007. We find that the market … opportunities (low Tobin's q). For lower-growth firms, we do not find any evidence that the firm is using a special dividend to … signal future cash flow performance. Rather, it appears that these firms are using a special dividend to distribute cash that …
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