Payout Policy Pedagogy: What Matters and Why

DeAngelo, Harry; DeAngelo, Linda

doi:10.2139/ssrn.890616

Cited by 15 publications

(15 citation statements)

References 36 publications

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“…During that time frame, investors and financial analysts increasingly pushed firms to pay out in the form of dividends or share repurchases (e.g. DeAngelo and DeAngelo, 2007;Jensen, 1983, 1985;Jensen, 1986Jensen, , 1989. The question investigated here is whether diversified firms can counterbalance their negative perception by complying to another demand of financial markets' participants, namely distributing dividends.…”

Section: 4 S T R At E G I C O R G a N I Z At I O N 6 ( ) B A S C L mentioning

confidence: 99%

Controlling for endogeneity with instrumental variables in strategic management research

Bascle

2008

Strategic Organization

919

753

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This article offers a framework to understand how endogeneity arises and how to control for it with instrumental variables to estimate causal relations with observational data. It builds on the state-of-the-art research in applied and theoretical econometrics to highlight the importance of endogeneity and review the methods that can be used to address it with instrumental variables. The article also discusses when the Heckman two-step procedure can be used, as well as the tests, methods and assumptions that researchers should check when using instrumental variables.To ease implementation of the instrumental variables techniques, the author offers the STATA commands of the exposed tests and methods. Further, an empirical example is provided along with the utilized STATA codes. In the end, this article serves as a 'toolkit' allowing scholars not only to understand whether endogeneity is present in their empirical setting, but also to assess the empirical validity of their work when using instrumental variables.

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Section: 4 S T R At E G I C O R G a N I Z At I O N 6 ( ) B A S C L mentioning

confidence: 99%

Controlling for endogeneity with instrumental variables in strategic management research

Bascle

2008

Strategic Organization

919

753

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“…As shareholders are mindful of this fact, they will want to develop strategies of controlling managers' behaviours [Jensen & Meckling, 1976]. Constant dividend payments will decrease the free cash flows available to the managers and consequently ensures that managers will maximize shareholders' wealth rather than employing the funds for their private benefits [DeAngelo & DeAngelo, 2006].…”

Section: Relevance Propositions Bird In Hand Theorymentioning

confidence: 99%

Analysis of the Determinants of Dividend Payout of Consumer Goods Firms in Nigeria

Okoro¹,

Ezeabasili²,

Alajekwu³

2018

ASHU- ES

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“…The existing literature about dividend policies in nonfinancial firms finds that the following firm characteristics can influence dividend policy: insider-outsider (IO) conflict (Easterbrook, 1984;Jensen, 1986;Faccio et al, 2001), asset growth (Fama and French, 2001), size (Fama and French, 2001;DeAngelo et al, 2004;Denis and Osobov, 2008), profitability (Fama and French, 2001;DeAngelo et al, 2004;Denis and Osobov, 2008), earned equity (DeAngelo et al, 2006;von Eije and Megginson, 2008;DeAngelo and DeAngelo, 2007), a recent quotation on the stock market (Cornett et al, 2008), and the legal framework of the country of origin (La Porta et al, 2000). Consequently, I include several control variables to allow for the impact of these factors.…”

Section: Definition Of Explanatory Variablesmentioning

confidence: 99%

Moral Hazard, Dividends and Risk in Banks

Onali

2010

SSRN Journal

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In nonfinancial firms, higher risk taking results in lower dividend payout ratios. In banking, public guarantees may result in a positive relation between dividend payout ratios and risk taking. I investigate the interplay between dividend payout ratios and bank risk-taking allowing for the effect of charter values and capital adequacy regulation. I find a positive relation between bank risk-taking and dividend payout ratios. Proximity to the required capital ratio and a high charter value reduce the impact of bank risk-taking on the dividend payout ratio. My results are robust to different proxies for the dividend payout ratio and bank risk-taking.

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Payout Policy Pedagogy: What Matters and Why

Cited by 15 publications

References 36 publications

Controlling for endogeneity with instrumental variables in strategic management research

Controlling for endogeneity with instrumental variables in strategic management research

Analysis of the Determinants of Dividend Payout of Consumer Goods Firms in Nigeria

Moral Hazard, Dividends and Risk in Banks

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