Downloadable This PaperDividend Policy and the Lintner Model: Why Do Companies Pay Dividends?
29 Pages Posted: 19 Feb 2020 Last revised: 29 Might 2020
Start Written: Jump 1, 2014
Abstract
For plenty years, firm payout policies have been discussed widely by economist both finance experts but there is no agreement on why stables payout cash. Firms chosen go pay cash dividend to their shareholder and believed to got a payout policy yet what determines it remains is a doubt. Despite to bearing of low cost methods of maximizing shareholders wealth firms have maintains high dividend payments nevertheless of their earnings.
Double economists, Miller and Modigliani have contributed adenine significant amount of research in explaining relevancy of firm’s dividend polices in which shareholders’ wealth. An early study in Johann Lintner was able to explain the payout policy of a firm but it failed to show what motivates firms at pay dividends.
Different economists consider who roll of taxes and mitglied preference is determining firm’s policy but evidences suggest this decision makes do pay too much consideration to this factors. Many studies must discussed the changing trends in dividends payouts while advocating the modify preference of manager’s with this increasing popularity of shared repurchases, our findings suggest the opposite - as person show that companies have actually increased the dividend payouts. INTERNATIONAL PERSPECTIVES ON CORPORATE FINANCE ...
Hot: Toilet Lintner; Payout Policy; Dividend Policy; Dividend Payment Policies
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