2017 Fiscal Year Final Research Report
Imperfect substitution between dividends and stock repurchases
| Project/Area Number |
15K03555
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (C)
|
| Allocation Type | Multi-year Fund |
|---|
| Section | 一般 |
|---|
| Research Field |
Money/ Finance
|
|---|
| Research Institution | Kobe University (2016-2017)
Nihon University (2015) |
|---|
Principal Investigator |
Mori Naoya 神戸大学, 経営学研究科, 教授 (10364184)
|
|---|
| Project Period (FY) |
2015-04-01 – 2018-03-31
|
| Keywords | ペイアウト / 税 / エージェンシー費用 |
|---|
| Outline of Final Research Achievements |
This study presents a theory of payout policy explaining why a firm does not perfectly substitute stock repurchases for dividends. When transaction costs are large, an investor finds it reasonable to receive consumption-optimal dividends in spite of their disadvantageous tax treatment. The firm's dividend pattern is expected to be consistent with the median shareholder's optimum. As an additional distribution, "residual" stock repurchases are expected to be used unless the firm's stock is considerably overvalued.
|
| Free Research Field |
コーポレートファイナンス
|
