firms, we estimate models for dividends, new equity issuance and investment, relating them to debt adjustment. The results … suggest that while dividends are sticky in the short run, they are an important means of balance sheet adjustment in the long … run. Other evidence supports the idea that companies actively target their balance sheet by variation in dividends, new …

Firms pay out cash using both dividends and share repurchases. In many aspects these two means are similar, but one … important difference is that dividends are generally taxed more heavily than share repurchases. Nevertheless firms persist in … the models are consistent with several important empirical facts about dividends and share repurchases. Thus, this paper …

. Measures of liquidity and demand for dividends are associated with larger price increases in the period before the ex-day (when …

distribute cash to shareholders in two forms: dividends and tax-advantaged interest on equity. The Brazilian institutional … setting is superior to those used in prior studies that examine the choice between dividends and capital gains because, in … some cases, dividends provide advantages that outweigh their negative tax consequences, leading firms to rationally choose …

of unique data for which there are no taxes on dividends and capital gains and tick size is fixed for all traded …

This paper examines the stock price effect in New Zealand of announcements of increases in dividends and of share … repurchases from 1993 to 2009. The results are related to the soft substitution hypothesis on Australian data. Dividend … repurchases, and do so to a greater degree than for firms that only use one form of distribution. …

We first extend Baker and Wurgler's (2004a) catering theory of dividends to share repurchases. Consistent with the … notion that firms cater to investor demand for share repurchases, we report evidence that the market's time … for testing the dividend substitution hypothesis. Consistent with the notion that managers consider dividends and share …

advantageousness of dividends in comparison to capital gains after the reform. …

payouts for a panel of 5,767 firms from 25 countries for 1990-2008. We find robust evidence that the tax penalty on dividends … versus capital gains is statistically significant and negatively related to firms’ propensity to pay dividends, initiate such … payments, and the amount of dividends paid. Our analysis further reveals that an increase in the dividend tax penalty raises …