Skip to main content
×
Home
    • Aa
    • Aa
  • Get access
    Check if you have access via personal or institutional login
  • Cited by 4
  • Cited by
    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Huang, Rongbing Ritter, Jay R. and Zhang, Donghang 2016. Private Equity Firms’ Reputational Concerns and the Costs of Debt Financing. Journal of Financial and Quantitative Analysis, Vol. 51, Issue. 01, p. 29.


    Tong, Jiao and Bremer, Marc 2016. Stock repurchases in Japan: A solution to excessive corporate saving?. Journal of the Japanese and International Economies, Vol. 41, p. 41.


    Iliev, Peter and Lowry, Michelle 2015. Are Mutual Funds Active Voters?. Review of Financial Studies, Vol. 28, Issue. 2, p. 446.


    Louis, Henock and Urcan, Oktay 2015. Agency Conflicts, Dividend Payout, and the Direct Benefits of Conservative Financial Reporting to Equity-Holders. Contemporary Accounting Research, Vol. 32, Issue. 2, p. 455.


    ×
  • Journal of Financial and Quantitative Analysis, Volume 48, Issue 3
  • June 2013, pp. 729-760

The Shareholder Base and Payout Policy

  • Andriy Bodnaruk (a1) and Per Östberg (a2)
  • DOI: http://dx.doi.org/10.1017/S0022109013000252
  • Published online: 01 May 2013
Abstract
Abstract

We examine the relation between the shareholder base and payout policy. Consistent with the idea that the shareholder base is related to the cost of external financing, we find that firms with small shareholder bases have lower payout levels and maintain higher cash holdings. We show that undertaking an open market repurchase results in a significant reduction in the size of the shareholder base. Consequently, we find that firms with small shareholder bases are less likely to undertake a repurchase (reduce the shareholder base even further) and are more likely to pay special dividends.

Copyright
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Y. Amihud ; H. Mendelson ; and J. Uno . “Number of Shareholders and Stock Prices: Evidence from Japan.” Journal of Finance, 54 (1999), 11691184.

M. Banyi ; E. A. Dyl ; and K. Kahle . “Errors in Estimating Share Repurchases.” Journal of Corporate Finance, 14 (2008), 460474.

M. J. Barclay , and C. W. Smith Jr.Corporate Payout Policy: Cash Dividends versus Open-Market Repurchases.” Journal of Financial Economics, 22 (1988), 6182.

H. Bessembinder Trade Execution Costs and Market Quality after Decimalization.” Journal of Financial and Quantitative Analysis, 38 (2003), 747777.

J. H. Bjerring ; J. Lakonishok ; and T. Vermaelen . “Stock Prices and Financial Analysts’ Recommendations.” Journal of Finance, 38 (1983), 187204.

F Black . “The Dividend Puzzle.” Journal of Portfolio Management, 2 (1976), 58.

A. Brav ; J. R. Graham ; C. R. Harvey ; and R. Michaely . “Payout Policy in the 21st Century.” Journal of Financial Economics, 77 (2005), 483527.

M. J. Brennan , and C. Tamarowski . “Investor Relations, Liquidity and Stock Prices.” Journal of Applied Corporate Finance, 12 (2000), 2637.

P. Brockman , and D. Y. Chung . “Managerial Timing and Corporate Liquidity: Evidence from Actual Share Repurchases.” Journal of Financial Economics, 61 (2001), 417448.

S Cleary . “The Relationship between Firm Investment and Financial Status.” Journal of Finance, 54 (1999), 673692.

H. DeAngelo ; L. DeAngelo ; and D. J. Skinner . “Special Dividends and the Evolution of Dividend Signaling.” Journal of Financial Economics, 57 (2000), 309354.

A. Demirgüç-Kunt , and V. Maksimovic . “Law, Finance, and Growth.” Journal of Finance, 53 (1998), 21072137.

E. Dimson , and P. R. Marsh . “An Analysis of Brokers’ and Analysts’ Unpublished Forecasts of UK Stock Returns.” Journal of Finance, 39 (1984), 12571292.

A. Dittmar , and J. Mahrt-Smith . “Corporate Governance and the Value of Cash.” Journal of Financial Economics, 83 (2007), 599634.

A. Dittmar ; J. Mahrt-Smith ; and H. Servaes . “International Corporate Governance and Corporate Cash Holdings.” Journal of Financial and Quantitative Analysis, 38 (2003), 111134.

A. Durnev , and E. H. Kim . “To Steal or Not to Steal: Firm Attributes, Legal Environment, and Valuation.” Journal of Finance, 60 (2005), 14611493.

E. F. Fama , and K. R. French . “Industry Costs of Equity.” Journal of Financial Economics, 43 (1997), 153193.

E. F. Fama , and J. D. MacBeth . “Risk, Return and Equilibrium: Empirical Tests.” Journal of Political Economy, 81 (1973), 607636.

L. Fang , and J. Peress . “Media Coverage and the Cross-Section of Stock Returns.” Journal of Finance, 64 (2009), 20232052.

