Patterns in Payout Policy and Payout Channel Choice of UK Firms in the 1990s
- Topics:
- Dividends
- Source:
- Tilburg University
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Overview: The paper examines the payout policy of UK firms listed on the London Stock Exchange during the 1990s. It complements the existing payout literature studies by analyzing jointly the trends in dividends and share repurchases. The role of share repurchases is increasing, but dividends still constitute a vast proportion of the total payout. Firms repurchasing shares usually pay dividends as well. It also document that there is a strong relationship between the presence of block holders and the choice of the payout channel: firms with concentrated ownership tend to opt for dividends rather than share repurchases, irrespectively of the identity of the controlling shareholder.
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Format: PDF | Size: 482KB | Date: Feb 2005 | Pages: 55
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