Institutional Holdings and Payout Policy
- Topics:
- Investment and Capital Markets
- Source:
- Cornell University
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Overview: This paper examines the relation between institutional holdings and payout policy in U.S. public firms. It is found that payout policy affects institutional holdings. Institutions avoid firms that do not pay dividends. However, among dividend paying firms, they prefer firms that pay fewer dividends. The evidence indicates that institutions prefer firms that repurchase shares and regular re-purchasers to non-regular re-purchasers. Higher institutional holdings or a concentration of holdings does not cause firms to increase their dividends, their repurchases, or their total payout.
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Format: PDF | Size: 322KB | Date: Aug 2004 | Pages: 46
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