A Lintner Model of Payout and Managerial Rents

Lambrecht, Bart M.; Myers, Stewart C.

doi:10.2139/ssrn.1571081

Cited by 63 publications

(131 citation statements)

References 63 publications

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“…Something has to give. This inference is closely related to Lambrecht and Myers's () conclusion that target adjustment models for payout and capital structure cannot coexist. Their reasoning is that a firm's budget constraint implies that a dynamic theory of payout and investment effectively dictates a dynamic theory of capital structure.…”

Section: Summary and Implications Of The Evidencesupporting

confidence: 66%

How Stable Are Corporate Capital Structures?

DeAngelo¹,

Roll

2015

The Journal of Finance

313

114

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Leverage cross sections more than a few years apart differ markedly, with similarities evaporating as the time between cross sections lengthens. Many firms have high and low leverage at different times, but few keep debt-to-assets ratios consistently above 0.500. Capital-structure stability is the exception, not the rule, occurs primarily at low leverage, and is virtually always temporary, with many firms abandoning low leverage during the post-war boom. Industry-median leverage varies widely over time. Targetleverage models that place little or no weight on maintaining a particular leverage ratio do a good job replicating the substantial instability of the actual leverage cross-section.

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Section: Summary and Implications Of The Evidencesupporting

confidence: 66%

How Stable Are Corporate Capital Structures?

DeAngelo¹,

Roll

2015

The Journal of Finance

313

114

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“…For a recent theoretical paper that builds on Lintner's model, see Lambrecht and Myers (2012). There are also, however, critics, among them, DeAngelo et al (2008), who argue that the model has lost some of its descriptive ability, mostly because fewer firms have a well-defined target payout ratio.…”

Section: Introductionmentioning

confidence: 99%

The Lintner model revisited: Dividends versus total payouts

Andrés

Doumet

Fernau

et al. 2015

Journal of Banking & Finance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. with the prediction that tax considerations are a major driver of payout decisions. Our results instead support the flexibility hypothesis that predicts that dividends are used to disburse permanent, and repurchases transitory, earnings. Terms of use: Documents inJEL classification: G32; G35

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“…The earnings growth has not been impacted by the payout which was the result in the base study. However, it has been affected by earnings yield, annual growth in assets and return on assets [42,43].…”

Section: Earnings Growthmentioning

confidence: 99%

The Study to Check the Applicability of Arnott and Asness Model on KSE 100 Index from 2005-2015

Zehra¹,

Altajjari²

2016

J Stock Forex Trad

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The purpose of this research is to find out the impact of dividend payments on the earnings of companies listed on Pakistan Stock Exchange. The sample includes firm listed on the Karachi Stock Exchange 100 index for a time period of 2005-2015. The model was applied where they refuted the conventional theory that said dividend payments do not affect future earnings of the company, on the aggregate U.S. Market (S&P 500). Our variables include size, return of asset, payout ratio, leverage taken by the company, earnings over price, past earnings growth, exchange rate and annual growth.This study holds importance in respect to finding out whether our results will vary after applying the model studied in the developed economy or it holds same results in the developing economies. One important insight that we aim to find out is whether companies, in order to maximize shareholder's wealth, should pay dividend or retain it back for further reinvestments.

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A Lintner Model of Payout and Managerial Rents

Cited by 63 publications

References 63 publications

How Stable Are Corporate Capital Structures?

How Stable Are Corporate Capital Structures?

The Lintner model revisited: Dividends versus total payouts

The Study to Check the Applicability of Arnott and Asness Model on KSE 100 Index from 2005-2015

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