The dividend policy is one of the most debated topics in the finance literature. According to the dividend signalling hypothesis, which has motivated a significant amount of theoretical and empirical research, dividend change announcements trigger share returns because they convey information...

The IDW (Institut der Wirtschaftspruuml;fer in Deutschland) proposes to derive the cost of capital, that are required for valuation with the DCF-approach, by using the Tax-CAPM. The original version of the model assumes deterministic dividends. To valuate stochastic cash-flows however, a...

This study's underlying premise is that current pension plan accounting has two important negative effects. First, it distorts the measurement of earnings and net worth in the short run, as well as the pattern of earnings over future periods. Second, this distortion can send incorrect signals to...

This paper studies the level and dynamics of the value of aggregate liquidity induced by firms' financing shortfalls. We model liquidity and cash flows as internal funds available for investment in an economy where external funds are costly. We study whether the use of liquidity to hedge...

This paper studies the relationship between companies' choice of capital structure and their stock market returns from a corporate governance perspective. A portfolio buying low-levered, zero payout stocks and selling high-levered, zero payout stocks earned abnormal returns of 8.5% per year from...

Prior research shows that the cash component of earnings is more persistent than the accrual component of earnings. We investigate whether the persistence of the cash component is influenced by management's decision to retain or distribute cash flows. We find that when firms retain the cash...

The research examines the relationship of financial policy (dividend and leverage) influenced managerial ownership. Managerial ownership as dependent variable regressed with dividend and leverage policy that already separate the effect of agents and insiders wealth. Logit Model is use to examine...

This paper provides an overview of existing research on how corporate restructuring affects the wealth of creditors. Restructuring is defined as any transaction that affects the firm's underlying capital structure. Thus, it reaches well beyond asset restructuring and includes transactions such...

We investigate the effect of shareholder taxes on expected stock returns using a model that characterizes both the optimal portfolios of taxable and tax-exempt investors and the expected rates of return on risky stocks. When all income is taxed at the same effective rate, each investor's...

There will be examined whether the market interprets changes in dividends as a signal about the persistence of past earnings changes. Prior to observing the signal of this change, investors may believe that previous earnings variations are not necessarily indicative of future earnings levels....