Dividends: Relevance, Rigidity, and Signaling

Karpavičius, Sigitas

doi:10.2139/ssrn.1991417

Cited by 9 publications

(26 citation statements)

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“…Debt issue costs, long bond maturities, and firms' inability to call back their bonds suggest that debt adjustment costs might be high enough to prevent firms from issuing or reissuing debt securities when interest rates are low or buying back their bonds when interest rates are high. We use the dynamic stochastic partial equilibrium model developed in Karpavičius (2014b) to show how debt adjustment costs impact the sensitivity of leverage to interest rates.…”

Section: Why Is the Relation Between Interest Rates And Leverage Weak?mentioning

confidence: 99%

“…High adjustment costs are likely to remove any incentives for firms to rebalance their capital structures. We conduct the sensitivity analysis of the number of shares outstanding adjustment costs using the model in Karpavičius (2014b). The functional form of the quadratic number of shares outstanding adjustment costs is as follows:…”

Section: Why Is the Relation Between Interest Rates And Leverage Weak?mentioning

confidence: 99%

“…2 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 (not 1 percentage point or 100 basis points) increase in risk-free rate which quarterly value is set to 0.01. We use the model from Karpavičius (2014b). The series name reflects the value of the parameters of debt (subfigure a) and the number of shares outstanding (subfigure b) adjustment costs.…”

Section: Variable Definitionsmentioning

confidence: 99%

“…inKarpavičius (2014b) which defines the interest rate at which a firm can borrow funds, rt, to include the exogenous shock to the hypothetical interest rate on corporate bonds for firms with zero leverage (it can be also interpreted as risk-free rate), r…”

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confidence: 99%

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The impact of interest rates on firms' financing policies

Karpavičius

2017

Journal of Corporate Finance

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Section: Why Is the Relation Between Interest Rates And Leverage Weak?mentioning

confidence: 99%

Section: Why Is the Relation Between Interest Rates And Leverage Weak?mentioning

confidence: 99%

Section: Variable Definitionsmentioning

confidence: 99%

mentioning

confidence: 99%

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The impact of interest rates on firms' financing policies

Karpavičius

2017

Journal of Corporate Finance

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“…The model is calibrated mostly as in Karpavičius (2014b). We assume that the variables are measured quarterly.…”

Section: Calibrationmentioning

confidence: 99%

Should interest expenses be tax deductible?

Karpavičius

2016

Economic Modelling

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Value creation, innovation practice, and competitive advantage

Battisti

Miglietta

Nirino

et al. 2019

EJIM

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Purpose The purpose of this paper is to analyse companies listed on the FTSE MIB, in order to investigate the introduction of different types of open innovation practice as a key factor to develop a competitive advantage to pursue value creation. Design/methodology/approach This research uses a mixed-methods sequential explanatory design. A quantitative study was conducted to determine the firms listed on the FTSE MIB that for more than 10 years have paid dividends and beat the yield of the market. The qualitative analysis was designed to provide insights into the adoption of at least one open innovation practice by the listed companies selected in the quantitative phase. Findings This work is based on an empirical analysis undertaken with 40 Italian companies listed on the FTSE MIB. In particular, the authors highlight 16 companies that for more than a decade have regularly paid dividends and, at the same time, have beat the FTSE MIB Index. All of these companies implemented at least one open innovation practice during the period investigated. Originality/value This is among the first pioneer research works based on the potential relationship among value creation, innovation practice and competitive advantage in the Italian market. This study highlights the fact that 16 out of 40 companies listed on the FTSE MIB create more value for shareholders over a long period, and all of these firms adopt different open innovation practices (e.g. partnership and collaboration with external entities; mergers and acquisitions and alliances; investment in start-ups; hackathons and call for ideas; outsourcing R&D) as a key factor to develop a sustainable competitive advantage.

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Dividends: Relevance, Rigidity, and Signaling

Cited by 9 publications

References 0 publications

The impact of interest rates on firms' financing policies

The impact of interest rates on firms' financing policies

Should interest expenses be tax deductible?

Value creation, innovation practice, and competitive advantage

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