V. W. Fang ; T. H. Noe ; and S. Tice . “Stock Market Liquidity and Firm Value.” Journal of Financial Economics, 94 (2009), 150169.

S. R. Foerster , and G. A. Karolyi . “The Effects of Market Segmentation and Investor Recognition on Asset Prices: Evidence from Foreign Stocks Listing in the United States.” Journal of Finance, 54 (1999), 9811013.

P. A. Gompers ; J. L. Ishii ; and A. Metrick . “Corporate Governance and Equity Prices.” Quarterly Journal of Economics, 118 (2003), 107155.

J. R. Graham , and A. Kumar . “Do Dividend Clienteles Exist? Evidence on Dividend Preferences of Retail Investors.” Journal of Finance, 61 (2006), 13051336.

W Greene . “Fixed Effects and Bias due to the Incidental Parameters Problem in the Tobit Model.” Econometric Reviews, 23 (2004a), 125147.

W Greene . “The Behaviour of the Maximum Likelihood Estimator of Limited Dependent Variable Models in the Presence of Fixed Effects.” Econometrics Journal, 7 (2004b), 98119.

Y. Grinstein , and R. Michaely . “Institutional Holdings and Payout Policy.” Journal of Finance, 60 (2005), 13891426.

G. Grullon , and D. Ikenberry . “What Do We Know About Stock Repurchases?Journal of Applied Corporate Finance, 13 (2000), 3151.

G. Grullon ; G. Kanatas ; and J. Weston . “Advertising, Breadth of Ownership, and Liquidity.” Review of Financial Studies,17 (2004), 439461.

J. Harford ; S. A. Mansi ; and W. F. Maxwell . “Corporate Governance and Firm Cash Holdings in the U.S.” Journal of Financial Economics, 87 (2008), 535555.

B. Holmström , and J. Tirole . “Market Liquidity and Performance Monitoring.” Journal of Political Economy, 101 (1993), 678709.

H. Hong ; J. D. Kubik ; and J. C. Stein . “The Only Game in Town: Stock-Price Consequences of Local Bias.” Journal of Financial Economics, 90 (2009), 2037.

A. Hovakimian ; T. Opler ; and S. Titman . “The Debt-Equity Choice.” Journal of Financial and Quantitative Analysis, 36 (2001), 124.

D. Ikenberry ; J. Lakonishok ; and T. Vermaelen . “Market Underreaction to Open Market Repurchases.” Journal of Financial Economics, 39 (1995), 181208.

D. Ikenberry ; J. Lakonishok ; and T. Vermaelen . “Stock Repurchases in Canada: Performance and Strategic Trading.” Journal of Finance, 55 (2000), 23732397.

G. B. Kadlec , and J. J. McConnell . “The Effect of Market Segmentation and Illiquidity on Asset Prices: Evidence from Exchange Listings.” Journal of Finance, 49 (1994), 611636.

K. M Kahle . “When a Buyback Isn’t a Buyback: Open-Market Repurchases and Employee Options.” Journal of Financial Economics, 63 (2002), 235261.

S. N. Kaplan , and L. Zingales . “Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?Quarterly Journal of Economics, 112 (1997), 169215.

M. R. King , and D. Segal . “The Long-Term Effects of Cross-Listing, Investor Recognition, and Ownership Structure on Valuation.” Review of Financial Studies, 22 (2009), 23932421.

R. Lehavy , and R. G. Sloan . “Investor Recognition and Stock Returns.” Review of Accounting Studies, 13 (2008), 327361.

R. C Merton . “A Simple Model of Capital Market Equilibrium with Incomplete Information.” Journal of Finance, 42 (1987), 483510.

J. M. Miller , and J. J. McConnell . “Open-Market Share Repurchase Programs and Bid-Ask Spreads on the NYSE: Implications for Corporate Payout Policy.” Journal of Financial and Quantitative Analysis, 30 (1995), 365382.

W. K. Newey , and K. D. West . “A Simple, Positive Semi-Definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix.” Econometrica, 55 (1987), 703708.

J. Neyman , and E. L. Scott . “Consistent Estimates Based on Partially Consistent Observations.” Econometrica, 16 (1948), 132.

M. Rhodes-Kropf ; D. Robinson ; and S. Viswanathan . “Valuation Waves and Merger Activity: The Empirical Evidence.” Journal of Financial Economics, 77 (2007), 561603.

M. S. Rozeff Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios.” Journal of Financial Research, 5 (1982), 249259.

C. Stephens , and M. Weisbach . “Actual Share Reacquisitions in Open-Market Repurchase Programs.” Journal of Finance, 53 (1998), 313334.

T. M. Whited , and G. Wu . “Financial Constraints Risk.” Review of Financial Studies, 19 (2006), 531559.

K Womack . “Do Brokerage Analysts’ Recommendations Have Investment Value?Journal of Finance, 51 (1996), 137157.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Financial and Quantitative Analysis
  • ISSN: 0022-1090
  • EISSN: 1756-6916
  • URL: /core/journals/journal-of-financial-and-quantitative-analysis
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×